How Trump’s Paris Climate Agreement Decision Will Affect California Businesses

http://www.dreamstime.com/-image12155315The issue of how business will fare, respond to or be affected by President Donald Trump’s decision to pull out of the Paris Climate Change Agreement received much attention after Trump’s announcement yesterday. Responses to the move in California often highlighted the business issue in both supporting and opposing the president’s move.

Trump argued that his decision would help preserve jobs and businesses in the United States. But many business leaders, especially in California, opposed Trump’s move. The Wall Street Journal reported that many companies will not change strategies that are designed to reduce greenhouse gases because of the announcement. According to the Journal, these companies are responding to shareholder or customer demands to reduce greenhouse gases; are on the path to converting to renewable energies; or businesses in states like California are responding to state mandates to reduce their carbon footprint.

While some energy companies, particularly coal companies, applauded the president, other company leaders expressed disappointment. Business always likes certainty and many business leaders complained that they want to follow a consistent set of rules to face the challenge of climate change. One such company urging a consistent message was ExxonMobil, the country’s largest oil producer. General Electric’s chief executive, Jeffrey Immelt said, “Climate change is real. Industry must now lead and not depend on government.”

In California, both foes and advocates of the president’s decision used the business issue in commenting on Trump’s move.

Two prominent California based business leaders, Tesla and Space X head Elon Musk and Disney’s Robert Iger announced they were resigning from the president’s business advisory council because of Trump’s decision on the Paris accord.

Gov. Jerry Brown said California’s growing economy and new jobs were created under the state’s strong climate change mandates. “California, the sixth-largest economy in the world, has advanced its nation-leading climate goals while also growing the economy. In the last seven years, California has created 2.3 million new jobs – outpacing most of the United States – cut its unemployment rate in half, eliminated a $27 billion budget deficit and has seen its credit rating rise to the highest level in more than a decade.”

NextGen Climate president Tom Steyer went from the farcical calling Trump a “traitor” to urging “courageous action from American business leaders, who know clean energy is simply the better way to clean the air, protect our health and create jobs.”

California Manufacturers & Technology president Dorothy Rothrock said, “California has a new reason to provide meaningful leadership by adopting a market-based approach to reduce emissions that will protect manufacturing jobs and keep costs affordable for consumers.”

Majority Leader Kevin McCarthy (R-Bakersfield) said Trump made the right choice by relieving a burden on the United States and freeing private enterprise to create more jobs. “The American energy renaissance has been good for our country and the world. It created American jobs, freed the United States and our allies from OPEC price controls, and helped to reduce emissions at the same time…President Trump made the right call in leaving a deal that would have put an unnecessary burden on the United States.”

Jim Wunderman, CEO of the Bay Area Council business association, said California’s businesses will continue to pursue a clean-energy future. “Addressing climate change is not just an environmental or moral imperative, it is an economic imperative.”

ditor of Fox & Hounds and President of the Small Business Action Committee

This piece was originally published by Fox and Hounds Daily