Act on Climate by Challenging Corporate Power

By: Ida Eskamani

As the fossil fuel industry works with state legislators across the country to censor “climate change” from state laws, investments, and text books– the Earth is warming at an unprecedented rate, with human activity as the principal cause. Costs and consequences are increasing for everyone. But it is historically disenfranchised communities – Black, immigrant, indigenous, rural, and working class – who are most harmed. These communities’ expertise and organizing power is essential to combating climate change and building the futures we deserve. Not yet collaborating with grassroots organizations doing this work in your state? SiX is happy to connect. 

Climate Action is Economic Justice

The climate crisis is intrinsically tied to economic justice. Rather than embrace a just transition to clean energy, the fossil fuel industry is leveraging state legislatures to preempt local solutions, shield themselves from accountability, and shift costs to consumers. A few examples: 

Renters: Climate change threatens 41% of rental homes. According to a Harvard University report about 3.2 million units with rents below $600 are in at-risk areas. When natural disasters hit, communities often see rent and eviction increases. Corporate investors are known to swoop in, buy vacated property and raise rents. 

Property Insurance: As legislatures serve fossil fuel lobbyists and ignore the climate crisis, property insurance companies respond by either hiking up rates or leaving state markets entirely. This isn't just a problem for coastal communities; it impacts homeowners, renters, and local landlords nationwide, escalating both costs and risks.

Worker Safety: Outdoor workers, such as those in agriculture, warehouses, construction and hospitality are grappling with severe heat and its devastating consequences. As local governments partner with workers to find solutions, corporations are pushing abusive statewide preemptions that ban local heat stress protections like water, shade, and breaks.

Energy: Monopoly investor-owned utility companies dominate state energy markets and legislatures, raising rates, preempting publicly-owned power, blocking access to the courts, sabotaging solar competitors, and undermining democracy.

How We Got Here: 

The climate crisis did not happen by accident; it’s not the result of inevitable forces. It is a product of deliberate policy decisions pushed by the fossil fuel industry. The industry has persuaded some policymakers to support its agenda even though we know that states with the highest increases in wind power and solar energy since 2010 – Iowa, Kansas, New Mexico, Oklahoma, and Texas – have all seen customer rates rise slower than inflation because they reduced exposure to fossil fuel costs. However, deceptive "greenwashing" marketing promotes false solutions like “clean coal,” “renewable natural gas,” and “biogas,” which exacerbate the climate crisis. This Climate Integrity report helps identify and counter tactics used by fossil fuel interests to evade accountability. 

How Legislators can Act on Climate by Challenging Corporate Power 

The United States Supreme Court’s decision to overturn the Chevron Deference doctrine at the federal level makes the work in the states even more essential. The fossil fuel industry leverages state legislatures to maintain monopoly power, secure corporate tax giveaways, and undermine our democracy – making more profits while exacerbating the climate crisis. In addition to advancing a justice transition to clean, renewable energy, legislators and organizers are tackling the root cause of the climate crisis in states across the country in a myriad of ways: 

Anti-Monopoly Reform: The Institute for Local Self-Reliance published a new report titled “True Costs of the Monopoly Utility Model” detailing the harms of monopoly investor-owned utilities and how states can act. 

Accountability in the Courts: A recent poll shows that the majority of U.S. voters support holding Big Oil accountable for its climate lies in court – as in recent California litigation that advocates are referring to as People of the State of California v. Big Oil. 

Direct Pay: The IRS issued regulations on direct pay of clean energy credits for state and local governments and tax-exempt organizations. Check out our legislator guide to building jobs and sustainable public energy and our stakeholder webinar, as well as this teaser video from our partners at the Congressional Progressive Caucus Center.

Exposing Private Equity: The first-ever Private Equity Energy Tracker was just updated by the Private Equity Climate Risks data consortium project. The Tracker showcases a list of the energy holdings of the largest private equity firms globally, compiling their energy deals in one, easy-to-access database.  

Heat Stress Protections: States like California and Maryland are putting forward heat stress protections for outdoors workers, and the US Department of Labor just announced a forthcoming proposed rule at the federal level. 

Money in Politics: A growing movement aims to restrict how utilities can use customer money to further their political goals through lobbying, trade association dues, and charitable giving. At least eleven states filed legislative proposals last session to prohibit investor-owned utilities from using customer funds to support political activities. 

Property Insurance: Insurance is a key channel through which climate risk is transmitted through the financial system, and it is almost entirely regulated at the state level. This report by Climate Cabinet Education summarizes state policy interventions. 

Public Power: Consumer-owned utilities (COUs) are providing reliable electricity to U.S. customers, as they have since the 1890s. Today, about 2,900 “municipal” and  “cooperative” COUs serve 91 million Americans. COUs often outperform investor-owned monopoly utility companies (IOUs) because of one essential difference: IOUs serve their shareholders while COUs serve their ratepayer/owners. 

Renters’ Rights: Support is also growing for eviction moratoriums during natural disasters – along with other essential tenant protections like required air and heat maintenance, just cause, and right to counsel – that can help protect renters from extreme weather and keep people in their homes. Estimates show measures such as rental assistance and eviction moratoriums helped more than a million households avoid losing their homes due to the COVID-19 pandemic.

Revenue: The Center for Policy and Budget Priorities released a brief on worldwide combined reporting (WWCR), a policy solution for states that stops large multinational corporations from dodging state income taxes by shifting hundreds of billions of dollars in profits earned in your state into tax-haven states and nations.  

Interested in any of these organizing efforts? SiX can connect you with organizers in your state, legislators, organizers, and climate caucuses in states across the country, as well as national experts. 

SiX’s Cohort for Rural Opportunity & Prosperity (CROP) is tackling the climate crisis impact on agriculture & food systems