Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Confederation of British Industry (CBI) has become increasingly positive in its positioning on climate policy, and is strategically engaged on the issue. CBI’s top-line promotion of climate action is mostly in line with its lobbying of specific climate regulations, although the organization adopts less supportive positions on carbon border adjustment mechanisms and emissions trading, and some of its advocacy on the energy transition is not clearly aligned with IPCC science.
Top-line Messaging on Climate Policy: The Confederation of British Industry (CBI) supports top-line climate ambition in its public messaging. In a June 2023 press release, CBI supported the UK’s net-zero target and advocated for accelerated action to reach the goal, and appeared supportive of the UK’s 2030 GHG reduction target in a July 2024 press release. CBI supported government regulation to respond to climate, measures to phase out fossil heating and introduce carbon pricing in a July 2023 press release. CBI supported increasing global ambition on climate, signing a joint statement in April 2023 calling for all countries to increase the ambition of their Nationally Determined Contributions, ahead of global stocktake of the Paris Agreement.
Engagement with Climate-Related Regulations: The Confederation of British Industry (CBI) appears supportive of specific climate policies in the EU and UK, although with some unclear positions. The association is supportive of energy efficiency legislation, advocating for measures in the UK Energy Security Bill to improve insulation in the UK’s building stock in a July 2022 press release, and supporting energy efficiency incentives in its October 2022 response to the UK Net Zero Review.
CBI adopts unclear positions on carbon border adjustment mechanisms and carbon leakage. In its July 2023 Going for Green report, the association broadly supported a carbon border adjustment mechanism in the UK, and in an October 2022 submission on the UK Net Zero Review, CBI supported “emissions taxation”. However, in both cases it did not specify a position on the removal of existing carbon leakage protection for exposed sectors. CBI takes less clear positions on emissions trading. In the October 2022 submission on the UK Net Zero Review, the association supported linking the EU ETS and the UK ETS. However, in its July 2023 Going for Green report, CBI highlighted the risk of carbon leakage, suggesting this could be addressed through an unspecified evolution of the UK Emissions Trading System, with unclear implications for the ambition of the policy.
Positioning on Energy Transition: The Confederation of British Industry (CBI) appeared mostly supportive of measures to accelerate the energy transition with some exceptions, including ambiguous positions on decarbonizing hydrogen production and uses. The association has advocated for a range of measures to phase out GHG emission intensive technologies and infrastructure, for example supporting investments in offshore wind in an April 2024 press release, and supporting electrification of transportation, increase in renewable energy and the decarbonization of the buildings sector in a July 2024 press release. However, CBI signed the November 2023 Brussels Declaration which, against the background of the Russian invasion of Ukraine, supports new exploration and production of fossil gas alongside increased renewable and low carbon energy. The association stated support for hydrogen and carbon capture technologies on multiple occasions, but without clarifying the production method for hydrogen or the intended role of CCUS in the energy transition, for example in a March 2024 interview with CEO Rain Newton-Smith or in a May 2024 article on its website. In a March 2023 press release, CBI stated support for nuclear energy but did not clarify how it sees the role of nuclear with regard to a full transition towards a zero-emissions energy system. In a June 2023 BusinessEurope declaration, the association advocated to broaden the EU Net Zero Industry Act, advocating for technology neutrality without clarifying what this would include.