Governments Cannot Deliver Without Business, Says Stigson

Copenhagen, 17 December 2009 - Business leaders and ministers from developed and developing countries today participated in a constructive, high-level dialogue led by Bjorn Stigson, President of the World Business Council for Sustainable Development, and Yvo de Boer, Executive Secretary of the UNFCCC.

Governments “will not solve climate change without business at the table as an engaged, involved partner - Governments cannot deliver on the targets which are being talked about without business,” said Mr Stigson. He then went on to provide the ministers with messages that business wants governments to heed in their climate talks. These messages were developed by business during the Global Business Day held on 11 December in Copenhagen.

Yvo de Boer and the ministerial representatives recognized the necessity and value of business' role, and encouraged business to continue to seek ways to present views and contributions in a way that is relevant to the process and with ideas that can offer solutions and answers.

Messages to the Business-Ministerial Breakfast on 17 December 2009 from the Global Business Day held 11 December 2009

What is the Global Business Day?
Global Business Day is a yearly gathering of global business leaders at the climate change negotiations (COPs) where these leaders debate and promote the business perspectives on the climate change agenda.

This year's event, as in Bali and Poznan before, was organized by the WBCSD and the International Chamber of Commerce (ICC). This year it was co-organized with the Confederation of Danish Industries (DI) as a local partner.

It brought together some 400 participants, including UNFCCC Executive Secretary Yvo de Boer, business leaders and representatives from civil society. We had a record number of company CEOs taking part.

“Mood of the room”
The mood of business in the room was highly energized, pushing to move forward and to implement actions.

There was clear impatience with the slow pace of government actions and lack of clarity on the ambitions and context for business actions.

Closed CEO session
A closed CEO session with some 25 participants held a two and a half hour meeting focusing on where we might be by 2020 as a global society.

Two scenarios were discussed:

• A successful implementation of climate actions by 2020
• A failure by 2020

Why did each of these scenarios happen? What triggered or hindered actions?

Outcomes - How does business view the climate challenge?
The science is accepted. Business does not question climate science. The issue was not brought up by any panelist at the Business Day.

The growth story
Business is looking at a fast-growing world that is going to be resource and carbon constrained.

The reasons for this are the 50% population growth up to 2050, a push for improved living standards and quality of life in developing countries, and increased urbanization.

Solutions
To counter this development we need the global society to drive solutions for:

• Energy efficiency
• Green technologies
• New societal infrastructure
• Efficient markets
• Changes of lifestyles and consumption patterns

The role of business
Business is the main tool for implementation of these solutions. Business has the knowledge, management capacity and financial resources to contribute.

Companies must be profitable in order to exist
Therefore business can only implement solutions that make business sense. Investors and financial institutions will not support unprofitable companies.

Business is acting
Business is already implementing actions in many sectors and countries.

“The green race is on”
The green race will determine which countries and companies are going to be the leading suppliers of the green solutions for a future sustainable world.

Japan, the EU, the US and China have already entered this race and so have many companies.

“May the best man win.”

“Language problems”
There are clear “language problems” between governments and business as well as within each constituency: developed and developing countries; big and small companies.

Business and developing countries
Business is the main source of resource flows to developing countries via our normal business actions that happen every day on a massive scale.

85% of global financial flows to developing countries are private sector flows.

The main barrier for further flows is the capacity in developing countries to absorb investments and technology.

Challenge from Yvo de Boer at the Business Day
We invited Yvo de Boer to the Global Business Day and asked him to issue a challenge to Business.

His assertion was that though business often plays an effective role in engaging governments nationally, at the international level, and particularly in Copenhagen, business had “no role to play”.

We find this tough to hear, but we need to listen and learn from such statements.

We believe strongly that you will not tackle climate change without business at the table as an engaged, involved partner – Governments cannot deliver the targets which are being talked about without business.

Key takeaways for governments from Business Day

1. Responsible business supports the need for action and is not standing in your way.

2. Trust needs to be built

Strong actions by business in the future depend on a trustful relation between governments and business.

Business wants clarity and stability in the regulatory framework.

Uncertainty increases risks and will slow down actions.

3. Markets are crucial

Markets are the key tools for implementation.

However, there are market failures that need to be corrected by proper regulations to support the demand for green solutions.

The most important element is a global carbon price.

4. New public-private partnerships are needed

Reaching the mid-term and long-term emission reduction targets expressed by G8, G20 and individual governments will require new public private partnerships.

Business can do more but we need a credible partner.

5. Business as a solution-provider

Business must have a role in supporting the design of the institutions and mechanisms that will be needed to deliver whatever political consensus is reached this week.

This will ensure their efficiency and effectiveness.

Links

• World Business Council for Sustainable Development
• Copenhagen Business Day website
• Report on the Copenhagen Business Day by IISD

Author WBCSD Publication Date 17 Dec 2009 Document Type WBCSD news Issue/Topic Energy & Climate Source WBCSD Include In RSS WBCSD News & Updates