There is a narrow political window this year 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.
Climate Provisions in Budget Reconciliation
The $550B in clean energy tax credits and investments passed by the House last year are still in play as part of budget reconciliation (see here and here). Business advocacy remains key for these provisions which would unlock investments in clean energy, clean transportation, and U.S. manufacturing at the scale needed to drive lasting change.
Budget reconciliation may be our last, best shot to enact impactful climate legislation at the federal level for years to come.
Here’s what you can do to make your voice heard.
- Reach out directly to Senate leadership and your members of Congress to tell them you want to see the clean energy investments signed into law ASAP.
- Call the White House and ask them to prioritize this legislation and to help broker a deal
- Publicly support the clean energy investments via a company statement, op-ed, letter to the editor, or other prominent communication.