The business – government nexus: Impact of government actions and legislation on business responses to climate change

Australia has committed to reducing emissions under the Paris Agreement by 2030, in alignment with the United Nations’ (UN) Sustainability Development goal (SDG) climate action. This article investigates the responses of Australian high-emission businesses to Australian government action and legislation in relation to climate change, specifically the carbon tax, and how this knowledge can assist in delineating future carbon legislation. A qualitative study of the responses of seventeen high emission businesses and three industry associations to carbon legislation during the implementation of the carbon tax in Australia identified the use of resistive, reactive or cooperative strategies by the businesses. Issues related to carbon legislation identified by businesses included differences in time orientation, multiple regulations, political uncertainty, international positioning and the need for long term and consolidated policies. Given these findings, this article argues that well designed top-down legislative measures are necessary to steer businesses towards a carbon neutral regime