A recent global report reveals that while private-sector businesses are significantly increasing investments in the transition to net-zero carbon emissions, the effort is at risk without decisive government action. The report emphasises that achieving the critical goals of halving emissions by 2030 and maintaining the 1.5°C climate target hinges on robust private-sector engagement backed by bold public policies.
The findings, released by the World Business Council for Sustainable Development (WBCSD) in partnership with Bain & Company, the Breakthrough Agenda, and the Marrakech Partnership, are based on a survey of 250 executives from global businesses with a combined market capitalisation exceeding $2 trillion. It found that 90% of respondents are willing to increase investments if governments address key barriers.
Currently, 74% of businesses have ramped up their net-zero investments over the past three years, with 35% allocating more than half of their capital investments to this effort. Despite these strides, only 1% of businesses believe the transition is on track.
The report identifies two major obstacles to accelerating progress: a weak investment case and delays in infrastructure development. These challenges are exacerbated by rising costs, slow permitting processes, uncertain revenue models, and limited deployment of low-carbon fuels and energy networks. Business leaders warn that these issues threaten the next wave of large-scale investments required to meet net-zero goals.
Peter Bakker, President and CEO of WBCSD, highlighted the urgency of government action. “Businesses are taking serious steps, but without bold government intervention, we risk losing unprecedented investment opportunities,” he said.
In sectors such as steel, cement, aviation, shipping, and chemicals—where decarbonisation is particularly difficult—voluntary market mechanisms are failing to keep pace with the scale of the challenge. The report calls for comprehensive industrial policies to address these barriers, including streamlined permitting, mandatory demand targets, revenue guarantees for early-stage technologies, and government investment in infrastructure and innovation.
International coordination is also deemed crucial, with 85% of business leaders stressing its importance. However, only 25% view current global efforts as effective. Businesses are urging harmonised standards, consistent trade rules, and cross-border infrastructure to create a stable investment environment.
Despite these challenges, there are signs of progress. Planned capacity for hydrogen-fueled steel plants has increased by 150% in the past year, and orders for methanol-fueled ships have grown by 80%. Sustainable Aviation Fuel usage is expected to rise by 165%. However, these efforts remain constrained by high costs and supply limitations.
In regions where governments have implemented supportive policies, businesses are responding decisively. Tax incentives under the U.S. Inflation Reduction Act have spurred investments in hydrogen, batteries, and chemicals, while European mandates for Sustainable Aviation Fuel are driving increased production. Cities such as Paris, New York, and Singapore have emerged as leaders in low-carbon urban investments, leveraging integrated planning and public-private partnerships.
Cate Hight, Partner at Bain & Company, stressed the need for urgency. “While progress is evident, we are not moving fast enough. Businesses need stronger policy support to scale low-carbon technologies in this critical decade,” she said.
As nations prepare to submit enhanced climate plans, Christiana Figueres, former Executive Secretary of the UNFCCC, described the report as a clear signal for action. “The report highlights an enormous appetite from businesses to invest in the net-zero transition but also their frustration with existing market structures. Governments must act boldly to help businesses go further, faster,” she said.
The findings make it clear that while businesses are stepping up, the transition to a net-zero future requires a stronger partnership between the public and private sectors to overcome existing barriers and seize emerging opportunities.
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