Top Chief Executive Officers (CEOs) emphasize the necessity of regulatory frameworks to propel climate solutions.
Ester Baiget, CEO of Novozymes, noted that impediments often hinder companies from creating sustainable solutions and emphasized removing these barriers.
Baiget emphasized the need for increased collaboration with authorities to establish a framework that enables more expedited and daring progress.
This statement was made during a panel on “IOT: Powering the digital economy” moderated by CNBC’s Steve Sedgwick at the World Economic Forum in Davos, Switzerland.
She highlighted an existing regulation rooted in the past, noting that within her sector, the process of registering a new microbe to replace fertilizers can extend up to six years.
Proposed as a substitute to diminish reliance on chemical fertilizers, microbes aim to mitigate greenhouse gas emissions. Despite their potential, regulatory clearance is required before introducing these new microbial fertilizers.
CEO Kadri Flags Sustainability Regulation Challenges
In the recent panel discussion, Ilham Kadri, CEO of Syensqo, a chemical science company, underscored the challenges associated with the existing sustainability regulations.
Kadri emphasized that achieving carbon neutrality is a challenging and expensive journey, suggesting a need for reevaluating regulations, especially in regions like Europe.
She also mentioned a “lack of competitiveness in Europe,” pointing to the challenges encountered within her industry.
Kadri highlighted a significant issue concerning the prolonged permit approval process for cross-country solutions. For instance, Synseqo collaborated with Veolia in using waste as an alternative fuel to coal.
However, Kadri noted that the permit process for each solution took two to three years, describing it as “insane” in Europe and other regions.
She pointed out that the complexity of regulatory environments was a challenge, and CEOs’ average tenure of less than four years meant they might not witness the fruition of permits obtained after several years.
Baiget added that businesses hadn’t actively engaged with politicians to communicate the challenges posed by such regulations, stating, “Companies have a responsibility to proactively address issues instead of just complaining.”
