There is a narrow political window to enact public policies that meaningfully address the climate crisis, and the need for business leadership is urgent.
Companies and investors have a vital role to play in advancing the public policies needed to meet both the U.S. Nationally Determined Contribution (NDC) and their own climate goals and targets. Now is the time for every company to make climate a top advocacy priority – on par with tax or trade or any other core business issue – and drive that advocacy from the C-suite.
The following are top climate policy priorities for corporate advocacy in 2022, as agreed by the NGOs that endorse the AAA Framework for Corporate Climate Leadership:
- Decarbonize electricity
- Decarbonize transportation
- Decarbonize industry
- Limit methane emissions
- Advance nature-based climate solutions
- Enact an economy-wide carbon price
- Manage climate risk
In addition to being critical to meet the NDC, all of these policy priorities will drive economic recovery, create well-paid jobs in the United States and boost U.S. competitiveness. They can and must also be designed to promote environmental justice and economic equity, by reducing climate and air pollution in overburdened communities and by ensuring a just transition for fossil fuel workers.
This document provides the rationale for each priority, key policies to support and timeline for business engagement. Policies of particular relevance to certain sectors are noted accordingly; all are relevant to investors seeking to reduce climate risk and improve ESG performance in their portfolio companies.
Inflation Reduction Act
On August 16, President Biden signed into law the largest package of climate investments in U.S. history. The Inflation Reduction Act (IRA) provides $369 billion in funding to tackle climate change, including nearly $200 billion in incentives to ramp up solar, wind, energy storage and energy efficiency; tax credits to accelerate adoption of electric vehicles; a nationwide program to reduce methane emissions; $21 billion for climate-friendly agriculture and $2.6 billion to make coastal regions more resilient to extreme weather. Together, these measures will reduce climate risk and help businesses meet their climate and clean energy goals.
Passing the IRA was the first step: now we need robust uptake of its provisions to fully realize the law’s environmental and economic benefits. With the implementation process ramping up now, we want to hear from you about the opportunities and challenges you see in accessing IRA incentives and investments.
Here’s what you can do:
- Thank Senators and Members of Congress who voted for the Inflation Reduction Act.
- Engage federal and state policymakers to ensure IRA implementation is efficient, effective and equitable.
- Reach out to us to talk about IRA’s business benefits and how you can take advantage of them.