New business group to flex muscles in call for tougher climate rules

For years, business groups have been formed to lobby for weaker and weaker legislation, but now a new industry coalition containing several of the world's most high profile brands has been launched with precisely the opposite goals.

The new Business for Innovative Climate and Energy Policy group, or Bicep, was launched yesterday with founding members Levi Strauss, Nike, Starbucks, Sun Microsystems, The Timberland Company joining the high-profile Ceres group of environmentally conscious investors.

The group said that it would lobby for strong US climate and energy legislation from early next year, as well as seek to stimulate renewable energy investment, promote energy efficiency and green jobs.

In particular, the group has said it will lobby for the new carbon cap-and-trade scheme proposed by president-elect Barack Obama to feature 100 per cent auctioning of carbon allowances, effectively creating a tax on carbon.

It also said it would call for new energy legislation that would limit the construction of new coal-fired power stations that do not feature carbon capture technology and require 20 per cent of US energy to come from renewable sources by 2020.

Mindy S. Lubber, president of Ceres, said the five founding members would send "a clear message for next year’s Congress: move quickly on climate change to kick-start a transition to a prosperous clean energy economy fuelled by green jobs".

The group's goals – tighter environmental legislation that will inevitably lead to increased regulatory burdens and higher short term energy costs – will be regarded as anathema by traditional many business groups.

But the companies involved were insistent that calling fro tougher environmental laws would deliver business benefits and made sound commercial sense.

"Climate change is a threat to any business that relies on an agricultural product like we do with coffee," explained Ben Packard, Starbucks vice president, global responsibility. "Starbucks believes that addressing climate change will help companies like ours reduce operating costs and mitigate future economic instability due to extreme weather conditions and agricultural loss."

Hilary Krane, senior vice president of corporate affairs at Levi Strauss, added that legislative action was essential to help firms mitigate the long term risks presented by global warming.

"Large-scale climate change would have economic, social and environmental consequences for our business and the communities in which we operate," he said. "We can voluntarily change our own behaviour in the hopes of mitigating effects and are doing so, but we also believe that US government leadership is essential if we are to create an environment in which every US company recognises the role it must play in addressing climate change and the responsibilities associated with doing business in a carbon-constrained world."

The new group was welcomed Dan Lashof, director of the Climate Center at the Natural Resources Defense Council, who urged other firms to sign up to the coalition.

"The companies involved in Bicep are ahead of the curve from both a business and environmental perspective," he said. "A national limit on global warming pollution is coming. The companies that anticipate and help shape the limit will have a competitive advantage over those who refuse to move forward."