Being Green For Green

The notion that big business is in any way inclined to conservative political positions has long ago been proved false. Corporations and the CEOs who run them care about one and one thing only: profits. And they will support any political position that helps improve their firm's bottom line.

This week, the media was all aflutter when the Climate Action Partnership, a group of ten large companies, called for a cap on carbon dioxide emmissions. But, as Kimberly Strassel shows in today's Opinion Journal Potomac Watch (free for all!), it wasn't as if these corporations had suddenly seen the light on global warming:

There was a time when the financial press understood that companies exist to make money. And it happens that the cap-and-trade climate program these 10 jolly green giants are now calling for is a regulatory device designed to financially reward companies that reduce CO2 emissions, and punish those that don't.

Four of the affiliates--Duke, PG&E, FPL and PNM Resources--are utilities that have made big bets on wind, hydroelectric and nuclear power. So a Kyoto program would reward them for simply enacting their business plan, and simultaneously sock it to their competitors. Duke also owns Cinergy, which relies heavily on dirty, CO2-emitting coal plants. But Cinergy will soon have to replace those plants with cleaner equipment. Under a Kyoto, it'll get paid for its trouble.

DuPont has been plunging into biofuels, the use of which would soar under a cap. Somebody has to cobble together all these complex trading deals, so say hello to Lehman Brothers. Caterpillar has invested heavily in new engines that generate "clean energy." British Petroleum is mostly doing public penance for its dirty oil habit, but also gets a plug for its own biofuels venture.

Finally, there's General Electric, whose CEO Jeffrey Immelt these days spends as much time in Washington as Connecticut. GE makes all the solar equipment and wind turbines (at $2 million a pop) that utilities would have to buy under a climate regime. GE's revenue from environmental products long ago passed the $10 billion mark, and it doesn't take much "ecomagination" to see why Mr. Immelt is leading the pack of climate profiteers.

CEOs are quick learners, and even those who would get smacked by a carbon cap are now devising ways to make warming work to their political advantage. The "most creative" prize goes to steel giant Nucor. Steven Rowlan, the company's environmental director, doesn't want carbon caps in the U.S.--oh, no. The smarter answer, he explains, would be for the U.S. to impose trade restrictions on foreign firms that aren't environmentally clean. Global warming as foil for trade protectionism: Chuck Schumer's dream.

No, they haven't seen the light. But they definitely have seen the green.