COP31: Why it still matters for businesses

COP31 can still improve the business case for climate action by turning broad commitments into practical policy, finance and investment conditions.

• A 2025 UN survey of more than 2,000 CEOs across 128 countries found that 92% considered strong global governance and coordinated policy critical or important to their sustainability agendas.
• Electricity accounts for 23% of global final energy consumption but powers 46% of global GDP, while electricity demand is growing twice as fast as overall energy demand; COP31 aims to raise electricity's share of final energy to 35% by 2035.
• Hard-to-abate sectors such as steel, cement and aviation produce roughly 20% of global emissions, but high green premiums, weak demand and inadequate infrastructure continue to impede investment; COP30 financing supported 12 Brazilian hydrogen projects.
• Global climate finance reached about $2tn in 2024, including $1.9tn for mitigation, versus estimated needs of $7.6tn-$9.6tn through 2050; only $64bn targeted adaptation and international flows to developing countries were $175bn, far below the COP29 target of $1.3tn annually by 2035.
• Physical climate risks could cost S&P Global 1200 companies $1.2tn annually by 2050, while adaptation investment can generate up to $10 of benefits per dollar invested, rising to $19-$43 per dollar in food and beverage.
• The proposed Climate Implementation Bridge could centralise information on adaptation projects' requirements, risks, costs and benefits, making them easier for investors to identify and assess.

Takeaway: COP31 may not deliver a landmark agreement, but progress on grids, green industrial demand, climate finance and investable adaptation projects could improve corporate investment conditions and create opportunities for businesses and investors.