The new Conservative Climate Caucus announced by Utah Republican Rep. John Curtis proves that conversations around the issue of climate change are shifting. While climate conversations have traditionally been dominated by prognostications from those on the left, it’s clear that conservatives are starting to open the door to new policy discussions. This shift is led by not just the recognition of necessary weather mitigation solutions, but also the economic opportunities that exist across the energy sector.
As Curtis himself notes in a recent interview, the trendlines and economic pitfalls of extreme weather are starting to make themselves clear here in the U.S. Extreme drought, unpredictable flooding, untamable forest fires — all of these large scale natural disasters used to be issues that most regularly impacted economies in the global south. Any weather catastrophe here at home was regionalized and irregular. However, that is no longer the case.
Extreme weather events are increasingly disrupting the lives of Americans across the country, as well as regional industries and economies. As Curtis notes, it’s not the one-off events that are motivating the Republican party — it’s the larger trendline that indicates this is a challenge that will have ramifications for business and beyond.
Energy industry watchers recently saw an interesting dynamic play out through the Exxon shareholder vote. While Engine No. 1’s campaign for board seats was cast as some kind of environmental activist takeover, the truth is far more economic. Beyond desires to decarbonize, Charlie Penner, Engine No. 1’s Head of Active Engagement, has said that Exxon’s financial performance was a significant factor in the hedge fund’s decision to put forward shareholder nominees. Their stated goal was for Exxon to “better position itself for long-term, sustainable value creation.” It was always about the financials.
These worries over long term profitability are the same concerns facing the newly formed Conservative Climate Caucus now. As debate over the Green New Deal has shown, representatives on the right are unwilling to completely hand over the energy sector’s future to an opposing party that has little industry knowledge and experience. Instead, they’ve decided it’s time to put their own members forward to better help the U.S., as a whole, navigate the coming energy transition. In doing so, they’re also strengthening Republican’s appeal for young, conservative Millennial and Gen Z voters, who tend to lean left on environmental policies but otherwise align with the right.
Already the Conservative Climate Caucus includes 45 Republicans from across the country. While both sides of this equation have been unwilling to meet in the middle before, the Caucus’s growth has proven their desire to help guide the conversation.
Looking ahead, in order to continue to grow and be successful, the Caucus needs to be able to foster a productive dialogue between diverse voices — ranging from activists to economists, oil and gas leaders, and beyond. By focusing on innovation, rather than elimination of key energy players, it’s possible to align stakeholders in a way never before possible and achieve the compromises needed to meet our growing energy needs.
Industry incentives are likewise maturing. Early last year, Crestone Peak Resources, one of the top producers of oil and natural gas in the Denver-Julesburg Basin, announced their commitment to continuous air quality monitoring of its production sites. Five years ago, the technology to make this feasible did not exist. Today, continuous monitoring creates opportunities for oil and gas companies to identify areas for operational improvements.
Most operators have found that the benefits clearly outweigh any potential costs. Crestone Peak moved forward with continuous monitoring for reasons that drive players on both the right and left: They care about the planet and they saw an opportunity to produce a differentiated product and hopefully sell it for a premium. As Crestone Peak has proven, there is a growing market for certified, or responsibly sourced, natural gas — gas that has undergone third–party certification to verify that the operator has utilized the highest standards and practices in all phases of their operations. Crestone’s choice has paid off; in May, Xcel Energy, Colorado’s largest electric utility said it was going to buy low emission certified natural gas from Crestone as a means to help deliver on their net zero emissions targets. This deal has validated that technology and innovation can improve business performance, reduce emissions and enable new markets for natural gas.
If the Conservative Climate Caucus is to succeed, they need to take back their share of the conversation around climate, and build a playbook that reflects this union of environmental and economic incentives. As Curtis demonstrates, House Democrats and Republicans actually do hold a shared goal: To recreate our energy infrastructure in a way that is both sustaining and regenerative, as well as competitive.
Romer is a former Colorado state senator and an entrepreneur.