What do trade associations have to do with climate?

According to the World Resources Institute (WRI):⁸

“Trade associations are a main conduit of corporate political influence in the United States, and often wield this power to undermine and, in some cases, outright block or reverse climate legislation.”

This conclusion is supported by the research of InfluenceMap, a global think tank that tracks and scores how companies engage with climate policy. They monitor 150 global industry associations and consistently find that these groups use their influence to block climate policy. This behavior has started to come under increased scrutiny from politicians,⁹ investors,¹⁰ and civil society.¹¹

It is no surprise that trade associations representing the oil and gas sector lobby the most intensely against climate regulation, which they view as a threat to their business. In fact, the American Petroleum Institute (API) received a failing grade from InfluenceMap because of their strategic efforts to block climate regulation and legislation.¹²

However fossil fuel companies also influence the lobbying agenda of powerful cross sector trade associations like the U.S. Chamber of Commerce and the Business Roundtable (BRT). Since these groups represent a broader group of companies they typically argue that climate policies negatively impact economic growth. For example, the BRT voiced support for some of the climate policies in the Build Back Better Act (the bill that preceded the enactment of the Inflation Reduction Act), but stated that the “significant corporate tax increases in the BBB framework would seriously undermine US growth, competitiveness and jobs”. It was reported that some CEO members, including chair Mary Barra, are working to change the BRT from the inside, but it remains to be seen whether their efforts are successful.¹³