Low carbon emission no longer a constraint, but an opportunity

AFTER 20 years of negotiations, the 21st United Nations Climate Change Conference (COP21) in Paris has been a turning point that puts carbon emission reduction at the core of business strategy. Regardless of the details included in the final Paris climate agreement, it marks a disruption in the international climate debate and has widespread impact on businesses which will need to transition to a low carbon economy.

In accelerating concerted action towards a low carbon society and economy, business leaders are now at the forefront in calling for climate policy. An open letter from the World Economic Forum - representing chief executives from 79 companies and 20 economic sectors - and the Carbon Pricing Leadership Coalition formed from a groundswell of support for carbon pricing, both demonstrate how businesses are urging governments to act.

The UN-Accenture CEO study commissioned in the run-up to COP21 gave a clear voice to global business leaders' call for clarity and action from governments and negotiators in Paris. Seventy-four per cent of CEOs saw an agreement in Paris as essential to stimulating further investment and unlocking the potential of the private sector to provide the solutions required to hold global average temperature rises to under two deg C by the end of the century.