Corporate Lobbying in Climate Change Policy

By: Amalia Arango, Arpita Bansal,

Emily Prettyman, Redeit Hailu & Rimaz Yousif

Table of Contents

1. Project Objective
2. Cross Country Comparisons
3. Brazil
1. Profile
2. COVID 19 Recovery Plan
3. Analysis
4. Recommendations
4. Colombia
• Profile
• COVID 19 Recovery Plan
• Analysis
• Recommendations

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5. Ethiopia
1. Profile
2. COVID 19 Recovery Plan
3. Analysis
4. Recommendations
6. India
1. Profile
2. COVID 19 Recovery Plan
3. Analysis
4. Recommendations
7. Mexico
• Profile
• COVID 19 Recovery Plan
• Analysis
• Recommendations

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2

Project Objectives

• Formulate recommendations to leverage the importance of lobbying capacity of large companies in five WRI country offices to affect positive change in climate change policy
• More than a CSR strategy, companies should get more involved with lobby and policy proposal
• Effects of climate change: extreme rainfall, flooding, extreme heat, water security, droughts
• Covid-19 recovery plans and financial aid

3

Countries of Interest

4

Colombia

India

Ethiopia

Brazil

Mexico

Cross Country Comparisons

Main Effects of Climate Change

6

NDC Goals

7

Sectors Affected by Climate Change

8

NDC: National Implementation

9

NDC: How National Goals Will Be Achieved

10

NDC: Sectors Contributing to Achieve Goals

11

Financial Response to COVID-19

12

Brazil

NDC Statement

• Contribution: Brazil intends to commit to reduce greenhouse gas emissions by 37% below 2005 levels in 2025
• Subsequent indicative contribution: 45% share of renewables in the total energy mix by 2030
• Coverage: 100% of territory, economy-wide, including CO2, CH4, N2O, Perfluorocarbons, hydrofluorocarbons and SF6
• Timeframe: Single-year target for 2025; indicative values for reference purposes only
• Metric: 100 year Global Warming Potential (GWP-100) using IPCC AR5 values
• Other: Seeks to enhance its national capacity in water security (National Water Security Plan) and conservation and sustainable use of biodiversity (National Strategic plan for protected areas)

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Proposed/Recent Climate Legislation

• Feb 2020: President Bolsonaro proposed bill to allow for mining on protected indigenous land
• Feb 2020:Formation of Amazon Council under the leadership of Vice President Hamilton Mourão
• Law 13,66 (2018) re-establishes the allocation of environmental offset resources. Moreover, the new rules will increase protection areas' management capacity, reallocating amounts collected as a result of environmental impact, to a fund.

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15

Lobbying in Brazil

• Not regulated, no Disclosure rules
• Lobbyists and companies are not required to report their earnings, activities, or engagements
• Multinational Companies were their first private sector lobbying examples
• Bill to regulate was proposed in 2018 but not passed
• Public (from the different ministries) and private sector lobby is undertaken

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16

Lobbying Actors

• Agribusiness Lobby - Bancada Ruralista
• Makes up 55% of Congress
• Clean Energy MInisterial
• Brazilian Climate Observatory
• Amazon Environmental Research Institute
• Multinational Companies

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Government Actors

• Amazon Council: Vice President Mourao
• FUNI- National Indian Foundation
• Minister for the Environment: Ricardo Salles
• National Environmental Council
• IBAMA - Brazilian Institute of the Environment and Renewable Natural Resources
• Ministry of Mines And Energy - Bento Costa Lima Leite de Albuquerque Júnior
• Sisnama:National Environmental System

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Trade Associations

• Ethos Institute Business and Social Responsibility - an OSCIP (Civil Society Organization of Public Interest) whose mission is to mobilize, raise awareness and help companies manage their business in a socially responsible manner, making them partners in building a fair and equitable society. Sustainable.
• CEBDS- Brazilian Business council for sustainable development, worked with WRI
• IBRAM- Mining Association Committed to Sustainable development
• Chico Mendes Institute for Biodiversity Conservation (ICMBio)

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Influential Companies

• Alcora:
• Member of Ethos Institute, CEBDS, IBRAM
• Leader in bauxite, alumina and aluminum
• PAC in US , political involvement in Brazil unclear
• Carrefour:
• Ethos institute Member and UN Global Compact
• Natura:
• Ethos institute Member, CEBDS, and UN Global Compact
• New Steel:
• CEBDS Business Commitmentment to Water Security 2018
• Goal: to Transform Mining to Be more Sustainable

20

COVID-19 Recovery Plan

• 2nd highest death toll behind US
• To mitigate the impact of COVID-19, the authorities announced a series of fiscal measures adding up to 11 percent of GDP ($30 Billion USD)
• The fiscal measures Include
• temporary income support to vulnerable households ( pension payments to retirees, cash transfers to informal/ unemployed workers,advance payments of salary bonuses to low income workers),
• employment support (partial compensation to workers which are temporarily suspended or have a cut in working hours),
• lower taxes and import levies on essential medical supplies
• new transfers from the federal to state governments to support higher health spending and as cushion against the expected fall in revenues

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Analysis

Opportunities

• On Track to meet: NDC target of a 45% share of renewables in the total energy mix by 2030
• CEBDS
• Amazon Council
• IBRAM
• In the Constitution

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Challenges

Bolsonaro Administration

Bancada ruralista (agribusiness lobby)

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Recommendation

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Partner with environmental groups to facilitate identification and training of potential candidates for office

Colombia

NDC Statement

• In 2015 the country joined the COP 21 and promised to reduce GHG emissions in 20% by 2030 >> Climate change is priority
• Given the diverse geography of the country and its economic dependency on climate and natural resources, Colombia is exposed and highly sensitive to climate change.
• Five strategies to achieve it: urban and rural development, management and conservation of ecosystems and the services it provides, development of low-carbon energy mining, and development of electric infrastructure.
• In 2010 the country produced a total of 224 mega tonnes of CO2, which represents 0.46% of the global total.

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NDC Statement

• The two sectors that most contribute to this emissions are agriculture (130 MTon) and energy (71 MTon)
• Sectors involved to combat climate change: agriculture, forestry and other land use, energy, transport, tourism manufacture, housing, health, and commerce.
• 68% of total electricity > hydroelectric power. Consumption per capita (31 MBTU) one of the lowest of the region (57 MBTU) and worldwide (74 MBTU).
• Commitment to reduce deforestation and preserve important ecosystem such as the Amazon rainforest. Importance to build resilient systems to avoid climate disasters that highly affect the economy

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Proposed/Recent Climate Legislation

• There is a carbon tax of US $4 per ton
• Fracking is still allowed due to excess lobbying
• Bill that forbids single use plastics from 2025 > Lobby from Acoplasticos arguing that the price for foods will increase as well as thousands of jobs lost and food waste.
• Bill to avoid animal use in cosmetic products
• Bill to forbid production and distribution of polystyrene
• Fight against deforestation
• Declare nature should have rights
• Prohibit use of transgenic seeds

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27

Lobbying in Colombia

• It is a non-regulated activity, so corruption can be involved on it. Under-represented sectors may lose opportunities due to the lack of regulation
• There has been a lot of lobby to avoid its regulation
• Monthly advisory: $15-$20 million (US$4.000 - US$6.000)
• Meeting with Minister: $20 million COP (US$ 6.000)
• Due to excess lobby, fracking is still allowed and the sugar tax did not pass

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Lobbying Actors Important Characters

• Axis - Helen López
• Javier Hoyos Asesores
• Urdaneta, Vélez, Pearl & Abogados - Martha Abdallah Pastrana
• Sed Nove - Andres Garcia

• Min. of Environment and Sustainable Development: Ricardo José Lozano Picón
• Min. of Mines and Energy: María Fernanda Suárez
• Director of ACP: Rodrigo Lloreda

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Trade Associations

• ANDI: business
• Federación Nacional de Cafeteros: coffee
• Analdex: trade
• Asocolflores: flowers
• Asocaña: sugar cane
• Fenalco: commerce
• Fedegan: livestock

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• Acoplásticos: plastics
• ANM: Mining National Agency
• ANH: National Hydrocarbons Agency
• ACP: Colombian Association of Petroleum

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Influential Companies

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Influential Companies (cont.)

• Nutresa (foods): 45.618 <Improve water security>
• Grupo Éxito (retail): 42.000
• Bancolombia (bank): 30.000 <Reduce gas emissions>
• Grupo Altum (security): 26.631
• Avianca (airline): 21.061 <Reduce CO2 emissions>
• Cencosud (retail): 14.572
• Colsubsidio: 13.061

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• Postobon (beverages): 11.122
• Manuelita (sugar): 9.675
• Ecopetrol (oil & gas): 9.315 <Reduce methane emissions>
• Argos (cement): 9.166 <Reduce CO2 emissions and improve water security>
• Cafam: 8.300
• Alpina (dairy): 5.150
• Bavaria (beverages): 4.000

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COVID-19 Recovery Plan

• Cases as of June 17 > 57.046 / Deaths > 1.864
• State of emergency declared on March 17 and quarantine since March 25 until July 1st. Older than 70 mandatory until August 31st. Travel bans, border closures, and a suspension of classes.
• National Emergency Mitigation Fund, will spend 2% of GDP for recovery plan
• New credit lines providing liquidity support to the coffee sector, education, health and tourism. New credit lines for SMES through the National Guarantee Fund, two-month suspension of pension contributions by employees and employers, delayed tax collection, exemption of tariffs and VAT for health imports and selected food industries and services, delayed utility payments for poor and middle income households, additional taxes for public sector workers (to help fund the response), expanded transfers for vulnerable groups, and additional benefits for recently unemployed workers.
• World Bank aid package of US $250 million

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Analysis

Opportunities

• Climate change is a priority for the country
• Companies involved with environmental targets
• Several environmental bills in progress
• Lobby is not fully regulated

Challenges

Fracking not prohibited

Oil and energy dependent economy

Contribution to GHG very low

Country highly polarized

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Recommendation

• Promote education to the private sector and encourage participation on lobby

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• Address big companies and associations which are willing to contribute to participate on policy

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• Take advantage of the unregulated lobby

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Ethiopia

NDC Statement

Commitment: Emission reduction by 64% below 2010 levels = 255 MtCO2 by 2030

Highest industry emitters

• 42% Livestock = 65 Mt CO2
• 37% Deforestation and forest degradation = 55 mt CO2
• 9% Crop cultivation = 12 Mt CO2

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NDC Statement: Mitigation & Adaptation Efforts

Focus

• DEFORESTATION: Afforestation and land rehabilitation interventions.
• ENERGY: Generation and distribution of electricity from clean and renewable sources.
• Investment in improved transportation systems (e.g. railway) that utilize clean and renewable energy. These investments will be complemented by urban planning transition towards mixed use, compact, and polycentric cities, resulting in shorter distances travelled to reduce transport/traffic related GHG emissions.
• Several structural measures have also been put in place including the removal of fossil fuels subsidies.

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Adaptation

• Sustainable land management program
• Productive Safety Net program contribute to building resilience to climate change
• The Ethiopian program of adaptation to climate change (EPACC 2011)
• The national adaptation program of action (NAPA) since 2007
• Nine national regional states and two city administrations adaptation plans
• Five sectoral adaptation plan
• Agriculture sector adapting strategy

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Existing Legislations

• Ethiopian Water Resources Management Proclamation (2000): gave authority to the Ministry of Water Resources to issue licences for the development of water resources
• Ethiopian Programme of Adaptation to Climate Change (EPACC)
• Climate Resilient Green Economy Strategy (CRGE): the basis for policy mitigation related to climate change
• Agricultural Development-Led Industrialisation (ADLI) policy framework: policy response specific to Ethiopia's food security and agricultural productivity challenge
• Ethiopian National Adaptation plan: builds on ongoing efforts to address climate change in the country's development policy framework, including the Climate Resilient Green Economy (CRGE) strategy and the second Growth and Transformation Plan (GTP II). Which will be led by existing CRGE mechanisms
• Sustainable Development and Poverty Reduction Program (SDPRP): The overarching objective of the government's poverty reduction strategy is to reduce poverty through at the same time maintaining macroeconomic stability.

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Proposed/Recent Climate Legislation

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• The Environment Forest and Climate Change Commission has taken steps to completely ban the production and import of single use plastic bags in an attempt to protect the environment.
• A draft amendment for ‘Geothermal Resource Development Proclamation No. 981/2016’ that will include the exemption of taxes is tabled to parliament. The draft amendment will consider the energy development as other mining and petroleum investments. The preamble of the draft amendment of the proclamation stated that the amendment aims to improve incentives for companies who are engaged in the investment of energy, which consume huge amount of resource.
• The government also has a commitment to new electric rail, crucial to reducing emissions in this landlocked country.

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Lobbying in Ethiopia

• Previously Illegal.
• Bans are in the process of being lifted.
• The 2018 Proclamation – a law that specifically encourages CSOs to engage in advocacy and lobbying in regard to laws and policies “which have a relationship with the activities they are performing”.

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Government Actors

• The Environmental Council: responsible for recommending laws and regulation for approval by the Council of Ministers. The Environmental Council can approve environmental standards and directives independently.
• The Ministry of Environment and Forest (MEF)
• Ethiopian Environmental Protection Authority (EPA)
• Ethiopian Water Resources Management
• Ethiopian Environment , Forest and Climate Change Commission (EFCCC)

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Trade Associations

• Ethiopian Coffee Exporters Association (ECEA)
• Ethiopian Horticulture Producer Exporters (EHPEA)
• Ethiopian Livestock Traders Association (ELTA)
• Ethiopian Pulses, Oilseeds and Spices Processors Exporters Association (EPOSPEA)

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Influential Companies

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UN Global Compact

• African Humanitarian Action
• Mefthe Engineering PLC
• GIZE PLC
• Organization for Social Development
• Addis Ababa Chamber of Commerce and Sectoral Associations

Other Major Companies

• DASHEN
• BGI
• Heineken
• Derba MIDROC Cement
• BASF

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COVID 19 Recovery Plan

• 5 billion Birr (US$154 million or 0.15 percent of GDP) )allocated by the government as of March 23rd.
• The funds are expected to be allocated as follows:
• $635 million for emergency food distribution to 15 million individuals vulnerable to food insecurity and not currently covered by the rural and urban PSNPs;
• $430 million for health sector response under a worst-case scenario of community spread with over 100,000 COVID-19 cases of infection in the country, primarily in urban areas;
• $282 million for provision of emergency shelter and non-food items;
• The remainder $293 million, would be allocated to agricultural sector support, nutrition, the protection of vulnerable groups, additional education outlays, logistics, refugees support and site management support.

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Analysis

Opportunities

• Ban of single used plastic
• Geothermal Resource Development Proclamation
• Climate Resilient Green Economy Strategy (CRGE)
• Ethiopian National Adaptation plan

Challenges

Inadequate policy directions and framework plans

Coordination and integration among the different stakeholders

No framework for Corporate Lobbying

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Recommendations

• Coordinate Summits
• Business Roundtable
• Framework to strengthen corporate lobbying effectively

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India

NDC Statement

• NDC Commitment: reduce GHG emissions by 20-25% by 2020 and 30-35% by 2030 over 2005 levels.
• India submitted its Nationally Determined Contribution (NDC) to the UNFCCC on 2nd October, 2015, outlining the climate actions intended to be taken under the Paris agreement. There are eight goals put forth by India in its NDC report.
• Within the scope of Mitigation strategies, India has focused in the areas of clean energy and its conservation, agricultural development, waste management, smart cities, transportation systems, planned afforestation, fiscal instruments like cess on coal, oil, and gas to promote clean and renewable energy.
• Adaptation strategies place focus on agricultural sector, water - conservation, groundwater depletion and clean rivers, health – adaptive technologies, coastal regions and islands - zone protection and management, disaster management, protecting biodiversity and rural livelihood.

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NDC Statement (cont.)

• Under private sectors’ contributions - Companies Act 2013 directs companies to utilise 2% of profits on Corporate Social Responsibility (CSR) activities. Estimates indicate that a fair share of the available CSR funding of about INR 220 billion (USD 3.5 billion) annually will be invested in environment initiatives from this window.
• The Indian industry has also participated in voluntary carbon disclosure programs whereby they report their carbon management strategy and GHG emissions. Latest Report by Carbon Disclosure Project, India indicates a reduction of 165 million metric tons of CO2 equivalent by Indian industries.
• The Small and medium-sized enterprises (SME) Cluster Programs for Energy Efficiency covers more than 150 clusters. Small Industry Development Bank of India (SIDBI), in 500 SMEs spread over 40 industrial clusters, is expected to save annually 30,000 tonnes of GHG emissions.
• “India GHG Programme” is another voluntary program led by WRI, CII and TERi to support development of India-specific emission factors and for corporates to measure their carbon footprints.

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Existing Climate Legislation/Initiatives

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• The broad policy framework on environment and climate change is laid down by the National Environment Policy (NEP) 2006, which promotes sustainable development along with respect for ecological constraints and the imperatives of social justice.
• National Action Plan on Climate Change 2008 – The National Action Plan on Climate Change (NAPCC) provides a sharper focus on required interventions. NAPCC is implemented through eight National Missions, outlining priorities for mitigation and adaptation to combat climate change. These include - National Solar Mission, National Mission for Enhanced Energy Efficiency, National Mission on Sustainable Habitat, National Water Mission, National Mission for Sustaining the Himalayan Ecosystem, National Mission for a Green India, National Mission for Sustainable Agriculture, National Mission on Strategic Knowledge for Climate Change.
• 32 States and Union Territories have put in place the State Action Plan on Climate Change (SAPCC) attempting to mainstream climate change concerns in their planning process.
• Climate Change Action Programme (CCAP) is a central scheme whose objective is to create and strengthen the scientific and analytical capacity for assessment of climate change in the country.

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Lobbying in India

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Lobbying is illegal in India for any and all industries.

Government Actors

• The Ministry of Environment, Forest and Climate Change (MoEFCC) is the nodal agency in the administrative structure of the Central Government for the planning, promotion, coordination and overseeing the implementation of India’s environmental and forestry policies and programmes.
• The Ministry of Science & Technology was entrusted with the responsibility of coordinating two national missions on climate change under NAPCC.
• The Central Pollution Control Board (CPCB) provides technical services to the Ministry of Environment and Forests. The CPCB also promotes cleanliness of streams and wells in different areas of the states by prevention, control and abatement of water pollution.

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Trade Associations

While there are 31 trade associations all over the country, only one called - Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India. It is not specific to a particular industry, rather works in a collaborative manner with all the impacted ones.

Role:

• To inform stakeholders in each project and advocate for climate actions
• Their decisions and strategies are directed by steering committees and governing councils.

The India Climate Collaborative is another organization inspiring, connecting and empowering government as well as corporates to enable climate action.

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Influential Companies

Companies part of UN Global Compact – 342 participants

These companies have also published sustainability reports on NAZCA and CDP.

• Software - HCL, SAP India Pvt. Ltd, Tech Mahindra, Wipro, Tata, Infosys
• Oil and Gas – Adani Green Energy, Avaada Energy Pvt. Ltd, GAIL india, Hindustan Petroleum Corporation, ONGC, Indian Oil, Oil India Ltd
• Electricity – Elcom International Pvt. Ltd, Sterlite Technologies, Havells India
• Chemicals – Gujarat Fluorochemicals Ltd, PI Industries Ltd, Tata
• Steel – Hindustan Copper Ltd, Jindal Steel, Vedanta, Tata Steel, Hindustan Zinc ltd

Other Industries with small players: Food and Beverage, Construction, Support services.

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COVID-19 Recovery Plan

Fiscal and Employment

• Finance Minister Sitharaman on March 26 announced a stimulus package valued at approximately 0.8 percent of GDP.
• Tax measures - postponing tax filings, waiving off parts of tax amounts, refunding GST
• Business-support package includes financial sector measures for MSM enterprises and non-bank financial companies, liquidity injection for electricity distribution companies and a reduction in up-front tax deductions for workers.

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Monetary and Macro

• Reserve Bank of India (RBI) reduced the repo and reverse repo rates by 75 and 90 basis points (bps) to 4.4 and 4.0 percent, respectively.
• The Securities and Exchange Board of India (SEBI) reduced the required average market capitalization of public shareholding and minimum period of listing.
• The limit for FPI investment in corporate bonds has been increased to 15 percent of outstanding stock for FY 2020/21.
• Restriction on non-resident investment in specified securities issued by the Central Government has been removed.
• Foreign direct investment policy has been adjusted requiring that an entity of a country that shares a land border with India can invest only after receiving the government approval.

India has 160,384 active COVID-19 cases as of June 18, with 12,237 deaths attributed to the disease.

Analysis

Opportunities

Clean energy grid expansion programs

Agricultural technology

SMART cities for urban development

Solid waste management

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Challenges

Growing population has increasing demands- limited resources.

Coordination and integration among the different stakeholders

No framework for Corporate Lobbying

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Recommendations

• Promote education to the private sector and encourage participation from all stakeholders

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• Address companies and associations in power to develop programs which support government initiatives

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• Create conferences/summits to increase voluntarily involvement from influential companies and associations

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Mexico

NDC Statement

• Published three National Strategies on Climate Change and in 2009 adopted its first Special Program on Climate Change
• Presented five National Communications with their respective greenhouse gas inventories to the UNFCCC
• April 2012; Mexican Congress unanimously approved the General Law on Climate Change
• Consistent with pathway to reduce 0% of emissions by 2050
• Sectors mentioned
• Energy, Industrial Processes, Agriculture, Water, Land Use

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NDC Statement; Mitigation & Adaptation Efforts

• Mitigation
• Unconditional measures
• Reduce 25% of its GHG and Short Lived Climate Pollutants by 2030
• Conditional actions
• 25% reduction commitment could increase to 40% in a conditional manner
• Adaptation
• Adaptation to climate change for the social sector
• Ecosystem-based adaptation
• Adaptation of strategic infrastructure and productive systems

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Existing Climate Legislation/Initiatives

• General Law on Climate Change
• Published on June 6th, 2012
• Last reformed; July 13th, 2018
• Energy Transition Law
• Implemented on December 24th, 2015
• Carbon tax in Mexico
• Introduced in May 2014
• Climate Change Mid-Century Strategy
• November 2016

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Lobbying in Mexico

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Lobbying Actors

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Government Actors

• Chamber of Commerce for Tlalpan
• National System of Climate Change
• Interministerial Commission on Climate Change (ICCC)
• National Institute of Ecology and Climate Change (INECC)
• Climate Change Council (3C)
• Association of Authorities in the States and Municipalities

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• Secretariat of Environment and Natural Resources
• National Water Commission
• Federal Attorney for Environmental Protection
• National Commission of Natural Protected Areas
• National Forestry Commission
• Mexican Institute of Water and Technology
• National Commission for the Knowledge and Use of Biodiversity

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Trade Associations

• National Chamber of Commerce and Transformation (CANACINTRA)
• The Mexican National Chamber of Industry (CONCAMIN)
• The Mexican Cement Chamber (CANACEM)
• The Mexican Institute of Competitiveness (IMCO)
• Cyosa Group
• The Mexican Iron and Steel Industry Chamber (CANACERO)
• Norten Mining
• Union Association of Flight Attendants of Mexico (ASPA)
• Volaris airline

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• Business Coordinating Council (CCE)
• Nuevo León State Manufacturing Industry Chamber (CAINTRA)
• Industrial Development and Economic Growth Institute (IDIC)
• The Mexican Employers' Confederation (COPARMEX)
• Petrol Station Entrepreneurs Mexican Association
• ArcelorMittal
• Mexican Employers' Confederation (COPARMEX)
• Altos Hornos de México (MINOSA)

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Influential Companies

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COVID-19 Recovery Plan

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Analysis

Opportunities

• Comprehensive adaptation component to NDC

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• Many governing/association bodies with power to influence

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• No articles regarding strict lobby regulation

Challenges

Lopez Obrador Administration

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Recommendations

• Additional policies needed to reach NDC targets

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• Leverage representatives under the NSCC and its ruling bodies

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Contact Information

THANK YOU!

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Arpita Bansal

ab2240a@student.american.edu

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Amalia Arango

aa7418a@student.american.edu

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Emily Prettyman

ep6738a@student.american.edu

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Redeit Hailu

rh9096a@student.american.edu

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Rimaz Yousif

ry3385a@student.american.edu

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