Meeting the climate challenge requires the urgent implementation of science-based policy. Whether governments implement sufficiently ambitious climate policies is, in turn, heavily influenced by corporate lobbying. The Carney government is increasingly showing signs of being captured by the oil and gas industry and its allies, pushing Canada further away from meeting its climate commitments and escalating risks for people and the economy.

New research from the climate think tank InfluenceMap finds that negative lobbying by the fossil fuel industry has been highly effective over the last year in driving both policy changes and shifts in the government’s language. Key regulations such as the Oil and Gas Emissions Cap and Electric Vehicle Availability Standard have been repealed, while the Clean Electricity Regulations have been weakened. The government is promoting new oil and gas production by fast-tracking LNG projects, committing to a new oil pipeline with Alberta and extending tax credits for enhanced oil recovery. Prime Minister Mark Carney endorsed the concept of “decarbonized oil,” an Orwellian idea that oil sands companies have pushed for years.

Worse, the fossil fuel industry is not lobbying alone. Powerful cross-sector business groups like the Canadian Chamber of Commerce form part of the anti-climate coalition too. The Chamber represents companies from all sectors of the economy and claims it recognizes the “crucial importance of achieving Canada's net-zero objectives.” However, recent analysis finds that the group’s lobbying on specific climate policies is remarkably aligned with that of the oil and gas industry, despite these companies making up only a small part of the Chamber’s membership. Fossil pressure is now turning to industrial carbon pricing, which the government is planning to strengthen in exchange for gutting the rest of its climate plan.

While the Fossils are often the dominant voice in corporate lobbying over climate policy, they do not represent the business community as a whole. In fact, they are loud outliers from the bulk of industry. For example, despite claiming to be “the national voice of business” in Canada, the Canadian Chamber of Commerce lobbies much more negatively on climate policy than many of its corporate members (see image below).

The Canadian Chamber of Commerce vs. its Members on Climate Policy

Many companies outside the fossil fuel value chain are recognizing the benefits of lobbying for stronger climate policies and pressuring their industry associations to do the same. Growing clean energy industries have clear financial incentives to push for strict policies that accelerate decarbonization. Beyond clean tech, business leaders across the economy, from cement to shipping to consumer staples, are pushing governments to avoid backsliding on climate. They cite strong climate policies as key for unlocking large-scale investments, creating opportunities for innovation and growth, maintaining a level playing field between sector leaders and laggards and mitigating the business risks of climate change.

For investors, long-term returns depend on a sustainable economy and functioning markets, which are existentially threatened by climate breakdown. The economic imperative for climate action creates investor expectations for companies to align their lobbying with the goals of the Paris Agreement.

Ultimately, the quiet majority of companies that would benefit from ambitious climate policy may need to learn a few lessons from the vocal minority who have stopped progress in its tracks. The Fossils are relentless in extracting policy concessions from the government, using each rollback as a new starting point to press further. They are also shameless in flooding the national conversation with misleading narratives about their products, framing oil and gas expansion as essential for securing economic prosperity and energy security despite substantial evidence to the contrary.

But pro-climate companies are on the right side of history, and reality is on their side. The fallout of the Iran War highlights the dangers of doubling down on oil and gas, creating a future in which everyone except the fossil fuel industry is less prosperous and less secure. Every company that shifts from passive to active climate policy support helps move us away from that future.

Charlie Bain is an analyst for InfluenceMap, a global think tank tracking corporate lobbying on climate and biodiversity policy. 

© National Observer