Climate policy proposals: Creating four enablers for business transformation

Japanese

In 2024, the global average temperature rose more than 1.5 degrees Celsius (°C) above pre-industrial levels. The need for global climate action is growing, yet the state-centred framework for international cooperation is increasingly fragile, making business-led transformation more important than ever. Driving corporate behaviour change, however, involves numerous challenges that individual companies cannot resolve on their own—from designing effective regulations and incentives to ensuring a fair and equitable trade environment.

Accordingly, PwC Intelligence, the think tank division of PwC Consulting LLC, drawing on their individual perspectives, has released policy proposals aimed at enabling companies to implement decarbonisation. After analysing the relationship between the realities companies face and the transformation required (Figure 1), the proposals identifies ‘enablers’ that would make it possible for companies and industries to undertake the changes needed to achieve decarbonisation. Climate change is a complex issue that affects every aspect of human activity, and we believe it is a challenge that we should proactively address.

Figure 1: Relationships between the realities facing businesses and corporate transformation

Specifically, we present four enablers: “Developing a decarbonised economic sphere,” “Industrial transformation driven by sustainable demand,” “Contribution to emission reduction with AI-enabled manufacturing,” and “Loss and damage monitoring and adaptation measures” (Figure 2). In addition, we outline the role that professional services firms should play in climate action.

Figure 2: Four enablers

Four enabler	Specific proposals
Developing a decarbonised economic sphere	Consider participating in OCCCM and the IFCCT, both of which were established at COP30. Make a suggestion to the international community to maintain a fair and equitable trade environment in relation to rare earths and metals that are needed to support the global distribution and manufacturing of low-carbon products. Encourage Japanese businesses to expand their operations overseas in sectors where they can contribute to sustainable economic development in emerging economies.
Industrial transformation driven by sustainable demand	Map and expand a comprehensive set of schemes and programs designed to encourage green consumption, together with measures to promote well-being in food, clothing and shelter. Enhance consumer protection by, for example, combatting greenwashing. Start longer-term discussions on subsidy schemes and taxation arrangements for fossil fuels with attention given to implications for the macroeconomy and economic security.
Contribution to emission reduction with AI-enabled manufacturing	Put arrangements in place that support domestic businesses in securing AI talent from abroad. Give tax breaks and other incentives to businesses that reskill domestic engineers. Increase funds for AI integration research at science and engineering faculties at universities and offer more posts for such research. Accelerate the development of international standards on estimating GHG emissions associated with the use of AI.
Loss and damage monitoring and adaptation measures	Develop an information platform, not only on a national scale, but also on a global scale, that is aimed at assessing and monitoring the physical risks of climate change by region. Conduct studies to develop and promote insurance and financial schemes that encourage climate action. Work with the Disaster Management Agency (to be established in fiscal 2026) and local governments to draw up adaptation plans and to enhance their effectiveness.

Source: Compiled by the authors

To put these four enablers, along with the three specific proposals for each, into practice, we will need further in-depth discussion with a diverse range of stakeholders. We will continue to leverage PwC’s track record and capabilities, working with both private-sector companies and policymakers, to provide support for effective climate change measures.