THE ROLE OF FOUNDATIONS IN PRESERVING A LIVABLE CLIMATE

"As governments become more paralyzed in addressing issues related to the environment and climate change, there is an expectation and responsibility for philanthropy to step into a more engaged leadership role."

--Steve Gunderson, Executive Director on the Council on Foundations

Effective climate action is the most urgent imperative now facing humanity, overshadowing all other national and global challenges. Indeed, improvements made in public health, international security, food security, eradicating poverty and many other areas will unravel without climate stabilization.

The Environmental Grantmakers Association encourages funders to use a climate lens to consider climate change in all strategic decisions. Other philanthropic organizations and advisors are also calling for donors to step up their giving for climate initiatives. Foundations have increased U.S. climate-related giving five-fold since 1997. Some are making very sizable contributions, such as the William and Flora Hewlett Foundation's five-year commitment of over $500 million or the David and Lucile Packard Foundation's $70 million in 2008. Yet this all adds up to only two percent of total giving and five percent of the amount given for health and education, according to Arabella Advisors, a philanthropy service firm.

What is the most effective area of contribution, in the effort to turn the situation around and to preserve a livable world for humanity? How can donors even begin to decide where to focus, when both the sources and the effects of climate change are already so varied and widespread? Foundations are funding a broad range of projects, in areas such as energy policy, energy conservation, mitigation and public education. The Foundation Center's report, "Climate Change: The US Foundation Response," finds that, "Foundation funding targets all facets of the global climate crisis, from reducing global greenhouse gas emissions to studying the role of tropical rain forests in determining the global carbon balance to supporting a national commission on energy policy."

Certainly mitigation is needed at all levels, but many of these projects are merely incremental within the context of what is needed at the national and global scale. First and foremost, we must have correct national policies in order to drive the transition to a carbon-free future. Otherwise, fossil fuels will remain dominant and cook the planet. It is essential that the US quickly enacts an increasing price on carbon and takes the lead in embracing a 2°C limit. We must also phase out coal within two decades. All of this points to an all-out mobilization, needed now—or will we not avert runaway climate chaos. Yet our paralyzed political situation makes these achievements seem highly unlikely.

Rather than just adding individual climate projects to their portfolios, foundations could participate at the largest level, as game-changers in breaking the deadlock and changing the entire scenario. Going further, the foundations may even be requisite for this to happen. How can funders possibly play this role, even smaller foundations that cannot make large grants?

The Association of the Tree of Life (ATL) is calling for an entirely new, bold response to leverage the transformation needed to save a livable climate—we believe the only plausible route now is to mobilize a critical mass of American people in a compelling grassroots campaign, with the voice and support of a consortium of our foundations. They alone have the influence, credibility and resources to be heard.

This is a call for our foundations to step into a visible leadership role in the climate movement. A higher degree of advocacy is required to advance effective climate policy. Arabella Advisors is also urging donors to take climate action through advocacy and aims to dispel a common myth that foundations cannot support it:

"According to experts, advocacy is a defining characteristic of high-impact charities, and supporting it can provide big bang for a donor’s buck…Advocacy is often confused with lobbying, which is only one form of advocacy...Advocacy also includes community organizing, working with coalitions, media outreach and nonpartisan voter engagement. By informing and empowering multiple voices, all of these activities can have a tremendous impact on society’s biggest challenges."

We must find new ways of working together to create the needed transformation. These are exceptional times that call for unprecedented coordination and organization. Consortiums of foundations are nothing new. What distinguishes the approach called for by ATL is the degree of visible leadership by the foundations, in collaboration with an association of nonprofits, without becoming too centralized.

An arrangement is needed that unites many entities in working towards a few shared goals, while allowing groups to create their own manner of participation and funding requests. Agreement to basic goals and principles knits all the entities together within the Association for the Tree of Life. ATL will monitor the various groups' funding and aggregate the needed reporting for the foundations. Striking a balance between cohesion and diversity, with a minimal amount of centralized coordination, will create a flexible and powerful collective voice to achieve effective climate action.

An example that adds plausibility is the RE-AMP network, created between funders and nonprofits in the Midwest, with the goal of reducing regional CO2 emissions 80% by 2050. The process involves 14 funders and 112 nonprofits as equal partners. This highly inventive collaboration has proven to be resilient and fluid. It allows organizations to engage in united efforts without becoming too centralized. Leadership is cultivated at many levels. RE-AMP has succeeded in numerous objectives, such as achieving state-level energy legislation and local grassroots efforts that halted several planned coal plants.

RE-AMP members are among those who understand there is nothing more urgent than stopping coal—the king contributor to climate chaos. In the US, burning coal emits 40 percent of CO2 emissions. Leading climatologists, including James Hansen, are saying that our top aim must be to phase out coal by 2030, to save a livable world for our children. Arabella has said: "Targeting coal plants is a particularly high-impact approach for reducing greenhouse gas emissions." Another philanthropic advisory group, Positive Ventures, has especially focused on stopping coal.

In a major new development, New York City mayor Michael Bloomberg has pledged $50 million to the Sierra Club's Beyond Coal campaign. Bloomberg is among the wealthiest people in the world. This is significant in terms of the donation size, in telling the world just how urgent this issue is and in setting a precedent for other benefactors to follow.

In summary, to achieve a national carbon price and to stop coal, a coordinated leadership, shared by the national foundations and nonprofits is essential. Our political situation and policies will shift when enough Americans shift. Nothing less than a national teach-in combined with coordinated direct action could create this cultural transformation in our country. Such a major initiative will require much financial support and reiteration from the foundations. And in return, the foundations need the on-the-ground efforts of the grassroots organizations.

The ATL has the experience and human resources to mobilize the campaign—gathering many groups under one "tent"—to leverage transformational change and to effect the required policy changes in the tight timeframe available. A consortium of national foundations has the credibility, influence and resources to call for and support the campaign.

LINKS

The Key is Coal, by Joanna Messing, President of Positive Ventures and by Paul and Eilleen Growald (Growald Family Fund), winner of an essay contest hosted by Alliance Magazine

Confronting the Climate Challenge, Environmental Grantmakers Association

Climate Change: The U.S. Foundation Response, The Foundation Center

Taking Action on Climate Change, The William and Flora Hewlett Foundation

RE-AMP network 

On the leading edge: an overview of RE-AMP, Fresh Energy

Transformer: How to build a network to change a system: A case study of the RE-AMP Energy Network, The Monitor Institute

Philanthropy's Role in Fighting Climate Change, the William and Flora Hewlitt Foundation 

Policy Advocacy: Taking action through advocacy to propel climate policy forward, Arabella Advisors

Climate Change: Think Globally, Advocate Locally, Arabella Advisors

Climate Works Foundation

The Energy Foundation

In 2010, the Barr Foundation pledges $50 million over the next 5 years to Boston-area nonprofits & efforts that fight climate change – previous gifts were to be kept anonymous.

In 2011, Mayor Bloomberg donates $50 million to the Sierra Club's Beyond Coal campaign.