Get to know our members and what being part of the ETC means to them. We are pleased to share an exclusive interview with María Mendiluce, CEO of the We Mean Business Coalition.
What drew your organisation to join the ETC?
We Mean Business Coalition aims to catalyse business and policy action to halve global emissions by 2030 and accelerate an inclusive transition to a global net-zero economy by mid-century. This approach has already made a significant impact, with more than 15,000 companies within our network actively pursuing climate commitments.
ETC’s data, analysis, tools, and recommendations have been instrumental in shaping our understanding of the trajectory of the system, the necessary solutions and policies, and the urgency with which we must act. Through this work, ETC has demonstrated that the transition to net-zero emissions is not only technically viable but also economically sound, particularly in the hard-to-abate sectors. This narrative has been crucial in countering the persistent scepticism regarding the feasibility and cost of the transition.
We are proud to contribute to and shape this work as a member of ETC and we value the collaborative relationship with ETC and its expertise. Notably, the organisation’s insights supported the development of the Fossil to Clean Principles, as part of our Fossil to Clean Campaign.
What do you see as the ETC’s most impactful achievement since you’ve been a Commissioner/Representative?
The co-founding of the Mission Possible Partnership with We Mean Business Coalition, the Rocky Mountain Institute, and the World Economic Forum has been instrumental in progressing ambition and action around net zero transformation in the hard-to-abate sectors.
By providing sector-specific strategies with clear targets and indicators, the Partnership has garnered industry buy-in through the creation of these roadmaps.
Furthermore, MPP serves as a platform for bringing together stakeholders across the entire value chain. It aligns them on the necessary steps and timelines required to decarbonise the hard-to-abate sectors, which currently contribute to 30% of energy-related emissions.
What are the key milestones you see on the road to net-zero, and why?
Reaching net-zero by 2050 means taking urgent action on the primary driver of global heating: burning fossil fuels. Despite clean energy growth, emissions continue to rise. Clean technologies must continue to scale and also displace fossil fuels, leading to a peak, followed by a rapid decline in fossil fuel demand. This issue is at the heart of ETC’s Fossil Fuels in Transition report and also the driver of WMBC’s Fossil to Clean Campaign.
While COP28 and the G7 have both signaled a transition from fossil fuels, implementation is the challenge. Bold government leadership is crucial. This means translating international signals into clear national policies with timelines for phasing out fossil fuels and scaling renewables and energy efficiency in new NDCs. It also means putting in place policies at the national and sub-national level that will create the enabling environment for NDCs to thrive and that unblock business action. This will give businesses looking to accelerate away from fossil fuels the confidence to make investments in low carbon systems and technology.
What do you see as the biggest obstacle on the journey to net-zero?
I see two key ones- one systemic, one sectoral. First, one of the biggest systemic challenges to achieving net zero is ensuring finance is available to help developing countries transition, particularly in the context of moving from fossil fuels to clean energy. According to ETC analysis, approximately $3.5 trillion per year of capital investment is required on average until 2050 globally to develop a net-zero economy. This entails a four-fold increase in investment by 2030 in some developing nations. ETC also estimates that at least $300 billion of concessional/grant payments are needed per year by 2030 in middle and low income countries. Developed nations should provide support to global south countries, aiding them in diversifying energy systems and developing 1.5°C-aligned economic pathways, without exacerbating sovereign debt burdens, to promote equitable and sustainable progress.
From a sectoral point of view, clean power is vital for halving emissions by 2030 and decarbonizing other sectors. But I see three key barriers holding it back. First, as ETC’s report on streamlining permitting and planning showed, there is a need to deal with the permitting and planning challenges currently holding back the deployment of renewables. Second, we also need to increase the investment in and build out of grid infrastructure as well as better utilize the grid we already have. And finally, we need more storage and flexibility options, to help with balancing and grid congestion but also to displace fossil gas.
What is the one necessary change you feel most personally passionate about in the transition journey?
To achieve our climate goals and transition from fossil fuels to clean energy, businesses of all sizes must be part of the journey. Small and medium-sized enterprises represent 90% of global businesses, employ 70% of the world’s workforce, and contribute over 50% of global GDP.
Despite their pivotal role, SMEs encounter barriers to climate action, including inadequate policies and government support, limited funding, insufficient data on current emissions, and a lack of skills and knowledge. Overcoming these obstacles is essential to harnessing the full potential of SMEs in driving the clean energy transition.