Climate change isn't an issue for politicians alone - it's time for businesses and the legal profession to step up

Lawyers have a significant role not just in advising on incoming energy and climate regulation, but also in developing new structures and precedents, and in advising on new aspects of corporate governance and risk management.

For decades politicians have looked to a cadre of scientists, economists, think tanks and NGOs for help in devising international and national responses to the challenges of climate change. There were relatively few opportunities for business or the legal profession to influence the debate and there seemed to be little appreciation of how remote the world of UN climate negotiations seemed to the general public and to many in business. Often seen as a political issue, in order to implement climate change policies effectively industry needs to be instructed and incentivised by a body of clear, collective regulation if it is to make the long term investments required to lower our dependency on fossil fuels and lower global carbon emission.

The scale and the uncertainties around climate change meant that regulating was never going to be easy. The global downturn has also, inevitably, diminished the vitality of the debate. Governments, to their credit, have continued to regulate but have in some cases appeared slow to appreciate the importance of commercial certainty. There has also been a tendency to underestimate the impact of regulatory tinkering on willingness to invest. Many policy initiatives have involved a considerable learning process in relation to the interaction of environmental constraints and market forces. This has included regimes for trading carbon credits, which required the elision of environmental and financial markets expertise, and schemes for reducing emissions from the built environment which have struggled with the implications of landlord - tenant arrangements.

In response to these challenges, the Legal Sector Alliance on Climate Change, an association of 270 commercial law firms, has argued publicly for effective regulation in relation to climate change and low carbon energy. In its most recent communiqué eight principles were set out that policy makers should take into account in formulating new policy and regulation, which includes recommendations relating to investment incentives and the standardisation of products and reporting standards.

There are signs that the mood is shifting towards working with business. Private sector consultation on the development of new UN mechanisms is being encouraged. COP 19 in Warsaw has been promoted as a "business COP", with Poland encouraging the UN to bridge the gap between the policies being shaped through negotiations and the role of business in implementing and financing these obligations. Lawyers can decode and help shape the debate in these areas.

Because the scientific community is in broad agreement on the reality of climate change, it is a risk that companies have to consider as a matter of good management. This makes climate change one among many factors that businesses consider in relation to new projects, transactions, or as part of their risk management and governance processes.

For most sectors climate change is an area comparable to other more traditional issues on which lawyers advise. For the energy sector and for energy intensive business, the impact of the policy response to climate change is likely to be more profound, albeit over a long timescale.  While the primary energy sources for the foreseeable future are fossil fuels, the market share for renewables continues to grow and there is an developing focus on the energy efficiency of buildings, industrial operations and products. These changes are creating new business models, additional issues in transactions and operational challenges. For these industries, lawyers have a significant role not just in advising on incoming regulation, but also in developing new structures and precedents, and in advising on new aspects of corporate governance and risk management. So as the volume of regulation relevant to climate change evolves, expect the role of lawyers to be much broader and more important.

The Legal Sector Alliance on Climate Change has set out eight principles for formulating new policy and regulation. Photograph: Getty Images.

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The High Court is right to rule the benefit cap is "unlawful" for lone parents with small children

The idea this ill-judged policy helps people transition from the social security system into paid work has been exposed as a myth. 

Thursday’s High Court decision that the benefit cap is "unlawful" for lone parents with children under the age of two is another blow to the Tories failing austerity agenda. It is failing on its own terms, it's failing our communities, and it’s failing the most vulnerable in our country – including the victims of domestic violence and those facing homelessness.

The judgment handed down by Mr Justice Collins was damning. Upon considering the impact of the benefit cap, he concluded that “real misery is being caused to no good purpose.”

The government’s claims that this ill-judged policy helps people transition from the social security system into paid work have been exposed as a myth. Seven out of eight households hit by the cap have very young children, are too ill to work or have a work-limiting disability. The spiralling cost of childcare has left many unable to find or afford good quality childcare in order to allow them to work. In some cases, families lose up to £115 a week, pushing them into deeper into poverty.

Labour warned the government of the impact this policy would have on lone parents with very young children during the passage of the Welfare Reform and Work Act. We tabled amendments to exempt lone parents with young children. They refused to listen and thousands of families have been pushed into poverty as a result, including survivors of domestic violence.

Many parents are perpetually stuck in insecure, poorly paid work on a zero hours contract, with the majority of their earnings spent on childcare. Alternatively they are unable to find work which fits around their childcare responsibilities and are then subjected to the benefit cap resulting in families struggling to make ends meet. Just under 320,000 children now live in households likely to be affected by the new lower cap, which was introduced last November. This is at a time when one in four of our children are growing up in poverty.

Despite these obvious barriers facing families with young children, particularly lone parents, it has taken a brave group of campaigners to challenge a government which lacked the foresight to see the real damage they are inflicting with another one of their disastrous austerity cuts. The Government’s own evaluations show that only 16 per cent of families impacted by the benefit cap move into paid work compared to 11 per cent who would have moved into work anyway.

For too long, this government has pushed our children into a lifetime of poverty, as punishment for parental circumstances, whilst continuing to give hand-outs to the privileged few.

What a difference a year makes. Only last July, the Prime Minister on the steps of Downing Street pledged to “fight the burning injustices” facing our society. Not only has she failed spectacularly, her government continue to pursue policies that are further entrenching these injustices.

It is clear that the benefit cap hits the poorest in our society the hardest. This judgment is a further blow to Theresa May’s unstable minority government and I implore the Prime Minister to accept the High Court's judgement and end this discriminatory policy against lone parent families.

This is the latest in a series of judgments found against the government in relation to their austerity programme. After rulings on the bedroom tax, Personal Independence Payments and now the benefit cap, the government should now accept the ruling instead of spending yet more taxpayers’ money on an appeal. 

Labour has proudly stood against the benefit cap, its discrimination against parents with young children and the government’s cruel austerity programme which has caused too many people real misery.

A Labour government would immediately implement the High Court ruling and only a future Labour government will transform the social security system so that, like the NHS, it is there for the many in our time of need.

 

Debbie Abrahams is shadow work and pensions secretary.

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