This call to action, led by the We Mean Business Coalition, urges governments to develop and implement Nationally Determined Contributions (NDCs) that are not only ambitious, but also drive accelerated private sector investment in the net zero economy. The next round of NDCs under the Paris Agreement, due by 2025, must represent a progression beyond the previous NDCs, reflect the highest possible ambition of each country, and align with the 1.5°C global goal.
While ambitious targets are essential, they must be followed up by policy implementation. Many companies have taken action to reduce emissions across their operations and supply chains. To go further and reach their goals as quickly as possible, businesses need governments to convert NDCs into clear and consistent policy frameworks that remove barriers to private investment.
To unlock investment, businesses are calling for action from governments, led by the G20 countries, across three pillars:
1. Put forward ambitious 1.5°C-aligned NDCs containing:
• Economy-wide emissions reduction targets that are aligned with 1.5°C, set a just and inclusive path to net zero, and are integrated with national biodiversity strategies and action plans.
• Sector-specific targets, including to increase clean energy and energy efficiency, phase out unabated fossil fuels, and halt and reverse deforestation and forest degradation.
• Clear commitments to actually implement policies that will scale up private investment.
2. Develop clear and consistent policy frameworks to implement NDCs at three levels:
• National-level strategy and planning, and cross-government institutions.
• Sector-specific policies, including for innovation and deployment.
• International coordination on policies and implementation.
3. Undertake transparent and inclusive dialogue with businesses, including:
• Thorough consultations with business and other stakeholders on NDC content.
• Co-creation with business and other stakeholders of solutions for implementation.
• Effective reporting and communication strategies to broaden support for a just net-zero transition.