There is a troubling global reality steadily harming the planet, yet it remains alarmingly under-addressed: 1% of the world's companies are responsible for 42% of greenhouse gas emissions, yet they are not held accountable. This stark statistic highlighted by G20 sherpa, Amitabh Kant, at a recent roundtable throws light on the growing need for transparency and market-driven penalties for environmental damage caused by corporations.
Kant points out that the lack of penalisation stems from inadequate data accessibility and use. “The challenge really is that 1% of the companies across the world today are responsible for 42% of the greenhouse gas emissions,” he says. While data on emissions exists, it remains buried in data dumps, preventing effective identification and accountability.
Many experts suggest that the financial markets, rather than governments, should be the force driving change. Kant proposes that independent rating systems, akin to country ratings, could be developed to expose the worst corporate polluters. "If ratings are done and say that these are the 1% of the global companies responsible for 42% of the greenhouse gas emissions, the market would penalise them," he adds. This would potentially push companies to take corrective actions to reduce their emissions.
These discussions, made against the backdrop of India's G20 presidency, hold even greater relevance, where green development took center stage. The G20 presidencies of Brazil in 2024 and South Africa in 2025 offer a crucial window to build on the Indian Presidency’s focus on climate finance and elevate the Global South’s climate priorities.
Notably, India has led the push for tripling renewable energy, doubling energy efficiency, and advancing green initiatives such as green nitrogen and biofuel alliances. These initiatives, says Kant, have laid the groundwork for global climate agreements, including COP's renewable energy targets.
The disconnect
The climate crisis remains a critical global issue, but the disconnect between climate finance and emissions reductions persists. Citing the NK Singh-Larry Summers report, Kant emphasises the need for $3 trillion in funding to address climate challenges and $1.2 trillion for sustainable development goals (SDGs), with $1.8 trillion required for climate finance alone.
However, the global political and economic landscape complicates efforts to mobilise this funding. The Russia-Ukraine war, escalating trade protectionism, and rising tariffs on green technology imports are hampering progress. The recent imposition of duties by the U.S. and Europe on electric vehicles and solar panels, which Kant warns could stifle the transition to clean energy. “America has imposed 100% duties on import of electric vehicles from China , 50% on solar, and Europe has just put 45% duties on imports,” he says.
But as the world grapples with these challenges, Kant says the need for India is to continue driving its green agenda, despite the global headwinds.
