Business call for climate change framework

Paul Eccleston, Telegraph 30 Nov 07;

International business leaders have called for a legally-binding framework to tackle climate change.

In an unprecedented move 150 global companies have signed up to a communiqué issued on the eve of the Bali climate summit.

Some of the world's biggest brands including Coca-Cola, Shell, Dupont, Gap, GE, Johnson and Johnson, and Nike have put their names to the initiative as well as a number of Chinese companies including Shanghai Electric, Zhufeng Technology and Suntech.

The Prince of Wales, who is backing the initiative, said: " It is my fervent hope that the communiqué will strengthen the resolve of those gathered in Bali to make the tough decisions the world so urgently needs."

The communiqué has been sent to the 130 Environment Ministers who will attend the Bali conference beginning next week. It will also be hand delivered to the UN Secretary General Ban Ki-Moon who will be attending the second week of the conference.

It sets out the companies' belief that "a sufficiently ambitious, international and comprehensive, legally-binding United Nations agreement to reduce greenhouse gas emissions will provide business with the certainty it needs to scale up global investment in low-carbon technologies."

It said the scientific evidence on climate change was now overwhelming and that it presented very serious global social, environmental and economic risks which demanded an urgent global response.

But it also presented a strong business case for action and the shift to a low-carbon economy would create significant business opportunities.

"As business leaders, it is our belief that the benefits of strong, early action on climate change outweigh the costs of not acting," the communiqué said.

The costs of action were "manageable" but each year of delay would cause greater disruption.

The business leaders indicated that overall targets for emissions reduction had to be guided primarily by science and not by economic principles.

They noted that evidence from the Intergovernmental Panel on Climate Change (IPCC) already pointed to a reduction in CO2 emissions being required of "at least 50 per cent by 2050" and that the greatest effort was needed by the big, industrialised countries.

The communiqué was backed Friends of the Earth executive director Tony Juniper, who said it was a significant moment in the fight against climate change. "The shift to a low-carbon economy is not only an environmental imperative but also an unprecedented economic and social opportunity.

"Scaling up clean energy systems and using energy more efficiently could not only slash emissions, but help to improve quality of life for billions and create millions of jobs," he said.

But he warned the time available to make changes was "strictly limited" and a strong outcome was needed from the UN talks starting next week in Bali.

James Smith, chairman of Shell UK, said: "The message is principally one of support for international leaders that business wants to support what they're doing in efforts on climate change.

"It's also that these businesses get it, they see the threat of climate change and they know that action needs to be taken, and that it makes economic sense to tackle climate change.

"They know tackling climate change is the pro-growth strategy and ignoring it will lead to decline."

He said companies wanted to see support for new technology, carbon markets, a price on carbon and regulation and standards on energy and other sectors - with details developed in co-ordination with business once the overall framework had been set by governments.

Alain Grisay, chief executive of F&C Asset Management said his company, which manages investments, believed Sir Nicholas Stern's review on the economics of climate change that inaction would cost more than tackling the problem.

"We also believe it is not just about constraints - the good news is one of development of incentives to develop new technologies.

"By incentivising companies and people who build technologies to move now, we're going to make these companies more competitive, creating new jobs and new job opportunities," he said.

The Bali communiqué is led by the Prince of Wales UK and EU Corporate Leaders Groups, which were developed by the University of Cambridge's Programme for Industry under Charles's Business and the Environment Programme.