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The CBI's "Climate Change: Everyone's Business" report calls for a shift to a world where carbon becomes a new currency – so that consumers and businesses are rewarded for making the right choices.  In this new world, a significant driver to change is a "full range of public policies" with "right incentives".

The challenge the business world faces is investing in products and services that meet the public's environmental aspirations without knowing whether the Government will incentivise such investments, or even pull the plug.  To give confidence, business leaders would like to see the Government be specific with policies.

The same conclusion is arrived at in the Clifford Chance "Climate Change Survey" which surveyed directors and senior personnel of multi-national organisations around the world.  More than 80% of companies surveyed agree that more regulation is needed to drive business' response to climate change.

This is certainly a curious response from organisations who more often than not would prefer deregulation. But as one respondent said:
"Given the size of the issue, not enough progress will be made until there is a regulatory framework to require everybody to be part of the solution."

Some respondents even suggested that global regulations would help a great deal to cope with the the cost of compliance and to create a level playing field.  But this doesn't mean that they will necessarily wait for regulations.  The majority of companies interviewed believe they are taking steps which go beyond current requirements. 88% of companies considered that they were at least 'a little ahead' of regulations. Some cite a substantial commitment to this as it provides them with an opportunity to influence future regulation.

Why are businesses so motivated to be a part of the climate change challenge?  The Clifford Chance report suggests that reputation is a strong driver, one respondent said:
"There is clearly a potential to lose clients if we are perceived as being a bank that is acting irresponsibly in terms of investments and loans and financing climate-unfriendly industries or businesses."

Others take a more positive view of things, regarding the challenge as an opportunity to create new products.  Almost 60% of respondents in all regions considering developing new products in response to climate change, especially in the UK and US where the response is nearer 70% of companies.

So business leaders seem to be willing, but the CBI report concedes that "changes on the scale needed and at affordable cost will only happen if government, business and consumers work together. Government cannot do the job by itself, nor can business: but together we can use our position as one of the world's great trading nations to secure global action."