Absolutely. Climate Change is solvable if we understand its root cause and address it.

What solutions do we need?

1. We need to cut down fossil fuel subsidies.

2. We need to phase out fossil fuels completely.

3. We need to protect existing trees/forests and plant new trees/regenerate old forests.

4. We need to de-carbonize our personal and commercial activities.

Fossil fuel subsidies

Governments around the world are subsidizing the use of fossil fuels to the extent of 7% of Global GDP approximately, as per IMF. This means, in 2022, USD seven trillion of subsidies were given to us to consume fossil fuels. This needs to go to zero at the earliest. How can we pay people to produce greenhouse gases on the one hand and then try to fight climate change on the other? We have to start paying the full economic cost of fossil fuels we consume.

Phase out fossil fuels completely

This is tougher but is necessary if we are serious about addressing Climate Change. When we know that 75% of Greenhouse gas emissions are produced by fossil fuels, then it is obvious that any serious attempt to solve climate change must hit at this very important root cause. If we don’t address the root cause of a problem, there is no way we can solve it meaningfully.

What do we do to replace them? This needs to be done gradually, which is why we need to ‘phase out.’ We need to ramp up alternative renewable sources of energy quickly, reduce unnecessary energy consumption, and manage this transition well. This is called Just Transition. Since different countries have different economic context, Just Transition also implies differentiated responsibilities for different countries

Protect and restore forests

We need to protect existing forests, trees, vegetation and biodiversity and plant new trees, regenerate the lost forests and biospheres. Trees capture carbon dioxide from the atmosphere and store the carbon in their leaves, stems, and roots, eventually increasing the carbon stored in soil. They are one of nature’s most powerful sequestration engines.

Earth had about six trillion trees historically. However, we have cut down half of them, leaving only about three trillion trees now. More significantly, we have lost entire forests–about 33% of them in the last 10,000 years. A forest is a bigger loss since it is an entire ecosystem including multiple species. We cannot restore all three trillion lost trees, but we can restore up to one trillion trees without encroaching on agricultural land.

This is a game changing piece of the solution as one trillion trees would capture anywhere between 25% to 33% of greenhouse gas emissions resulting from human and industrial activity. In fact, if we switch to regenerative farming using the technique of mixed farming, we can restore even more trees.

So, as we phase out fossil fuels, we should simultaneously plant more trees and regenerate forests so the cumulative effects of these two solutions add up, bringing down the cumulative emissions below the critical threshold needed to avoid catastrophic consequences. One important point to bear in mind as we deploy this solution is that we should conserve and replant native and endangered tree species to achieve this objective. There is a reason why nature chose to locate specific species of trees for a specific climatic region. They are the ones best placed to serve that region.

Decarbonize personal and industrial ecosystems

The more careful and frugal we are in our personal lives, the more responsible we will be as consumers, and the stronger these signals will be picked up by companies. All of this naturally leads companies to invest in decarbonization of their products, processes, and value chains. In decarbonization, prevention is better than cure—every emission avoided is more valuable than an emission released and later sequestered.

The role of businesses in climate action

While governments set policies and individuals make lifestyle changes, businesses remain the most powerful force in driving meaningful climate action. Companies hold the levers of technology, supply chains, and capital, and their decisions directly shape global emissions trajectories.

What can businesses do?

Embed sustainability in corporate strategy: Businesses need to move beyond compliance-based ESG frameworks and make sustainability a core business function. Sustainability should not be an afterthought but rather an opportunity to create competitive advantages.

• Invest in green innovation: There is a massive $100 trillion opportunity in developing climate solutions. Companies that lead in renewable energy, circular economy models, carbon capture, and sustainable materials will define the next industrial revolution. This allows developing countries the opportunity to leapfrog and avoid the carbon intensive growth path that developed economies took.
• Supply chain transformation: Businesses must work towards net-zero supply chains, prioritizing local sourcing, ethical procurement, and circular economy models.
• Internal carbon pricing: Companies should set an internal carbon price that reflects the true cost of emissions, incentivizing reductions across operations.
• Engage with policymakers: Instead of lobbying to maintain the status quo, businesses must advocate for progressive policies that accelerate the clean energy transition.
• Transparency & Accountability: Sustainability commitments need clear, measurable targets with annual reporting that aligns with internationally recognized standards (e.g., GRI, TCFD, or BRSR in India).

The private sector has both the resources and the responsibility to lead this shift. It is no longer just about Corporate Social Responsibility (CSR); it is about business survival and long-term value creation.

The path forward

The most important fact is that it is still possible to course-correct, provided we wake up and act quickly—individually, collectively, and systemically.

Solving Climate Change requires:

• New technologies
• New business models
• New collaboration mechanisms

A significant portion of the solutions we need do not yet exist; they must be created. This calls for massive investment in R&D and innovation—not just for environmental benefits but also for economic growth.

A significant portion of the solutions we need do not yet exist; they must be created. This calls for massive investment in R&D and innovation—not just for environmental benefits but also for economic growth.

In fact, the transition to a sustainable economy presents one of the biggest wealth-creation opportunities of this century. The old economy, reliant on fossil fuels and extractive industries, is rapidly being replaced by a regenerative and low-carbon economy.

This article is an extract from the book “Essence of ESG” authored by Vipul Arora.