Competitiveness in the Climate Change Legislation Discussion

Pursuing the right policies that ensure economic competitiveness in a global, 21st Century economy should be a key objective for local, state, national or global Climate Change Legislation. However, individual business interests are not always included in policy making.

The issue is not the competitiveness of the global economy or even the U.S. economy as a whole. The focus is legislative impacts on energy intensive industries that compete globally. In an analysis by Resources for the Future for the Pew Center, the “competitiveness” impact of a mandatory cap-and-trade system, at an allowance price of $15 a ton, would equate to a 2-percent decline in output in energy-intensive industries as a whole. The study went on to cite other potential economic consequences from climate change legislation in these industries:

Industry job loss
Individual company market share loss
Relocation of production facilities to countries with laxer or no GHG constraints

Companies and industries as a whole will experience change from the pending legislation. The potential impact of climate change action on economic competitiveness is real, and there are still some unanswered questions:

Will the United States enact mandatory domestic emission limits?
Will there be a multilateral agreement establishing binding international commitments for all major economies?
What will be done with the developing economies?

At Taiga Company, we realize climate change legislation is on the horizon, and the future of some of our energy intensive global clients is in question. We understand that pending legislation will ultimately impact current day operations across all industries and national boundaries; however, some may be impacted greater than others.

As an energy consultant our aim is to help companies implement sustainability concepts as a positive company direction. Negative business impacts from climate change legislation can be easily translated and into a competitive advantage over the competition. Companies pre-positioned will be able to differentiate themselves in the industry and capture market share.

Industry and individual business sustainability in energy intensive industries may depend on proactively incorporating energy efficiency and eco awareness into current business processes. Taiga Company believes that a proactive strategy is the key to business competitiveness.