What's Next for the U.S. after the Paris Climate Agreement?
By Richard Eidlin
By Richard Eidlin
Well
before the final negotiations of the COP21 climate talks in Paris, business was
already making a big difference on the ground. For the first time, superstar
entrepreneurs showed up with plans to fund major initiatives.
Giant companies
sent CEOs to showcase their results in reducing carbon in their own operations.
And entire industries, such as financial services, agriculture and
manufacturing, made new commitments to address climate change.
Attending
the talks as a business leader, I could tell that positive pressure from the
business sector was going to lead to success. The overwhelming message to
government leaders was, "we, the international business community, will
support you if you make a strong deal."
But
of course talk is cheap -- and easy. Now comes the difficult part: turning the
agreement into actions that will actually save the planet.
First,
and easiest, is for companies to make or extend individual commitments to
reduce carbon. Whether by increasing their usage of renewable energy or energy
efficiency, streamlining supply chains -- or even steps as small as offering
mass transit incentives to employees -- companies large and small can take
their own steps to cut carbon emissions.
Over
and over in Paris, we heard how these efforts actually strengthen the bottom
line. We saw many businesses that are committed to doing their part on climate
change -- like Patagonia, which has installed nearly 500 solar panels at its
headquarters.
But
as great as the voluntary efforts are, no one believes they will be enough to
reach the necessary targets. For significant progress, business needs
government to nudge things in the right direction.
For
example, take the Clean Power Plan, the EPA's rules to reduce carbon emissions
from power plants. These rules will significantly cut our greenhouse gases,
which is a major benefit for every industry. The rules provide states with
unprecedented leeway in crafting their own plans, which will result in
technological innovation and job creation.
Unfortunately
some in Congress are trying to block the rules as being bad for business.
That's why during the Paris summit, our business group joined with
Environmental Entrepreneurs (E2) to announce letters calling on Congress not to
derail the talks and get serious about strengthening America's economy.
Most
small business owners agree with us. National, scientific polling found that 64
percent of small business owners support government regulation to cut carbon
pollution from power plants.
In
fact, many business people want even stronger climate policies, such as carbon
pricing.
Major
U.S. brands like Ben & Jerry's and Seventh Generation support putting a
market price on carbon. Many more U.S. companies are signing a business letter
to Congress showing support for a carbon tax. Internationally, even oil
companies are getting behind the idea.
When
I was in Paris, I spoke with an executive of a giant European oil company --
Norwegian oil giant Statoil. As she explained, a carbon tax "provides us
with a clearer path for making mid-term investment decisions.
Whether we invest
in another oil field, or move toward more wind depends in large part on what
the price of CO2 will be." This is using the power of the market to
determine how to power the economy going forward.
The
Paris climate talks resulted in a breakthrough agreement. But it is really just
the beginning. Now we all -- individuals, government and businesses -- need to
do everything we can to turn that talk into action.
For business leaders, that
means not only doing what we can in our business, but it means pushing our
elected officials to do what they need to. Paris proved that business support
can help in making a deal. To turn that deal into reality, business support
will be essential.
Eidlin
is Vice President of Policy and Campaigns at the American Sustainable Business
Council.