My expertise is working with companies to match their political activity with ambitious climate action. I spent the last 4 years at the World Resources Institute and just started my own consulting outfit. I’m excited to welcome you to Connect the Dots, a new monthly newsletter from ClimateVoice!
This newsletter will essentially act as a Venn diagram of corporate lobbying and climate change. What does that mean? We’re going to be looking at how companies can use their political influence to advance policy that benefits all of their stakeholders, not only their bottom line.
Every month we’ll cover the basics of how and why companies influence policy making, how this connects to climate, best practices from leading businesses, and how you can personally make a difference.
Your involvement is urgently needed: the UN’s 2023 report on climate calls for fast action across all sectors, including corporate engagement and public policy (for a deeper dive, read on). It gives us a road map to meet this historic challenge, and shows us why each of us must learn and do more now:
© The Intergovernmental Panel on Climate Change
Image SPM.1 c) from Synthesis Report of the IPCC Sixth Assessment Report
Action Items
Awareness is key to building action, so this month we’re asking you to share this newsletter with other climate-concerned colleagues. Bonus points if you share with someone at another company!
The Big Picture
How Policy Turbo-Charges Climate Progress
Climate change is upon us. Corporate leadership on innovation, R&D, private sector finance, and operational work helps move the needle. But to address this challenge at the speed required we need public policy to accelerate decarbonization at scale.
Not only does bold public policy unlock billions of dollars to spur innovation economy-wide, but it also helps set standards and center justice in the transition. It’s not an “either-or,” in terms of free market solutions vs. public policy – it’s a “yes, and.” Public policy accelerates what companies are already doing through tax credits for electric vehicles, rules limiting greenhouse gas emissions from power plants, and directives on funding for disadvantaged communities.
Many individuals and interest groups exert influence over how (and whether) these policies take shape – and in the United States, companies have a particularly large impact. Right now, the loudest and most powerful corporate voices often oppose climate action. It’s because of this that we need pro-climate companies to step up and loudly advocate for ambitious, science-based climate policy.
How Companies Influence Policy
Business influence on policy happens in many different ways. This happens directly, with actions like lobbying and campaign donations, and indirectly, such as joining trade associations, making public statements, and funding research. We’ll be diving deeper into these topics over the next few months.
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All of these pathways have an impact. It’s important that companies use their entire influence to support climate action. If a company is speaking out of both sides of its metaphorical mouth, then any positive actions are canceled out.
Disclaimer: Some people think our political system would be better with less corporate influence. The reality is that as long as climate obstructionists have such powerful influence, climate advocates risk the planet if they unilaterally disarm. Therefore, we’re focusing on how the system works now, and using every tool at our disposal to combat the climate crisis.
The Nitty Gritty
The Inflation Reduction Act (IRA) in Motion
The IRA became law in August 2022, channeling $369 billion towards climate action. This is a huge deal! Before this, the U.S. hadn’t passed any significant climate policy since the 90’s.
The bill has many components, including such things as investments in vehicle electrification, methane reduction, tax credits for clean energy, and conservation funding.
In 2021, the U.S. made a commitment to reduce our greenhouse gas emissions by 50-52% (from 2005 levels) by 2030. This is known as our nationally determined contribution (NDC) and is part of our participation in the UN Paris Agreement.
Analysis shows that the U.S. is now on track to achieve 32-42% emissions reduction by 2030. We’re moving in the right direction, but more is needed to hit that 50%.
Looking Ahead – the biggest priority is to make sure that all of the $369 billion gets out the door and that further regulatory and state action comes to pass.
Companies’ Role → Passing this bill was a major win for climate – and a key test of corporate commitment. Some companies expressed support for its passage, and this backing was critical. But many others lobbied against it and allowed their trade associations, like the powerful U.S. Chamber of Commerce and National Association of Manufacturers, to spend millions opposing the legislation.
For a Deeper Dive
Latest Climate Report Card
Every year a group of the world’s best and brightest scientists, called the Intergovernmental Panel on Climate Change (IPCC), come together to produce a report card on climate change. The latest came out in March and confirms that we are way off track in our goal to limit warming to 1.5°C. Like, waaaaaaayyyy off track.
If it’s not clear from the graph, we need emissions to plunge. Immediately.
The report is yet another reminder that we have no time to waste. The public policies we have in place are not enough, and companies must step up NOW and use their political influence to secure more ambitious climate action.
© The Intergovernmental Panel on Climate Change
Image SPM.5 a) from Synthesis Report of the IPCC Sixth Assessment Report