How is WEF's CEO Alliance Pushing for Low-Carbon Business

Corporate leaders have increased their focus on making major investments toward building low-carbon climate-resilient businesses.

The World Economic Forum’s (WEF) Alliance of CEO Climate Leaders is demonstrating how climate initiatives can enhance long-term value for both business and society.

Global events such as the upcoming COP30 summit offer a key moment for business leaders and governments to address the urgent need for a more resilient and environmentally sustainable economy.

The expanding climate economy

The transition to a low-carbon economy presents a major commercial opportunity.

In an open letter to world leaders ahead of the UN Climate Change Conference 2025 (COP30) the WEF’s Alliance of CEO Climate Leaders stressed the commercial viability of the climate economy.

The letter urges businesses and policymakers to scale a historic opportunity for returns, resilience and growth.

Demand for green products and electrification is accelerating across multiple sectors. According to WEF the global market for solar PV, wind turbines, EVs, batteries, electrolysers and heat pumps has nearly quadrupled since 2015 to more than US$700bn a year.

"In addition to the energy transition, low-carbon products in agriculture (e.g. regenerative agriculture) can increase farm profits compared to conventional farming and circular economy models are unlocking new sources of value by boosting resource efficiency and cutting costs in many sectors," says WEF.

By creating scalable, low-cost energy sources, the green transition can strengthen energy security and independence, improve reliability and drive growth. 

It is also a powerful job creator, with potential for a net gain of 10 million jobs globally by 2030.

The Alliance represents US$4tn in revenues and 12 million employees has seen its members reduce aggregate emissions by 12% between 2019 and 2023 while delivering revenue growth of 20%.

Investment in resilience and adaptation

Rising losses from extreme weather events provide a clear business case for investing in adaptation and resilience.

WEF warns that current global policies could be setting the world on a course for a 3°C temperature rise.

“Current global policies are setting the world towards a 3°C trajectory, with warming expected to exceed 2°C as early as 2050 – potentially even more across major land areas,” says WEF.

The potential consequences over the next 25 years include increased droughts heatwaves wildfires and flooding.

WEF suggests: “These impacts will disrupt food security, damage the financial resilience of businesses and governments and endanger livelihoods, communities, healthcare systems and ecosystems.”

For business leaders this translates to direct operational and financial risks.

Investing in the green transition can create scalable low-cost energy sources which can strengthen energy security and independence.

It is also a major job creator with the potential for a net gain of 10 million jobs globally by 2030. WEF states that a “wait-and-see approach is not viable.”

A framework for policy and corporate action

For businesses to invest with confidence, clear and stable policies are required.

"Bold new national climate plans are crucial, from all governments, not only to stop the climate crisis decimating every economy and global supply chains," says Simon Stiell, Executive Secretary, UN Climate Change.

"Done well, they will also be blueprints for much stronger economies, unleashing huge benefits - more jobs and growth, better health, more affordable energy and massive opportunities for businesses.

"That's why leading businesses are urging governments to set stronger climate policies, as the global race to seize the huge benefits heats up. It's increasingly obvious that bold climate action is good for business."

In its letter the Alliance outlined 13 areas where policymakers can encourage growth:

• Maintain a stable, predictable policy environment.
• Mitigate private-sector risk by mobilising large-scale capital.
• Double financing and incentives for breakthrough technologies.
• Transition away from unabated fossil fuels with clear, orderly plans.
• Remove obstacles by streamlining planning and approvals for green projects.
• Support nature-positive investment and policy.
• Build climate-resilient economies and food systems.
• Target and deliver Scope 1 and 2 emissions reductions.
• Create change across industries by addressing Scope 3 emissions.
• Leverage efficiency to cut energy use, costs and emissions.
• Strengthen innovation and digital solutions.
• Create demand signals by pooling corporate commitments.
• Invest in adaptation and resilience by climate-proofing facilities and diversifying supply chains.

The letter concludes: “Achieving this transformation will require deeper collaboration between the public and private sectors, anchored in trust, shared ambition and coordinated cross-regional action around policy, finance and innovation.”