Businesses push for predictable climate policy, WBCSD survey shows

Asia showed weaker push for early tightening as firms prioritise policy certainty.

Businesses are calling for more predictable climate policy to support investment decisions and manage risks, according to the World Business Council for Sustainable Development (WBCSD) and supported by Bain & Company.

The Business Breakthrough Barometer 2026 report found that 85% of business leaders prefer governments to strengthen climate policy in a steady and predictable way rather than delay action.

Only 4% prefer delaying policy changes. Around 37% of respondents say they would accept higher near-term costs if it reduces longer-term disruption.

The report also found regional differences in views. Businesses based in North America show the strongest support for earlier policy strengthening even if it raises short-term costs at 56%. This compares with 20% in East Asia and the Pacific.

Nearly all companies, at 96%, consider transition risks and opportunities when deciding where to invest.

Clear and stable policy and regulation emerged as a key factor as cited by 56% of respondents. This is followed by infrastructure at 33%, market demand at 32%, and access to affordable clean energy at 28%.

The survey also shows differences in policy pathway preferences.

About half or 48% prefer early but predictable policy strengthening with higher near-term costs and reduced physical climate risks; whilst 37% prefer gradual but predictable strengthening with lower near-term costs but higher future risk. Around 4% prefer delay followed by stronger action later. The rest are either unsure or see no difference.

Businesses also highlighted how policy changes in emerging economies are shaping investment decisions.

India is cited for developments including auction-based offtake for electrolytic ammonia, a carbon credit trading scheme, a carbon capture roadmap, and cement emissions intensity targets.

Other examples include China’s focus on protein diversification in its 15th Five-Year Plan, Mexico’s EV-linked investment programme backed by $1.5b, and Ethiopia’s expanded restrictions on internal combustion engine vehicle imports to include conventional trucks.

At the same time, businesses stress the need for policy consistency over time to support investment planning. Long-term policy frameworks are now the top priority for policymakers, selected by 60% of respondents.

Other priorities include supply-side incentives at 35%, investment in clean energy at 30%, demand creation policies at 30%, and carbon pricing mechanisms at 29%. Additional areas include standards harmonisation, infrastructure, innovation support, and international coordination.

Businesses say that implementation gaps remain a key issue. Supply-side incentives are seen as important for scaling early-stage technologies such as hydrogen and low-carbon materials. Demand-side policies, including public procurement and product standards, are seen as important to support market uptake of cleaner products.

Grid expansion and energy system planning are also identified as key constraints, particularly for electrification, electric vehicle charging infrastructure, and industrial decarbonisation.

International cooperation is also highlighted as important. 89% of respondents say cross-border coordination is important for investment, with 59% describing it as extremely important. North America shows the highest level of support at 81%.

Respondents point to coordination on standards and certification as a key area, noting that differences across jurisdictions can increase costs and slow market development.

The report also highlights Asia-relevant findings across sectors. China and India are frequently cited as key markets for clean energy, hydrogen, steel, cement, fertilizers, and transport electrification.

China is highlighted for scaling solar and wind capacity and for including protein diversification in national planning. India is cited for renewable ammonia auctions, green steel pilots, and emissions targets in cement and fertilizers.

China, India, and other Asian economies are also identified as important in agriculture and food system transitions, particularly in regenerative agriculture and protein diversification.

In buildings, China’s updated planning framework and Hong Kong’s green finance policies are noted as supporting signals for decarbonisation efforts.

Businesses also emphasise that public acceptance and workforce engagement remain important for land-based transitions such as agriculture, where long-term relationships with producers and training are seen as key to adoption.

The report was made in partnership with the Breakthrough Agenda, the Climate High-Level Champions, and the Marrakech Partnership for Global Climate Action, and supported by Bain & Company.