With hundreds of businesses pursuing bold climate change solutions and countries updating national climate plans in advance of 2020, the opportunity for greater ambition abounds.

More and more businesses are seeing opportunity in the zero-carbon economy, and taking action on climate change. Increasing commercial demand. Bold commitments to zero carbon electric power, zero carbon vehicle fleets, and zero deforestation. Increased business investments in climate solutions. Each sends a strong signal from business to government in support of ambitious climate policy.

Governments must use this as a strong vote of confidence and advance ambitious policies that provide companies with the clarity and confidence they need to unlock further investments in climate solutions.

This is the “ambition loop”—a positive feedback loop in which bold government policies and private sector leadership reinforce each other, and together take climate action to the next level.

“Ambition loops” support bolder climate action from business and governments

Evidence of ambition loops can be found around the world. The Ambition Loop paper highlights examples where, building on business leadership, strong national policy measures have spurred additional investment and action by businesses, accelerating the transition to a prosperous zero carbon economy.

The paper highlights how:

• Bold renewable energy targets and consistent financing terms in India helped support a significant increase in open access solar energy projects.  

• A coalition of companies in Europe helped push for clarity in rules for power purchase agreements (PPAs) so they could increase their renewable energy investments.

• Strong mandates and incentives for electric vehicles in Norway and California helped them increase electric vehicle sales.  

• Clear financing helped rapidly expand fleets contributed to a rapidly expanding fleet of electric buses in China.  

• Business and government commitments to deforestation-free supply chains helped increase proportion of sustainable palm oil to 90 percent in the United Kingdom.

The research in The Ambition Loop illustrates how policies that provide clarity and confidence have been essential to governments’ efforts to accelerate action in electric power, transportation and forest and land management.

Government leaders can learn from the examples in this paper as they formulate their domestic climate and energy policies,  take steps to strengthen their national climate commitments under the Paris Agreement and develop long-term climate strategies—all of which are critical to guide private sector investments.

The Ambition Loop and What to Expect at the COP24 Summit - Webinar