Duke plays down NAM carbon spat

US utility attempts to draw line under decision to leave trade group that opposed carbon legislation

By Danny Bradbury

20 May 2009

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Carbon emissions

US utility giant Duke Energy is working hard to play down a split with the National Association of Manufacturers (NAM) after it left the organisation, citing disagreements over NAM's global warming stance.

Interest in the company's split with the NAM – which actually happened in December – was reignited this month, after a Bloomberg journalist picked up on it during an interview with the company.

Duke spokesman Tom Williams argued that the split with the trade group was not solely a result of its opposition to climate change legislation, although he admitted it had played a role.

He cited three reasons for the leaving the group: "First, we were looking at our budgets and working out what to cut. Second, the NAM position on climate was diverging from ours, and third, we're a relatively small player in NAM because we're not a traditional manufacturer."

He added that the aim of the company's lobbying activities was to represent the interests of its customers, "and we think we're doing that better by seeking proactive climate change legislation for our customers".

Hank Cox, a spokesman for the NAM, sought to downplay the split, arguing that the trade group's position on proposed US climate change legislation had not yet been decided. "We were disappointed when Duke withdrew from our membership and are optimistic it will return," he said. "We have not, in fact, taken a position on any specific cap-and-trade proposal yet. Like Duke, we assume there will be some legislation dealing with carbon. Our concern is the same as Duke's – that any legislation be carefully crafted so as not to evoke a surge in energy prices."

Nevertheless, NAM's opposition to climate change legislation seems relatively pronounced, particularly given its recent petition opposing the EPA endangerment finding which ruled carbon emissions represented a threat to human health.

Williams argued that disagreements over global warming would not alone be enough to cause a rift with an organisation as influential as NAM. He pointed out that the company is still a member of the US Chamber of Commerce, which has also taken a strong stance against CO2 regulation.

However, with growing numbers of firms committing to deep carbon emission reductions and new green business groups becoming increasingly influential, the move highlights the fact that more firms are seeking to distance themselves from lobby groups that attempt to block environmental initiatives.

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