Cicero Policy Briefer

Issue 10, March 2007

Conservatism and conservationism:
How big business and the climate change agenda can co-exist

By James Allen

Since becoming Conservative Party leader in December 2005, David Cameron has gone to great lengths to stress his ‘green’ credentials. He has attracted considerable attention to his efforts—though not always for the right reasons. He has undoubtedly shifted the debate within the Conservative Party on tackling climate change and promoting environmentally responsible behaviour.

The Conservatives have played an important role in raising the political stakes on the climate change issue, with the three major parties now competing to be the most ‘green’. Cameron continues to view climate change as a core issue in attempting to grab the centre ground in British politics: it is an issue which will undoubtedly be more significant to the outcome of the next general election, when it comes, than it was in the last.

Some continue to argue that it is difficult to reconcile business efficiency and competitiveness with social objectives such as reducing carbon emissions. Cameron will inevitably face calls both from elements of the business community and from within his own party to review current business tax arrangements. There is likely to be a backlash against any moves toward green taxes that are perceived to increase the overall business taxation burden. Furthermore, financial service sector companies are under pressure to make investments that are profitable to generate returns for shareholders—which can, on occasion, come into conflict with environmentally desirable objectives.

To explore how business can remain competitive while becoming more ‘green’, the Conservative Party is hosting a summit with business leaders, aiming to showcase some successful developments in tackling change—through, for example, carbon offset and reduction projects. The Conservatives appear determined to demonstrate the compatibility between tackling climate change and the ‘harder’ objectives of business, with Shadow Chancellor George Osborne commenting: "It's about showing that you don't have to choose between having strong and successful businesses and tackling climate change.”

Climate change has clearly shot up the political and media agendas in recent years and business has begun to respond. If we are to make a serious effort to tackle climate change, environmentally responsible business practice must not be seen as peripheral to business, or as merely part of a company’s CSR strategy, but as centrally important. The Stern Review has identified potential opportunities for business—for example, in emissions trading. Moreover, consumers are increasingly likely to demand an element of environmental sustainability in products and investments: business must be ready for this. Perhaps it is time to look upon it as an opportunity as well as a challenge.

James Allen can be contacted on +44 (0)20 7665 9530 or click here to email.

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