Economy Backs Renewable Energies

The economy is often branded as an obstacle to climate protection. However, according to a global survey, 97 percent of executives at medium-sized and large companies are in favor of moving away from fossil fuels. Is this a turning point?

In numerous countries, politicians are currently backtracking on climate protection and sustainability. For example, US President Trump wants to boost investment in fossil fuels, as reported by Deutschlandfunk. Trump also ended the US membership in the Paris Climate Agreement.

Governments Ignore Deadlines for New Climate Plans

Their members were supposed to submit their new climate plans by February 2025. According to the climate portal “Carbon Brief,” very few have done so—not even the EU. In Germany, meanwhile, the Council of Experts criticizes the new CDU-SPD coalition for neglecting long-term climate goals. Katherina Reiche, the new Minister for Economic Affairs, also stands out in a negative light. She criticizes the costs of the energy transition and indirectly questions the goal of becoming climate neutral by 2045.

Executives Support the Coal Phase-Out

These setbacks are not in the interests of the economy, as shown by the results of the survey “Powering up: Business perspectives on shifting to renewable electricity” commissioned by the climate protection initiatives E3G, Beyond Fossil Fuels, and We Mean Business Coalition. The findings show that the vast majority of executives (globally: 97 percent; Germany: 98 percent) from the world's most important economies and emerging markets support the switch to renewable energies.

Support for phasing out coal within the next ten years is particularly high in Indonesia, Brazil, Germany, Poland, and India. More than three-quarters of those surveyed support the transition to an electricity system based on renewable energies by 2035 at the latest.

Relocation as a Means of Exerting Pressure

According to the survey, the vast majority of executives are not waiting for governments to carry out the transformation for them: 93 percent are considering investing in their own facilities to use renewable energy locally. Half plan to do so within the next five years. 71 percent are also optimistic that renewable energies will account for the majority of their electricity consumption within the next ten years. Four out of ten respondents even expect this to happen within five years.

Despite their own initiatives, however, the respondents do not absolve their governments of responsibility. The majority of company representatives say they will relocate if politicians fail to act.

Renewable Energies bring Economic Benefits

The reasons for companies taking the lead are complex. The common denominator is that the economic benefits of switching to renewable energies are now widely recognized.

The most important findings at a glance:

• Competitiveness: Half of business leaders say they will relocate their operations (52 percent) and supply chains (49 percent) to markets with better access to renewable energy within five years.
• Energy security: Three-quarters of business leaders surveyed worldwide associate renewable energy with greater energy security. For example, 78 percent of German executives believe that an accelerated transition to renewable energies will reduce Germany's dependence on volatile energy imports.
• Economic growth and employment: 77 percent associate renewable energies with economic growth, while 75 percent consider them key to job creation.
• Sustainability: Two-thirds of executives intend to phase out coal and replace it with renewable energies, grids, and storage without new gas infrastructure.
• Policy failure: Respondents feel that many governments lack clear transition plans.

Diverse Demands from Companies on Policymakers

For example, business leaders in Japan report investment uncertainty due to the unclear role of renewable energies in the country's climate plans and energy mix. In Canada, where communities are threatened by mine closures, companies are pushing for workforce retraining and targeted incentives.

Executives in Germany are calling above all for faster planning and investment in the expansion and modernization of power grids, subsidies to promote consumer demand for solar modules and renewable power generation, and education and retraining programs for jobs in the renewable energy sector.

Contrary to many political commentaries, the global survey shows that 80 percent of business leaders strongly support a rapid transition to renewable energy systems in the next decade. This strong support for the economic and security benefits of renewable energy should give governments the confidence to set ambitious national climate targets aligned with the 1.5°C goal in the run-up to COP30." Nick Mabey, CEO, E3G

This is a partly automated translation of this german article.