Policy & Advocacy: Shaping the Net Zero Regulatory Landscape
Policy frameworks—from carbon pricing to product standards—set the rules of the climate game. Strong corporate engagement ensures pragmatic regulations that drive decarbonization without stifling growth. The IMF estimates carbon pricing could slash emissions by12 Gt CO₂eby 2050¹. Let’s explore key policy tools and advocacy strategies.
Key Policy Instruments
Carbon Pricing:Covers over22%of global emissions via ETS or carbon taxes². EU ETS allowances traded at €80/ton in 2024³.
Performance Standards:Mandates on energy efficiency and product eco-design (e.g., EU Ecodesign Directive) push manufacturers toward innovation.
Effective Corporate AdvocacyJoining coalitions like the Oil and Gas Climate Initiative (OGCI) gives companies a collective voice in policy debates⁴. Best practice is to present data-driven positions—e.g., illustrating how gradual carbon price increases align with decarbonization roadmaps and economic resilience.
Action Plan
Model Regulatory Impact:Use internal analytics to quantify how proposed policies affect costs and competitiveness.
Engage Early:Participate in public consultations and industry working groups.
Collaborate with NGOs:Partner with credible third parties to bolster legitimacy.
Key TakeawaysProactive policy advocacy shapes effective, balanced regulations. By modeling impacts, engaging early, and collaborating broadly, companies steer the policy environment toward Net Zero success.
References:
IMF. (2023).State and Trends of Carbon Pricing. https://www.imf.org/carbon-pricing
World Bank. (2023).State and Trends of Carbon Pricing 2023. https://www.worldbank.org/carbon-pricing
European Commission. (2024).EU ETS Data Viewer. https://ec.europa.eu/euets-data
Oil and Gas Climate Initiative. (2023).Advocacy Brief. https://ogci.com/policy