Business Leaders Call for Urgent Government Action to Accelerate Net Zero Transition

Business leaders worldwide are sounding the alarm: the net zero transition is falling behind, and bold government action is essential to unlock the full potential of private sector investments. A recent report by the World Business Council for Sustainable Development (WBCSD), in partnership with Bain & Company and the Breakthrough Agenda, reveals both the opportunities and barriers facing businesses in achieving global climate goals.

The Investment Opportunity in Net Zero

According to the report, 91% of business leaders view the transition to net zero as a significant investment opportunity, but only a mere 1% believe the transition is on track across key sectors responsible for 70% of global emissions. Despite growing investments—74% of businesses have increased their spending on net zero efforts in the last three years—many barriers are slowing progress.

Peter Bakker, President and CEO of WBCSD, stated:

“Businesses are stepping up, but without decisive government action, we risk missing out on the unprecedented investment opportunities ahead.”

Urgent Barriers: Infrastructure and Policy Gaps

Two-thirds of businesses identify the lack of a strong investment case and the slow scale-up of infrastructure as the most pressing challenges. Macroeconomic hurdles such as rising costs, lengthy permitting processes, and limited low-carbon infrastructure are delaying critical projects. For instance:

Inflation in capital costs for green projects has reached 50%.
Renewable energy prices remain high.
Delays in grid interconnections and charging network rollouts are stalling progress.

Without clear, long-term government policies, businesses warn that the next wave of large-scale investments may not materialize. Nine out of ten companies say they are ready to invest more if governments address these barriers.

The Need for Bold Government Policies

The report highlights how specific industrial policies can unlock private-sector investments. Key recommendations include:

Streamlined permitting to accelerate project approvals.
Mandated demand for low-carbon technologies in sectors like steel, cement, and aviation.
Government investment in infrastructure to reduce risks for early-stage technologies.
Stronger international coordination on standards, trade rules, and cross-border infrastructure.

Cate Hight, Partner at Bain & Company, noted:

“This year’s barometer is a clear message from business that additional policy support is crucial to set the market conditions necessary for lower carbon technologies to scale in this crucial decade."

Positive Momentum Amid Challenges

Despite the barriers, businesses are already making strides:

Steel companies have committed billions to hydrogen-fueled plants, increasing planned capacity by 150% in just a year.
Shipping companies have grown orders for methanol-fueled ships by 80%, although the supply of green fuels remains insufficient.
Airlines have significantly increased their use of Sustainable Aviation Fuel (SAF), but costs remain two to three times higher than conventional fuel.

In regions where governments have adopted ambitious policies, progress has been more pronounced. For example:

Tax incentives under the Inflation Reduction Act in the U.S. have made the country a top destination for investments in hydrogen, batteries, and chemicals.
Strong local policies in countries like Vietnam and Indonesia have driven exponential growth in electric vehicle adoption.
City-level regulations in Paris, New York, and Singapore are accelerating low-carbon investments in buildings through integrated urban planning.

A Call for Action at COP29

As governments prepare for COP29, the business community is urging policymakers to act boldly and create the conditions for a successful net zero transition. The report underscores the immense opportunities for corporate investment if market structures are reformed to reward low-carbon innovations.

Christiana Figueres, Former Executive Secretary of the UNFCCC, emphasized:

“This is a wake-up call for governments to include ambitious mandates in their national climate plans that will help businesses go faster.”

The net zero transition is not just a necessity—it’s a tremendous opportunity. With the right policies in place, governments and businesses can work together to unlock a new era of sustainable growth.