2024 marks the year of a conundrum on government continuity, which is imperative for building an economy that can operate on low or zero carbon. And to ensure we achieve a fair and equitable economy, we need smart public policy: Rachel Kyte, Visiting Professor of Practice, Blavatnik School of Government, University of Oxford

Temperatures are rising and as per a recent report by the World Economic Forum (WEF), the world has already seen an increase of 1.48 degrees while the aim is to limit it to 1.5 degrees. Countries and companies are trying to reduce their greenhouse gas emissions and achieve their net-zero targets, but the pace of transition needs to be ramped up. Highlighting the pressing situation, John F. Kerry, Special Presidential Envoy for Climate, National Security Council, in his opening remarks highlighted, “We all need to be reminded that we are dangerously close to the precipice of the tipping points that we have been warned about, of climate chaos”.

About the First Movers Coalition

On the second day of the WEF Annual Meeting in Davos, members of the First Movers Coalition (FMC), formed at COP26 in Glasgow in 2021, came together to discuss the efforts they have been taking to ramp up green and climate technologies and what challenges they are facing currently in scaling up the production and that too at a faster pace.

The coalition members are leveraging their collective purchasing power to scale the emerging technologies that will decarbonize these heavy-emitting sectors such as shipping, trucking, aviation, steel, aluminium, cement, and concrete. With over 120 purchasing commitments, the FMC has become the world’s largest private sector demand signal for industrial decarbonization technologies. The coalition members are now moving from commitments to action by collaborating with fellow members and global partners to invest in and advance climate technologies. The Coalition has garnered an unprecedented USD 16 billion in aggregate demand for emerging climate technologies.

Value Chain Collaboration for Ramping Up the Green Transformation

Collaboration has been seen as the key to achieving sustainability. Firms can create an environment of co-opetition and co-create value by strategically engaging both suppliers and clients in production, research development, design, and planning.

On achieving faster transformation, Takeshi Hashimoto, President and Chief Executive Officer, Mitsui O.S.K Lines, said, “As a shipping company, we are covering multiple segments of shipping with each segment requiring different efforts, i.e., there is no single solution for all segments. We are trying to work with different shipping players and trying to have a dialogue with the government, and international players to ramp up the journey to zero-carbon shipping. Collaboration is required to accelerate actions to meet the goals.

Signifying the power of value chain collaboration, Anna Borg, President and Chief Executive Officer, Vattenfall AB said, “Businesses of tomorrow will run on fossil fuels”, and cited an example of how the members of the FMC are stimulating demand in the marketplace for green technologies and products. “Amazon, an FMC member, is buying trucks from Volvo, another FMC member forging a green pathway and de-risking of scaling of technology.

Speaking from the finance sector, Carlos Torres Villa, Chair, BBVA SA said, “By providing the finances, FMC is helping in closing the loop and de-risking green projects. We need greater collaboration from all players, including the government. From the government’s standpoint, we are only scratching the surface. We need to move All Movers from First Movers”.

Green Business is Good Business

In closing remarks, Kerry pointed out that the companies can adopt green pathways and it is good business. “But if we don’t do it, we’re going to pay much higher premiums, much higher price. Everything will cost more. The economic food chain will be completely disrupted and there will be chaos in the marketplace”.