Oil giant ConocoPhillips today announced that it won’t renew its membership in the US Climate Action Partnership, an industry group that advocates for climate legislation.
The company is following BP and heavy equipment manufacturer Caterpillar out the door, claiming that it will be more effective in reducing emissions by helping consumers increase use of natural gas.The new also comes on heels of the U.S. Chamber of Commerce’s announcement that it plans to sue the EPA to block administrative regulation of greenhouse gas.
It seems like businesses are starting to turn against the Obama Administration in its attempts to pass a climate change bill. Membership in these organizations was, for oil companies, likely a way to shape the proposed legislation to curb emissions.
If there’s no bill in the offing, companies won’t need that hedge and won’t lose anything by not having a seat at the negotiating table.
ConocoPhillips Chairman and CEO Jim Mulva gave other reasons:
House climate legislation and Senate proposals to date have disadvantaged the transportation sector and its consumers, left domestic refineries unfairly penalized versus international competition, and ignored the critical role that natural gas can play in reducing GHG emissions.
The Climate Action Partnership still counts General Electric, NRG Energy, PG&E, Shell and Rio Tinto among its members. The group seeks a cap and trade mechanism with allocation of emission allowances to capped businesses.
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The FT’s Energy Source is skeptical of all these companies dropping out of the group, yet claiming they still want action on climate change.
Sheila McNulty writes
If big name companies like these stop pressuring Congress and the Administration to act, the likely result will be that nothing gets done. Could that be what they are really hoping for?