As the Paris Agreement marks its 10th anniversary in 2025, global climate action has entered a pivotal transitional phase. Data reveals that clean energy investments surpassed $2 trillion in 2024, significantly outpacing fossil fuel investments, while over 11,000 companies have adopted or committed to science-based carbon targets, representing 40% of global market capitalization. Against this backdrop, Pim Valdre, Head of Nature and Climate at the World Economic Forum, shared insights with SINA Corp on how market forces are reshaping climate action and the evolving pathways for corporate decarbonization.

**Economic and Climate Synergies in Corporate Action** Pim highlighted a fundamental shift in the roles of policy and markets since 2015. While policy support initially led the charge, market forces have now accelerated engagement. A notable example is the CEO Climate Leaders Alliance—a coalition of 130 CEOs across 12 industries with combined revenues of $4 trillion—whose members reduced absolute emissions by 12% while achieving 20% revenue growth from 2019 to 2023. This demonstrates that ambitious climate goals can coexist with robust financial performance.

Asia, particularly China, is emerging as a leader in adopting science-based targets. Companies here are not only setting targets but also driving supply chain-wide decarbonization, balancing emissions cuts with market competitiveness. Pim emphasized that leading firms integrate sustainability into core business strategies, recognizing benefits like energy efficiency, risk mitigation (e.g., extreme weather disruptions), and growing demand for green products.

**Tackling Scope 3 Emissions: Supplier Engagement** Scope 3 emissions, accounting for 75–85% of corporate footprints, require tailored approaches for upstream (e.g., raw materials) and downstream (e.g., product use) activities. The Alliance’s sector-specific playbooks guide companies in collaborating with suppliers, particularly in emerging markets where renewable energy access remains a barrier. For instance, H&M’s financing initiatives in Bangladesh help suppliers transition from fossil fuels. Pim noted that multinationals can accelerate this shift by supporting grid upgrades and policy reforms in these regions.

**Clean Energy Growth and Regional Disparities** 2024’s record $2 trillion clean energy investment underscores its economic viability. China, a hub for renewable tech manufacturing, faces solar sector consolidation due to oversupply but is poised to expand grid infrastructure. Meanwhile, disparities persist: mature technologies like solar and wind enjoy low "green premiums," while hydrogen and sustainable aviation fuels lag due to policy and scalability challenges. Europe and China lead in deploying supportive policies and risk-sharing mechanisms.

**Four Emerging Climate Action Trends** 1. **Regional Collaboration**: ASEAN and the EU will drive localized implementation of climate goals. 2. **Climate Resilience**: Investments in adaptive infrastructure (e.g., flood barriers) will rise. 3. **Hard-to-Abate Sectors**: Industries like aviation and steel (30% of emissions) need value-chain partnerships to share green premium costs. 4. **Nature-Climate Integration**: COP30’s focus on systemic solutions (e.g., forests) signals a unified approach to environmental governance.

*Note: GHG emissions are categorized into Scope 1 (direct), Scope 2 (indirect from energy), and Scope 3 (value-chain).*

SINA Corp’s ESG Center promotes sustainable investing and corporate best practices, offering tools like ESG indices and leadership forums to advance China’s ESG standards.