Never has it been more important that the G7 shows leadership on climate change and protecting our natural environment. The UK has a unique opportunity to lead international action on climate change as we host the G7 and COP26 this year. Meanwhile, the need to recover following the devastating health and economic impacts of the pandemic means there is an opportunity to shape a more sustainable future, as government action can help accelerate investment in low-carbon technologies and protect and enhance our natural environment.
Ahead of the G7 Climate Ministerial meeting on 20-21 May, the B7 federations - including the CBI - have published a Climate and Biodiversity Statement setting out business commitments and recommendations for international policy priorities.
As leading national business associations from G7 countries, the B7, we highlight three overarching priorities for the G7 governments:
- Demonstrating national climate leadership ahead of COP26
- Developing coordinated policy that enables pathways for critical sectors around the world to decarbonise
- Creating the enablers for business action with international approaches to sustainable finance and biodiversity that support investment
During this crucial year for climate action, we make a number of specific recommendations to governments and the business community to take forward. These are designed to tackle urgent sector decarbonisation priorities, such as the phase out of unabated coal for power generation; progressing international alignment on sustainable finance, and business and government action to support the development of markets that value biodiversity.
- The G7 should lead international action on agreed cross-economy net-zero targets by progressing decarbonised power generation. Setting a target to phase out unabated coal in power generation, where feasible by 2040, as a benchmark for policy ambition could be an important signal. Governments will need to implement detailed policy plans and incentives to support industry, workers and communities impacted by the transition, and drive innovation in abatement technologies and alternative zero-carbon power generation technologies.
- The G7 should increase international alignment in developing sustainable finance taxonomies, disclosures, regulations, and policy frameworks to support climate risk mitigation and facilitate the growth of sustainable finance.
- G7 nations should prioritise national policies to support the development of markets that value biodiversity, natural environments and natural carbon sinks, and nature-positive business activity.
- The B7 commit to further work to shape the principles for ‘nature-positive’ business action and supports business in quantifying their impact on nature and how to value natural assets and services.
The B7 Climate and Biodiversity Policy group is comprised of the CBI, BDI, BusinessEurope, Canadian Chamber of Commerce, Confindustria, Keidanren, MEDEF and the U.S. Chamber of Commerce and is chaired by Ben van Beurden, CEO of Royal Dutch Shell.