European climate solutions are being hindered by outdated systems, according to top business leaders.

• Ester Baiget, CEO of Novozymes, stated on a Davos panel that working more closely with authorities is necessary to establish a framework that allows for bolder and faster movement.
• Syensqo CEO Ilham Kadri stated the need for a "rethink" on sustainability regulation in Europe.

Top industry CEOs told CNBC that regulatory frameworks are necessary to drive the progress and development of innovative solutions that tackle climate change and help the environment, enabling companies to make bolder steps forward.

Novozymes CEO Ester Baiget stated that "obstacles" hinder companies from producing sustainable solutions, which must be overcome.

Baiget stated on a panel moderated by CNBC's Steve Sedgwick at the World Economic Forum in Davos, Switzerland that we must collaborate more with authorities to establish a framework that enables us to move bolder and faster.

She pointed out that in her sector, it can take six years to register a new microbe to replace fertilizers, and that this is based on past regulations.

Chemical fertilizers are a significant contributor to greenhouse gas emissions and waterway damage. As an alternative, microbes have been proposed to reduce the use of chemical fertilizers. However, new microbial fertilizers must undergo regulatory approval before being marketed.

Rethinking regulation

In the same panel discussion last week, Ilham Kadri, CEO of a chemical science company, discussed the challenges with current sustainability regulations.

The road to carbon neutrality is long, costly, and not easy. We need to rethink regulation in regions like Europe, she said.

Kadri mentioned the challenges faced by her sector due to a "lack of competitiveness in Europe."

Kadri mentioned that obtaining permits for solutions implemented in different countries took a considerable amount of time, as she pointed out with Synseqo's collaboration with a French utility company in waste management to utilize rubbish as an alternative fuel to coal.

In Europe and certain regions, the permit process for these solutions can take two to three years, as she explained.

"These regulatory environments are too complicated, Kadri stated. With an average CEO tenure of less than four years, if a permit takes five years to come through, CEOs don't even get to see it happen," she added.

Politicians were not informed by businesses about the problems they faced with such regulation, as stated by Baiget.

Therefore, I believe that companies have a responsibility to acknowledge that they did not actively participate in the issue, but instead allowed it to continue and expressed complaints.