Copenhagen: PwC reaction

It's fair to say that the final outcome from Copenhagen was immensely disappointing, although not particularly surprising; we went to Copenhagen knowing that negotiations had ground to a halt in November and no legal deal would be struck. However, some comfort can be taken from the clear statement of political commitment that will underpin policy and regulation in the major economies that are central to climate action.

Where do we go from here? The fact that China, India, Brazil and South Africa added their names to the US-brokered Accord is very important, demonstrating the willingness of leading developing nations to take action on climate change. But, for business, the lack of long and loud regulatory signals and long-term carbon price visibility, critical to ensure major capital investments have real impact, means we are not going to see the scale or speed of investment required to accelerate the transition to a low carbon economy.

However, many businesses and organisations are not prepared to wait and are already taking important steps to improve energy efficiency, drive down carbon emissions and seek out new low-carbon business opportunities in an effort to secure their future. It is sensible housekeeping, of course, but it is also recognition that climate change is becoming an important issue for customers, employees and investors, as well as for policymakers and regulators.

What can policymakers do? There are four immediate priorities. First, they need to deliver some quick wins from the Quick Start funding programme for the least developed and most vulnerable nations to help them respond to climate change. Second, they need to build more ambition into their national plans, due by the end of January. Third, they need to complete unfinished business on forest carbon. And, finally and most importantly, they must learn the lessons of Copenhagen, rebuild bridges at the negotiating table and press on with delivering the legally binding deal that the world demands. Put simply, they need to get over it and get on with it.