Steven Donziger speaks at a “Free Donziger” rally held in front of the Manhattan Court House in New York City on October 1, 2021. (Photo: Tayfun Coskun/Anadolu Agency via Getty Images)
“We are deeply concerned about the chilling effect this case will have on all advocates working on behalf of other frontline communities, victims of human rights violations, and those seeking environmental justice.”
More than 30 Democratic members of Congress on Wednesday called on outgoing U.S. President Joe Biden to pardon environmental and human rights lawyer Steven Donziger, who endured nearly 1,000 days in prison and house arrest after successfully representing Ecuadoreans harmed by Big Oil’s pollution of the Amazon rainforest.
In a letter to Biden led by Rep. Jim McGovern, (D-Mass.), 33 House and Senate Democrats plus Independent U.S. Sen. Bernie Sanders of Vermont noted the “troubling legal irregularities” in Donziger’s case, which have been “criticized as unconstitutional or illegal by three federal judges, 68 Nobel laureates, and five high-level jurists from the Working Group on Arbitrary Detention of the United Nations.”
Donziger represented a group of Ecuadorean farmers and Indigenous people in a 1990s lawsuit against Texaco—which was later acquired by Chevron—over the oil company’s deliberate dumping of billions of gallons of carcinogenic waste into the Amazon. He played a key role in winning a $9.5 billion settlement against Chevron in Ecuadorian courts.
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However, Chevron fought Donziger in the U.S. court system, and when the attorney refused to disclose privileged client information to the company, federal District Judge Lewis Kaplan—who was invested in Chevron—held him in misdemeanor contempt of court. Loretta Preska, Kaplan’s handpicked judge to preside over Donziger’s contempt trial, is affiliated with the Chevron-funded Federalist Society.
Donziger’s case drew worldwide attention and solidarity, with human rights experts and free speech groups joining progressive U.S. lawmakers in demanding his release. He was released in April 2022 after 993 days in prison and house arrest.
“Donziger is the only lawyer in U.S. history to be subject to any period of detention on a misdemeanor contempt of court charge,” the 34 lawmakers wrote. “We believe that the legal case against Mr. Donziger, as well as the excessively harsh nature of the punishment against him, are directly tied to his prior work against Chevron. We do not make this accusation lightly or without evidentiary support.”
The legislators warned:
Notwithstanding the personal hardship, this unprecedented legal process has imposed on Mr. Donziger and his family, we are deeply concerned about the chilling effect this case will have on all advocates working on behalf of other frontline communities, victims of human rights violations, and those seeking environmental justice. Those who try to help vulnerable communities will feel as though tactics of intimidation—at the hands of powerful corporate interests, and, most troublingly, the U.S. courts—can succeed in stifling robust legal representation when it is needed most. This is a dangerous signal to send.
“Pardoning Mr. Donziger,” the lawmakers added, “would send a powerful message to the world that billion-dollar corporations cannot act with impunity against lawyers and their clients who defend the public interest.”
The lawmakers join more than 100 environmental and human rights groups that have urged Biden to pardon Donziger.
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In an April opinion piece published by Common Dreams, Donziger contended that “I need this pardon because I am the only person in U.S. history to be privately prosecuted by a corporation.”
“More specifically, the government (via a pro-corporate judge) gave a giant oil company (Chevron) the power to prosecute and lock up its leading critic,” he continued. “As a result of this unprecedented and frightening private prosecution, I still cannot travel out of the country and I have been prohibited from meeting with clients I have represented for over three decades. Nor can I practice law, maintain a bank account, or earn a livelihood.”
“No matter where one stands on the political spectrum,” Donziger added, “we should all be able to agree that what happened to me should not happen to anybody in any country that adheres to the rule of law.”
The appeal for a Donziger pardon comes amid a wave of eleventh-hour pleas from lawmakers for Biden to grant clemency to figures ranging from WikiLeaks founder Julian Assange and National Security Agency whistleblower Edward Snowden to Indigenous activist Leonard Peltier—often described as the nation’s longest-jailed political prisoner—and federal death row inmates including Billie Jerome Allen, who advocates say was wrongly convicted of murder.
A small tax on just seven of the world’s biggest oil and gas companies could grow the UN Fund for Responding to Loss and Damage by more than 2000% and help address the costs of extreme weather events, according to new analysis published today by Greenpeace International and Stamp Out Poverty. The organisations are calling for a long term global tax on fossil fuel extraction, with year-on-year increases, combined with taxes on excess profits and other levies.
A ‘Climate Damages Tax’ would put a cost on every tonne of carbon emitted by the coal, oil and gas extracted – starting at $5 per tonne and rising each year thereafter. If it was imposed on ExxonMobil, Shell, Chevron, TotalEnergies, BP, Equinor and ENI it could raise $15 billion in the first year alone to help the world’s most climate-vulnerable countries pay for the escalating cost of damage caused by climate change. Currently, just $702 million has been pledged to the loss and damage fund, while the combined profits of those fossil fuel companies exceeds $148 billion.
Greenpeace activists display a billboard during a protest outside Shell headquarters on July 27, 2023 in London. (Photo: Handout/Chris J. Ratcliffe for Greenpeace via Getty Images)
Earlier this month, Barbados Prime Minister Mia Mottley, French President Emmanuel Macron and Kenyan President William Ruto stated their support for a Climate Damages Tax.
The briefing also highlights the financial costs of some of this year’s worst weather events that have been attributed to climate change, totalling over $64bn. These include Hurricane Beryl, Hurricane Helene, the heatwave in India in May, Typhoon Carina/Gaemi, the floods in Brazil in May, and the floods in Kenya and Tanzania in April. The costs of damage from the disasters surveyed range from US$2.9bn (Typhoon Carina) to US$ 25bn (heatwaves in India), and present just a fraction of the total cost of loss and damage globally over the last year.
A Climate Damages Tax imposed only on wealthy OECD countries could play an essential role in helping the poorest and most vulnerable to rebuild after climate-related disasters. Increasing annually by US$5 per tonne of CO2-equivalent based on the volumes of oil and gas extracted, the tax could raise an estimated US$900 billion by 2030 to support governments and communities around the world as they face growing climate impacts.
“While oil and gas giants keep raking in grotesque levels of profit from exploiting resources, the damages resulting from the industry’s operations are disproportionately borne by people who did not cause the crisis,” said David Hillman, Director of Stamp Out Poverty. “A climate damages tax – along with other levies on fossil fuels and high-emitting sectors – will make polluters pay for the cost of climate impacts, as well as supporting workers and affected communities in the transition to clean energy, jobs, and transport.”
“Who should pay? This is fundamentally an issue of climate justice and it is time to shift the financial burden for the climate crisis from its victims to the polluters behind it,” said Abdoulaye Diallo, Co-Head of Greenpeace International’s Stop Drilling Start Paying campaign. “Our analysis lays bare the scale of the challenge posed by climate loss and damage and the urgent need for innovative solutions to raise the funds to meet it. We reject Big Oil’s assault on people and democracy and call on governments worldwide to adopt the Climate Damages Tax and other mechanisms to extract revenue from the oil and gas industry.”
The Loss and Damage Fund was announced at COP27 in Egypt to help developing countries pay for impacts of natural disasters caused by climate change. Recently renamed the Fund for Responding to Loss and Damage (FRLD), it currently has US$702 million in pledged funds. According to Greenpeace International and Stamp Out Poverty’s calculations, a Climate Damages Tax levied on seven major international oil and gas companies would add in the first year alone US$15.02 billion, corresponding to over 21 times what is currently pledged to the fund.
Experienced climbers scale a rock face near the historic Dumbarton castle in Glasgow, releasing a banner that reads “Climate on a Cliff Edge.” One activist, dressed as a globe, symbolically looms near the edge, while another plays the bagpipes on the shores below. | Photo courtesy of Extinction Rebellion and Mark Richards
CounterSpin interview with Derek Seidman on insurance and climate
Janine Jackson interviewed writer/researcher Derek Seidman about insurance and climate for the October 4, 2024, episode of CounterSpin. This is a lightly edited transcript.
Janine Jackson: As we watch images of devastation from Hurricane Helene, it’s hard not to hold—alongside sadness at the obvious loss—anger at the knowledge that things didn’t have to be this way. Steps could have been, still could be taken, to mitigate the impact of climate change, and making weather events more extreme, and steps could be taken that help people recover from the disastrous effects of the choices made.
As our guest explains, another key player in the slow-motion trainwreck that is US climate policy—along with fossil fuel companies and the politicians that abet them—is the insurance industry, whose role is not often talked about.
Derek Seidman is a writer, researcher and historian. He contributes regularly to Truthout and to LittleSis. He joins us now by phone. Welcome to CounterSpin, Derek Seidman.
Home Insurers Cut Natural Disasters From Policies as Climate Risks Grow:
Some of the largest US insurance companies say extreme weather has led them to end certain coverages, exclude natural disaster protections and raise premiums.
I think that drops us right into the heart of the problem you outline in that piece. What’s going on, and why do you call it the insurance industry’s “self-induced crisis”?
DS: Thank you. Well, certainly there is a growing crisis. The insurance industry is pulling back from certain markets and regions and states, because the costs of insuring homes and other properties are becoming too expensive to remain profitable, with the rise of extreme weather. And so we’ve seen a lot of coverage in the past few months over this growing crisis in the insurance industry.
Derek Seidman: “The insurance industry itself is a main actor in driving the rise of extreme weather, through its very close relationship to the fossil fuel industry.”
But one of the critical things that’s left out of this is that the insurance industry itself is a main actor in driving the rise of extreme weather, through its very close relationship to the fossil fuel industry. And in this narrative in the corporate media, the insurance industry on the one hand and extreme weather on the other hand, are often treated like they’re completely separate things, and they’re just sort of coming together, and this “crisis” is being created, and it’s a real problem that the connections aren’t being made there.
So I guess a couple things that should be said, first, are that the insurance industry is the fossil fuel industry, and its operations could not exist without the insurance industry.
We can look at that relationship in two ways. So first, of course, is through insurance. The insurance giants, AIG, Liberty Mutual and so on and so on, they collectively rake in billions of dollars every year in insuring fossil fuel industry infrastructure, whether that’s pipelines or offshore oil rigs or liquified natural gas export terminals. This fossil fuel infrastructure and its continued expansion, this simply could not exist without underwriting by the insurance industry. It would not get its permit approvals, it would just not be able to operate, it couldn’t attract investors and so on. So that’s one way.
Another way is that, and this is something a lot of people might not be aware of, but the insurance industry is an enormous investor in the fossil fuel industry. Basically, one of the ways the insurance industry makes money is it takes the premiums, and it pools a chunk of it and invests those. So it’s a major investor. And the insurance industry, across the board, has tens of billions of dollars invested in the fossil fuel industry.
And this is actually stuff that anybody can go and look up, because some of it’s public. So, for example, the insurance giant AIG, because it’s a big investor, it has to disclose its investments with the SEC. And earlier this year, AIG disclosed that, for example, it had $117 million invested in ExxonMobil, $83 million invested in Chevron, $46 million in Conoco Phillips, and so on and so on.
So, on the one hand, you have this hypocritical cycle where the insurance industry is saying to ordinary homeowners, who are quite desperate, we need to jack up the price on your premiums, or we need to pull away altogether, we can’t insure you anymore—while, on the other hand, it’s driving and enabling and profiting from the very operations, fossil fuel operations, that are causing this extreme weather in the first place, that the insurance industry is then using to justify pulling back from insuring just regular homeowners.
JJ: This is a structural problem, clearly, that you’re pointing to, and you don’t want to be too conspiratorial about it. But these folks do literally have dinner with one another, these insurance executives and the fossil fuel companies. And then I want to add, you complicate it even further by talking about knock-on effects, that include making homes uninsurable. When that happens, well, then, that contributes to this thing where banks and hedge funds buy up homes. So it’s part of an even bigger cycle that folks probably have heard about.
DS: Yeah, absolutely. This whole scenario, it’s horrible, because it impacts homeowners and renters. If you talk to landlords, they say that the rising costs of insurance are their biggest expense, and they are, in part, taking that out on tenants by raising rents, right?
But it also really threatens this global financial stability. I mean, with the rise of extreme weather, and homes becoming more expensive to insure, or even uninsurable, home values can really collapse. And when they collapse, aside from the horrific human drama of all that, banks are reacquiring foreclosed homes that, in turn, are unsellable because of extreme weather, and they can’t be insured.
The big picture of all this is that it leads to banks acquiring a growing amount of risky properties, and it can create a lot of financial instability. And we saw what happened after 2008, as you mentioned, with private equity coming in and scooping up homes. And so, yeah, it creates a lot of systemic financial instability, opens the door for financial predators like private equity and hedge funds to come in.
JJ: And it seems to require an encompassing response, a response that acknowledges the various moving pieces of this. I wonder, finally, is there responsive law or policy, either on the table now or just maybe in our imagination, that would address these concerns?
DS: There are organizers that are definitely starting to do something about it, and there are some members of Congress that are also starting to do something about it.
For this story, I interviewed some really fantastic groups. One of them is Insure Our Future, and this is sort of a broader campaign that is working with different groups around the country, and really demanding that insurers stop insuring new fossil fuel build-out, that they phase out their insurance coverage for existing fossil fuels, for all the reasons that we’ve been talking about today.
At the state level, there’s groups that are doing really important and interesting things. So one of the groups that I interviewed was called Connecticut Citizen Action Group, and they’ve been working hard, in coalition with other groups in Connecticut, to introduce and pass a state bill that would create a climate fund to support residents that are impacted by extreme weather. (Connecticut has seen its fair share of extreme weather.) And this fund would be financed by taxing insurance policies in the state that are connected to fossil fuel projects. So it’s also a disincentive to invest in fossil fuels.
In New York, a coalition of groups and lawmakers just introduced something called the Insure Our Communities bill. And this would ban insurers from underwriting new fossil fuel projects, and it would set up new protections for homeowners that are facing extreme weather disasters.
I spoke to organizers in Freeport, Texas, with a group called Better Brazoria, and these are people that are on the Gulf Coast, really on the front lines. And Better Brazoria is just one of a number of frontline groups along the Gulf Coast that are organizing around the insurance industry, and they’re trying to meet with insurance giants, and say to them, “Look, what you’re doing is, we’re losing our homeowner insurance while you’re insuring these risky LNG plants that are getting hit by hurricanes, and fires are starting,” and trying to make the case to them that this is just not even good business for them.
And then, more recently, you’ve seen Bernie Sanders and others start to hold the insurance industry’s feet to the fire a little more, opening up investigations into their connection to the fossil fuel industry, and how this is creating financial instability.
So I think this is becoming more and more of an issue that people are seeing is a real problem for the financial system, and it’s something that we should absolutely think about when we think about the climate crisis, and the broader infrastructure that’s enabling the fossil fuel industry to exist, and continue its polluting operations that are causing the climate crisis and extreme weather. So I think we’re going to see only more of this going forward.
JJ: All right, then, we’ll end it there for now.
We’ve been speaking with Derek Seidman. You can find his article, “As Florida Floods, Insurance Industry Reaps What It Sowed Backing Fossil Fuels,” on Truthout.org. Thank you so much, Derek Seidman, for joining us this week on CounterSpin.
DS: Thank you.
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Far-right industry allies with ties to Chevron have mounted an “unprecedented” pressure campaign calling on the Supreme Court to stop a potentially historic climate deception lawsuit against oil majors from going to trial. Graphic design by Tess Abbot
Fossil fuel interests are deploying unprecedented strategies to hide evidence of companies’ deception and block liability lawsuits before they reach trial.
This article by ExxonKnews is published here as part of the global journalism collaboration Covering Climate Now.
In the face of mounting scrutiny from local, state, and federal officials, fossil fuel companies and their allies are deploying a range of tactics to obstruct ongoing lawsuits and investigations concerning evidence that the industry has misled the public about the harms it knew its products would cause to the climate, environment, and human health.
Far-right industry allies with ties to Chevron have mounted an “unprecedented” pressure campaign calling on the Supreme Court to stop a potentially historic climate deception lawsuit against oil majors from going to trial. Republican attorneys general are separately urging the Supreme Court to throw out similar climate fraud lawsuits from five states. Plastics industry trade associations are suing the California state attorney general’s office to block an investigation into whether oil companies lied about plastic recycling. And fossil fuel giants and their trade groups have responded to congressional subpoenas with highly redacted records and “baseless” First Amendment legal defenses.
“I think we’re seeing an escalation by the industry to do anything it can to avoid being held accountable for the consequences of climate change,” said Lisa Graves, executive director of investigative watchdog group True North Research and an expert on dark money special interest groups. “It continues to try to thwart efforts to try to mitigate climate change and it continues to try to stop efforts to get any compensation for the harms it has caused, not just through the burning of fossil fuels but also by the delay and deceit that it has promoted through front groups.”
State and local climate lawsuits, which accuse oil and gas majors of lying about the dangers of fossil fuels and seek to hold them accountable for the resulting damages, are advancing in state courts despite the industry’s efforts. Most recently, a Colorado judge denied nearly all motions by ExxonMobil and Suncor Energy to dismiss the City and County of Boulder’s case against them.
It’s the fifth time to date that a court has rejected Big Oil’s efforts to dismiss climate accountability lawsuits — bringing the companies closer to facing trial and potentially billions of dollars in liability. If any of the cases go to trial, said Michael Gerrard, director of the Sabin Center for Climate Change Law at Columbia University, “it will shine a very harsh light on the fossil fuel companies and it could lead to crushing monetary judgments.”
“Clearly the defendants here are using everything they can think of to derail these cases,” Gerrard said. That attitude has been most evident in Big Oil’s response to a lawsuit from Honolulu, which could be among the first communities to put the companies on trial.
In February, oil company defendants — including Exxon, Chevron, BP, and Shell — petitioned the U.S. Supreme Court to review a Hawai‘i state Supreme Court ruling that allowed Honolulu’s case to move toward trial. The case, the companies argued in their petition, is preempted by federal law and should be dismissed.
But after traditional legal arguments have failed to shield the industry to date, allies seem to be turning to more extreme and novel measures.
Leonard Leo to the Rescue?
In the weeks and months before the Supreme Court was scheduled to hear Big Oil’s petition in Honolulu’s lawsuit, a flood of social media ads and op-eds called for the Supreme Court justices to take up — and throw out — the case.
“To end this nuisance charade, the Supreme Court needs to take up the Honolulu case and declare once and for all that public nuisance is for local issues, not global climate change,” reads the narrator of one such video ad posted to X.
The name behind that ad, the Alliance for Consumers, is part of an organization called the Concord Fund, formerly known as the Judicial Crisis Network. Those groups, Graves and others have pointed out, are projects of billionaire Leonard Leo, head of the far-right legal advocacy group the Federalist Society and known as the architect of the current Supreme Court. CRC Advisors — one of the Leo-backed companies in the effort — appears to have had Chevron, a defendant in Honolulu’s case, as a client.
The fossil fuel industry also helped fund the Federalist Society, and partners at major law firms representing oil and gas companies — including Theodore Olson of Gibson Dunn,the law firm representing Chevron against Honolulu and other communities’ climate liability cases — sit on its board.
Former Hawai‘i Supreme Court Justice Michael Wilson, who served on the state’s highest court for a decade, called the pressure campaign targeting the Supreme Court a “powerful intervention” by “the strongest special interest group in the history of human civilization.”
“This is the most important case in the United States from the point of view that it will allow a jury of citizens to see the fraud and to decide what to do about it,” said Wilson. “This is a high-risk strategy that shows that the fossil fuel industry is desperate.”
Oil companies, which quietly funded front groups like the American Legislative Exchange Council (ALEC) to sow climate denial and oppose climate action on their behalf, are now rallying their allies and benefactors to strike at lawsuits that seek to hold them accountable, explained Graves. In April, 20 Republican attorneys general filed a brief with the U.S. Supreme Court in support of the oil companies’ petition.
“The Leo-tied groups are a soup-to-nuts intervention machine, from the Republican attorneys general to the judges he helped put on the court,” said Graves.
In June, the Supreme Court delivered a one-line order asking the U.S. Justice Department to weigh in on the case — an “extraordinary” response at this stage, according to Wilson, considering that the case has not yet gone to trial. If the Solicitor General neglects to weigh in before the election, that response could be in the hands of a Trump administration. Trump has promised that if re-elected, he will “stop the wave of frivolous litigation from environmental extremists.”
A ‘Highly Unusual’ Request
In May, 19 members of RAGA made a “highly unusual” request to the Supreme Court: to intervene in and undermine climate accountability lawsuits filed by five states — California, Connecticut, Minnesota, New Jersey, and Rhode Island — claiming that their cases would impose “ruinous liability” on fossil fuel companies and threaten “our basic way of life.”
The Supreme Court has original jurisdiction over disputes between states — meaning it can hear a case without it first being heard by another court — but such challenges are more commonly brought over issues like water rights, said Gerrard of Columbia’s Sabin Center. “I’ve never previously heard of an instance where there’s an effort to invoke the original jurisdiction of the [U.S.] Supreme Court to swat down litigation,” he said.
RAGA obtains some of its largest donations from the fossil fuel industry — including Koch Industries, Exxon, and the American Petroleum Institute, all of whom are defendants in climate liability cases — according to an analysis by the Center for Media and Democracy.
“These AGs have now placed their allegiance directly with the special interest group that is threatening the survival of future generations,” said Wilson.
The filing argues that “oil and natural gas have supported improvements in environmental quality and have reduced weather-related deaths,” and claims that “America’s air is cleaner than a century ago thanks in part to the increased use of oil and natural gas.”
It isn’t the first time Republican attorneys general have rushed to shield oil companies from accountability for their climate deception — and overtly used climate denialist talking points first leveraged by Big Oil in their defense. In 2016, Exxon sued the attorneys general of New York and Massachusetts in an attempt to block investigations into the company’s private research and public communications about climate change, claiming the probe was an attack on their free speech and other constitutional rights.
Republican attorneys general from 12 states filed a 2018 brief in support of the oil giant, arguing that “Climate change is the subject of legitimate international debate.”
“[T]he most undeniable fact about climate change is that, like so many other areas of science and public policy, the debate remains unsettled, the research is far from complete, and the path forward is unclear,” they wrote.
A(nother) First Amendment Fight
Another industry strategy to block accountability is playing out in response to California Attorney General Rob Bonta’s investigation into whether Exxon and other petrochemical companies deceived the public about the efficacy of plastic recycling as a solution to plastic waste. In May, the American Chemistry Council and Plastics Industry Association — two major trade groups representing oil and chemical giants including Exxon, Chevron, Amoco, Dow, and DuPont — filed a lawsuit against the attorney general in federal court, claiming the investigation violates their free speech rights.
Bonta, who had said he would decide whether to sue Exxon by the summer, responded with petitions asking the Sacramento County Superior Court to order the groups to comply with his office’s subpoenas.
“For years, the plastics industry has engaged in an aggressive campaign to deceive the public, perpetuating a myth that recycling can solve the plastics waste and pollution crisis,” Bonta said in a statement. “The continuous delay tactics are failing to comply with our subpoena. Enough is enough: What are they trying to hide?”
Members of Congress have similarly accused the Big Oil companies of trying to obstruct investigations.
When Senate Budget Chairman Sheldon Whitehouse (D-RI) and House Oversight Ranking Member Jamie Raskin (D-MD) referred their years-long investigation into the industry’s climate deception to the Justice Department, the lawmakers wrote that “some companies claimed that the First Amendment or undefined ‘privilege’ protected them from the House Oversight Committee’s subpoena.” The main subjects of that investigation have been Exxon, Shell, Chevron, BP, API, and the U.S. Chamber of Commerce.
“The companies further obstructed the investigation by significantly redacting or entirely withholding more than 4,000 documents without any valid basis,” the lawmakers wrote, adding that their refusal to comply “provides a basis to infer that there is even more damning evidence of deceptive practices by the companies and their trade associations waiting to be uncovered.”
Fossil fuel companies and the law firms representing them have used a First Amendment defense to try to dismiss the climate accountability lawsuits, claiming company statements on climate change are protected political speech. One of the most prominent voices for that argument have been attorneys at Gibson Dunn, the firm that represents Chevron, and whose partner Theodore Olson sits on the Federalist Society board.
If these “overt” and “brazen” efforts to escape accountability can be overcome, the industry will no doubt face a reckoning, said Wilson, the former Hawai‘i Supreme Court justice. Communities like Honolulu “are being ravaged by climate” and “will apply the rule of law fairly,” he said.
“Hawai‘i is not a place that can be manipulated by the fossil fuel industry. That is a very big threat to the most powerful special interest group that’s now maintaining its power based on complicity.”
A new report shows oil majors fall short of meeting Paris Agreement targets while fueling global military conflicts.
Oil majors are not on track to hit Paris Agreement climate targets that limit global temperature rise to 1.5°C, a new report reveals.
Eight fossil fuel giants – Chevron, ExxonMobil, Shell, TotalEnergies, BP, Eni, Equinor, and ConocoPhillips – are on course to use 30 percent of the world’s remaining carbon budget for that 1.5°C goal, according to the Big Oil Reality Check report by nonprofit Oil Change International (OCI).
Combined, the oil and gas companies’ extraction plans are consistent with a temperature rise of over 2.4°C, the report found.That level of warming, according to the Intergovernmental Panel on Climate Change, will reduce food security, risk irreversible loss of ecosystems, and increase heat waves, rainfall, and extreme weather events.
“We analyzed the climate promises and plans of the largest eight international oil and gas companies that are owned in North America and Europe. What would it take for an oil and gas producer to align their production with limiting warming to 1.5?” David Tong, global industry campaign manager at OCI and co-author of the report, told DeSmog.
“If an oil and gas company were serious about transitioning its business model, the first step would be ending all new production and then setting a Paris-aligned phaseout plan,” he added.
‘No New Fossil’ Standard
A recent paper by academics at University College London and the International Institute for Sustainable Development, published in Science in May, calls for stopping fossil fuel expansion and building a “No New Fossil” global norm. According to the authors, this would make it “easier to phase down fossil fuels” and achieve the Paris Agreement climate goals.
No new fossil fuel projects would be needed in a 1.5°C world, they wrote, because the “existing fossil fuel capital stock” is sufficient to meet energy demand. The authors also note that preventing new fossil fuel projects is, in general, more feasible than closing existing projects from an economic, political, and legal viewpoint.
In the face of continuing global pressure to stop fossil fuel expansion, Chevron, ConocoPhillips, Equinor, Eni, ExxonMobil, and TotalEnergies have goals to increase oil and gas production within the next three years or beyond, the OCI report finds. While Shell does not quantify a target, the company plans to keep oil production steady while growing gas production in the near future, OCI said.
#BigOil has, in recent years, made splashy climate pledges to cut their greenhouse gas emissions & take on the climate crisis, but those plans don't stand up to scrutiny.
— Center for International Environmental Law (@ciel_tweets) May 27, 2024
“None of those companies came anywhere close to alignment [with climate goals],” said Tong. “Six of the eight companies we analyzed have explicit plans to increase their oil and gas production in this critical decade when we need to be cutting our reliance on fossil fuels, cutting oil, gas, and oil production.”
Plateauing oil and expanding gas production, like some of these companies plan to do, is “grossly insufficient” compared with the action that’s needed, Tong added. Even commitments to make businesses more efficient aren’t going to cut it alone, he said.
“It’s like a cigarette company claiming that it will solve lung cancer by producing cigarettes more efficiently,” he noted. “That’s not just not a credible claim. It’s a promise to become a more efficient climate breaker.”
Big Oil and War
According to the OCI report, all the oil majors fail to meet basic criteria for just transition plans for workers and communities where they operate.
“A number of these companies also face significant ongoing, unresolved allegations of human rights … and Indigenous people’s rights violations,” Tong told me.
A March 2024 investigation, commissioned by OCI and conducted by DataDesk, revealed that ExxonMobil, Chevron, TotalEnergies, BP, Shell, and Eni are “complicit in facilitating the supply of crude oil to Israel.” These findings are particularly noteworthy in the context of “Israel’s mounting evidence of war crimes” against Palestinians in Gaza, the OCI states in its new report.
Diesel and gasoline for tanks and other military vehicles are supplied by Israel’s refineries, which rely on regular imports of crude oil by these companies and, since October 2023, supplies mainly from Azerbaijan, Kazakhstan/Russia, Gabon, and Brazil, the research has found.
The fossil fuel industry is “fueling war and military conflicts” in many regions of the world, said Svitlana Romanko, a prominent Ukrainian activist and founder and director of Razom We Stand, a Ukrainian organization campaigning to ban all imports of fossil fuels from Russia.
According to Romanko, the OCI Big Oil Reality Check report “reinforces the importance of moving away from fossil fuels and investing into distributed renewable energy.”
A new analysis by a group of climate experts estimates that the first two years of Russia’s war on Ukraine resulted in greenhouse gas emissions equivalent to around 175 million tonnes of carbon dioxide. The estimated global cost of this warming in extreme weather impacts: $32 billion.
After Russia launched its full-scale invasion of Ukraine in February 2022, Russia earned over 681 billion euros in revenue from fossil fuel exports. European Union countries purchased fossil fuels from Russia for more than 195 billion euros.
Big Oil, as well as Russia, is profiting from the war, Romanko said. After the invasion, BP, Chevron, Equinor, ExxonMobil, Shell, and TotalEnergies raked in $219 billion, more than double their profits compared to the previous year.
“Most [governments] subsidize fossil fuels, and these subsidies are accounting for trillions of U.S. dollars annually,” Romanko said. “This is a big part of fossil fuel profits, and the more fossil fuels are subsidized, [the] less investments are made available for renewable energies.”
She pointed out that the partnership between TotalEnergies and Russia’s largest private gas producer, Novatek, was also “instrumental” in helping Russia get access to technologies and engineering services to launch Novatek’s Yamal LNG and Arctic LNG 2 projects.
Romanko notes that fossil fuel infrastructure can also constitute a liability for military attacks and quickly become a target.
“Centralized infrastructure endangers energy supply and overall safety of the supply,” she said. In Ukraine, a massive effort to install solar power plants in schools and hospitals helped decentralize this key resource, Romanko explained. “Decentralized energy supply is essential to building true energy independence,” she added. “And this is the future.”
Pressure for Accountability
Some of the eight oil majors in OCI’s report have faced more international and national scrutiny than others. Such pressure can facilitate accountability, but that’s less likely when the fossil fuel company is closely intertwined with the institutional, political, and economic life of its country.
“We need to look at what has succeeded in putting so much pressure on companies like Shell and BP,” OCI’s Tong said.
One factor: when communities in a company’s home country work closely in partnership with communities in fossil fuel-producing countries. Tong said that positive results also happen when campaigners use a range of strategies to expose producers, from nonviolent direct action to op-eds, research, and court action.
“This is particularly challenging with Eni, TotalEnergies, and Equinor in different ways because of the close interactions that each of the companies have with their home states,” he added.
Public, political, and legal pressure for accountability must also be coupled with industry regulation, according to Tong.
“We concluded that there is no evidence that the oil and gas sector will voluntarily transition to renewable energy, or voluntarily act to align their production with what’s needed for the Paris Agreement,” Tong said. Instead, governments must no longer license new production sites.
The strong right-wing result in the latest EU Parliament elections could also affect Big Oil’s energy transition.
“The more the links between the state and big polluters are overt, the more people get out in the streets and protest,” Tong said.
What is safe to say is that Big Oil’s business as usual will increase climate change effects.
“Floods, hurricanes, extreme weather events, and the millions of human lives affected and lost – this damage to nature, to human lives and to life on earth will only mount,” Romanko said. “What will be lost in a few more years will also mount if fossil fuel companies are allowed to continue with business as usual.”