European businesses are willing but not equipped for a low carbon transition.
That’s according to a report by Climate-KIC which analyses if European business leaders have developed innovative technologies to turn climate change from a threat into an opportunity.
It stated they have prepared strategies to respond to climate change without a focus on innovation but they are likely to be ineffective for a 2°C trajectory.
The ‘Sparking an Innovation Step Change’, launched at COP21, added 63% of business leaders know the regulatory and physical risks of climate change and believe tackling it would drive growth as demand for environmental products and services increases.
However, 29% believe there is a large amount of scope to respond to climate change using innovative technologies as well as reduce resource consumption and carbon emissions (14%).
Bertrand van Ee, Chief Executive at Climate-KIC said: “Innovation has played a critical role in most socioeconomic revolutions. Climate change is no exception. The science shows we need to reconfigure the economy in line with the 2°C trajectory and innovation must sit at the centre of the transition.
“Many businesses seem to have forgotten how to innovate or are delaying innovation until they get a policy silver bullet. That strategy doesn’t reflect business’ understanding of the risks of climate change or the realistic timelines to scale up radical innovations to turn the threat into an opportunity.”