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"Chevron's 'net zero' rhetoric looks to be little more than a PR ploy to prevent strong climate action while the corporation rakes in record profits and plans for further production or expansion in at least 20 countries."
Research published Wednesday reveals that nearly all of the carbon offsets Chevron relies on to "cancel out" its planet-heating emissions are likely "worthless," rendering the oil giant's so-called "net zero aspiration" a masterclass in greenwashing that threatens to exacerbate the fossil fuel-driven climate crisis.
According to a new report from Corporate Accountability, at least 93% of the voluntary carbon market offsets Chevron purchased and counted toward its climate targets between 2020 and 2022 are "of low environmental integrity and therefore appear to be junk, until or unless proven otherwise." To make matters worse, at least 42% of the purportedly green initiatives the company invested in and gave itself credit for over the past three years are linked to claims of ecological and social harm, particularly in the Global South.
"This is how we lose a planet: through corporate dishonesty and obstruction."
Over half of Chevron's offset credits from 2020-2022 (including over 97% in 2022) were based on large hydroelectric projects, but these are "meaningless" from a carbon accounting standpoint because they don't deliver additional reductions in greenhouse gas (GHG) pollution, the report notes.
The authors cite a preexisting explanation from the GHG Management Institute and Stockholm Environmental Institute: "GHG emissions reductions are additional if they would not have occurred in the absence of a market for offset credits. If the reductions would have happened anyway—i.e., without any prospect for project owners to sell carbon offset credits—then they are not additional… if their associated GHG reductions are not additional, then purchasing offset credits in lieu of reducing your own emissions will make climate change worse."
Mega-dams also tend to be associated with myriad downsides, including widespread displacement and violent repression. Two projects in Colombia that account for a combined 37% of Chevron's recent offsets—Proyecto Hidroeléctrico El Quimbo and the Sogamoso Hydropower Project—have been accused of inflicting substantial damage on local ecosystems and communities, with the latter under fire for allegedly threatening, disappearing, and even killing opponents.
One-third of Chevron's offset credits over the past three years came from Reducing Emissions From Deforestation and Forest Degradation in Developing Countries, or REDD+, projects. The vast majority were purchased through Verra, the world's largest carbon credit certifier; a recent analysis found that 94% of the rainforest offsets sold by Verra have no discernible climate benefits, contributing to its CEO's Tuesday decision to resign. In addition to largely failing to reduce deforestation—resulting in dubious emissions reduction effects—REDD+ projects "are also notorious for their negative impacts on Indigenous peoples and local communities worldwide due to risks of land grabbing and loss of land tenure rights," the new investigation points out.
Chevron's recent offsets also include several ostensible reforestation projects, but according to the report, two of them are large rubber plantation monocultures for latex extraction and another is based on pine and eucalyptus plantations destined to be harvested before 2040.
"Large plantations such as these, unlike natural or even secondary forests (e.g., those that are replanted and left to grow naturally), require sterile habitats, frequent harvesting, and sometimes clearing, which releases stored carbon back into the atmosphere," the report notes. "These plantations can actually create cumulatively worsening conditions for local ecosystems and biodiversity and are not effective carbon-offsetting strategies."
"In addition to junk offsets, Chevron also promotes its investment in CCUS [Carbon Capture Utilization and Storage] as central to achieving its 'net zero' target," the report observes. "By its own admission, Chevron's CCUS projects are failing to achieve even close to the amount of emissions removals promised, in some cases even failing to meet the targets by 50%."
\u201cBREAKING: Chevron is consistently ranked as one of the worst #BigPolluters to repeatedly obstruct climate policy.\n\nBut just how deeply misaligned is the corporation when it comes to upholding its climate commitments?\n\n\u2b07\ufe0f Our latest on #ChevronsJunkAgenda.\nhttps://t.co/IVMA0M3cxp\u201d— Corporate Accountability (@Corporate Accountability) 1684917060
Notably, even if Chevron were to hit its current climate targets, it would still ignore 90% of its overall emissions. That's because the oil giant's goal of achieving "net zero" GHG pollution by 2050 only applies to upstream ("scope 1" and "scope 2") emissions—the 10% that correspond with production and the operation of company-owned property. The vast majority of Chevron's emissions are downstream ("scope 3"), or those that stem from the end use of its petroleum products.
Rachel Rose Jackson, director of climate research and policy at Corporate Accountability, said in a statement that "Chevron's 'net zero' rhetoric looks to be little more than a PR ploy to prevent strong climate action while the corporation rakes in record profits and plans for further production or expansion in at least 20 countries."
Chevron, the second-biggest U.S. oil major behind ExxonMobil, raked in a record $35.5 billion in profit in 2022 and announced a $75 billion stock buyback plan for this year. In addition, the company—responsible for generating more than 43 billion tons of GHG pollution since 1965, second only to Saudi Aramco among corporations worldwide—is planning to dump $57.4 billion into ramping up fossil fuel production this decade, the report laments.
Chevron's investment plans, second only to Exxon's, are at odds with climate scientists' repeated warnings that fossil fuel expansion is incompatible with preserving a habitable planet.
"This deeply documented history of greenwashing and malfeasance should make every human on Earth who isn't paid by the fossil fuel industry furious."
Corporate Accountability's new exposé "supports what we have long suspected to be true beneath its 'green image,'" said Jackson. "Chevron is deploying junk offsets that are presumed worthless, and many of which are likely to be spurring harm on frontline communities. In addition, its vast lobbying is a hindrance to the strong climate action we urgently need."
According to Corporate Accountability: "Last year, Chevron lobbied on more than 150 federal bills or issues in the U.S.—targeting policies that sought to lower emissions while pushing others that would further legitimize risky and unproven schemes like CCUS. In 2020-2022, Chevron directly spent $20.8 million lobbying in the U.S. alone. This does not even take into account the more than $310.5 million its partner trade groups spent in the same time period."
In response to the report, climate scientist Peter Kalmus toldThe Guardian that "this is how we lose a planet: through corporate dishonesty and obstruction."
"This deeply documented history of greenwashing and malfeasance should make every human on Earth who isn't paid by the fossil fuel industry furious," Kalmus added.
The report comes just days after communities harmed by Chevron's operations held the 10th annual #AntiChevronDay of action on Sunday. Demonstrations took place in 10 countries, including a protest outside a massive oil refinery in Richmond, California, where the company is headquartered. It also comes one week before the company's annual shareholder meeting on May 31.
"It's imperative that shareholders, policymakers, and the public see Chevron's green claims for what they are—greenwashed destruction," says Corporate Accountability. "As this exposé illustrates, Chevron appears to be continuing its legacy of preventing, not promoting, the legally binding regulations, the rapid deployment of real solutions, and the fast track to real zero emissions that needs to happen to avert climate catastrophe."
In a statement, Chevron spokesperson Bill Turenne said that "Chevron supports offsets" as part of its effort "to advance a lower carbon future." He added that "the majority of the offsets referred to in the report are compliance-grade offsets accepted by governments in the regions where we operate."
Note: This piece has been updated with comment from Chevron.
A new report published Wednesday by a trio of progressive advocacy groups lifts the veil on so-called "net zero" climate pledges, which are often touted by corporations and governments as solutions to the climate emergency, but which the paper's authors argue are merely a dangerous form of greenwashing that should be eschewed in favor of Real Zero policies based on meaningful, near-term commitments to reducing global greenhouse gas emissions.
"Increasingly, the concept of 'net zero' is being misconstrued in political spaces as well as by individual actors to evade action and avoid responsibility." --Report
The report--titled "The Big Con: How Big Polluters Are Advancing a "Net Zero" Climate Agenda to Delay, Deceive, and Deny" (pdf)--was published by Corporate Accountability, the Global Forest Coalition, and Friends of the Earth International, and is endorsed by over 60 environmental organizations. The paper comes ahead of this November's United Nations Climate Change Conference in Glasgow, Scotland and amid proliferating pledges from polluting corporations and governments to achieve what they claim is carbon neutrality--increasingly via dubious offsets--by some distant date, often the year 2050.
However, the report asserts that "instead of offering meaningful real solutions to justly address the crisis they knowingly created and owning up to their responsibility to act beginning with drastically reducing emissions at source, polluting corporations and governments are advancing 'net zero' plans that require little or nothing in the way of real solutions or real effective emissions cuts."
"Furthermore... they see the potential for a 'net zero' global pathway to provide new business opportunities for them, rather than curtailing production and consumption of their polluting products," it says.
According to the report:
After decades of inaction, corporations are suddenly racing to pledge to achieve "net zero" emissions. These include fossil fuel giants like BP, Shell, and Total; tech giants like Microsoft and Apple; retailers like Amazon and Walmart; financers like HSBC, Bank of America, and BlackRock; airlines like United and Delta; and food, livestock, and meat-producing and agriculture corporations like JBS, Nestle, and Cargill. Polluting corporations are in a race to be the loudest and proudest to pledge "net zero" emissions by 2050 or some other date in the distant future. Over recent years, more than 1,500 corporations have made "net zero" commitments, an accomplishment applauded by the United Nations Framework Convention on Climate Change and the U.N. Secretary-General.
"Increasingly, the concept of 'net zero' is being misconstrued in political spaces as well as by individual actors to evade action and avoid responsibility," the report states. "The idea behind big polluters' use of 'net zero' is that an entity can continue to pollute as usual--or even increase its emissions--and seek to compensate for those emissions in a number of ways. Emissions are nothing more than a math equation in these plans; they can be added one place and subtracted from another place."
\u201cBehind #NetZero pledges is the reality that #BigPolluters can keep:\n \n\ud83d\udcb5 Buying carbon #offsets instead of cutting emissions\n\ud83c\udf33 Driving land grabs in the Global South\n\ud83c\udfed Extracting and polluting\n\nLearn more about why #NetZeroIsNotZero in this new report https://t.co/bi7GoMmvsx\u201d— Global Forest Coalition (GFC) (@Global Forest Coalition (GFC)) 1623227415
"This equation is simple in theory but deeply flawed in reality," the paper asserts. "These schemes are being used to mask inaction, foist the burden of emissions cuts and pollution avoidance on historically exploited communities, and bet our collective future through ensuring long-term, destructive impact on land and forests, oceans, and through advancing geoengineering technologies. These technologies are hugely risky, do not exist at the scale supposedly needed, and are likely to cause enormous, and likely irreversible, damage."
Among the key findings of the report:
"The best, most proven approach to justly addressing the climate crisis is to significantly reduce emissions now in an equitable manner, bringing them close to Real Zero by 2030 at the latest," the report states, referring to a situation in which no carbon emissions are produced by a good or service without the use of offsets. "The cross-sectoral solutions we need already exist, are proven, and are scalable now... All that is missing is the political will to advance them, in spite of industry obstruction and deflection."
"To avoid social and planetary collapse, [leaders] must heed the calls of millions of people around the globe and pursue policies that justly, equitably transition our economies off of fossil fuels, and advance real solutions that prioritize life--now." --Report
"People around the globe have already made their demands clear," the report says. "Meaningful solutions that can be implemented now are already detailed in platforms like the People's Demands for Climate Justice, the Liability Roadmap, the Energy Manifesto, and many other resources that encompass the wisdom of those on the frontlines of the climate crisis."
Sara Shaw, climate justice and energy program co-coordinator at Friends of the Earth International and one of the paper's authors, said "this report shows that 'net zero' plans from big polluters are nothing more than a big con. The reality is that corporations like Shell have no interest in genuinely acting to solve the climate crisis by reducing their emissions from fossil fuels. They instead plan to continue business as usual while greenwashing their image with tree planting and offsetting schemes that can never ever make up for digging up and burning fossil fuels."
"We must wake up fast to the fact that we are falling for a trick," Shaw added. "'Net zero' risks obscuring a lack of action until it is too late."
Lidy Nacpil, coordinator of the Asian Peoples Movement on Debt and Development--which endorsed the report--warned that "proclamations of 'net zero' targets are dangerous deceptions. 'Net zero' sounds ambitious and visionary but it actually allows big polluters and rich governments to continue emitting [greenhouse gases] which they claim will be erased through unproven and dangerous technologies, carbon trading, and offsets that shift the burden of climate action to the Global South."
"Big polluters and rich governments should not only reduce emissions to Real Zero, they must pay reparations for the huge climate debt owed to the Global South," added Nacpil.
In conclusion, the reports says world leaders must "listen to the people and once and for all prioritize people's lives and the planet over engines of profit and destruction."
"To avoid social and planetary collapse," it states, "they must heed the calls of millions of people around the globe and pursue policies that justly, equitably transition our economies off of fossil fuels, and advance real solutions that prioritize life--now."
Ahead of a virtual weekend summit to mark the fifth anniversary of the Paris agreement, over 100 groups on Thursday urged President-elect Joe Biden to commit the United States to its "fair share" of emissions cuts and climate finance, noting the nation's disproportionate contributions to the global crisis.
"The people who voted for a better future are now ready to demand it from your administration," says the joint letter (pdf) to Biden, sent on behalf of millions of people. It follows the release last week of a U.S. Climate Action Network (USCAN) analysis of fair share country contributions with a focus on the United States.
The analysis found the U.S. fair share of global action necessary to limit temperature rise this century to 1.5degC--the more ambitious Paris target--is the equivalent of reducing U.S. emissions 195% by 2030, based on 2005 levels. In other words, slashing domestic greenhouse gas emissions isn't enough--the United States must also help other countries. USCAN calls for domestic reductions of 70% by 2030 along with U.S. financial and technological support to enable even greater cuts in developing nations.
"The climate crisis may be the most unfair thing that ever happened on this Earth: the less you did to cause it, the harder you get hammered," said author and activist Bill McKibben, who co-founded the group 350.org. "These numbers give us a strong sense of what a just and honorable response might look like."
Noting that the United States, "for all our terrible inequality, is an extremely wealthy country," USCAN executive director Keya Chatterjee said in a statement that "we can hardly expect other countries, particularly developing countries straining to lift their people out of poverty, to prioritize emissions reductions, if we haven't already done so. The new administration very much wants to make the U.S. into a climate leader. Climate leaders do their fair shares."
Given President Donald Trump's recent withdrawal from the global climate accord, the groups' letter tells Biden that "we applaud your stated intent for the United States to rejoin the Paris agreement at the earliest possible moment," while also encouraging the next president to go further and fully embrace the fair share demand.
"This commitment to fair shares is already included in the Democratic Party's Platform," the letter notes. "To follow through, this will require bold, equitable, and ambitious emissions reductions and a commitment to support less wealthy countries to do the same, including providing a significant amount of climate finance, far more than we committed to under the Obama administration."
According to Friends of the Earth U.S. president Erich Pica, "For far too long, the United States approach to addressing climate change in both the domestic and international context has ignored or denied our historic contributions to the climate emergency and our greater responsibility to act."
As the letter details:
To date, the United States has contributed more to climate change than any other country in the world. It is also the world's wealthiest country, with much of this wealth being accumulated through activities that have directly or indirectly fueled climate change. Even within the U.S., we see all too well how the devastating impacts of extractive and polluting activities are concentrated in low-income, Black, Latinx, and Indigenous communities, while the wealth accumulated through these practices is concentrated in the hands of just a few. These are truths that cannot be ignored.
It is past time for the U.S. to finally act the way a climate leader must --both within its borders and internationally. The United States' capacity to act on the climate crisis and its historical contribution to creating it are so large that even cutting to zero emissions tomorrow would not be action enough. And so now the U.S., beginning with your administration, must do its fair share in addressing this crisis. It is long overdue. It is what's right. And if people from Louisiana to California and from the Philippines to Nigeria are going to have a chance at surviving the existential crisis unfolding before our eyes, it is paramount.
Taking aim at past Republican and Democratic administrations, Corporate Accountability U.S. climate campaign director Sriram Madhusoodanan said that "the U.S. has consistently been a bad faith actor backing Big Polluters instead of people at the U.N. climate talks. It is not enough for the U.S. to simply rejoin the Paris agreement."
"The Biden administration has touted climate action, and it is time for them to walk the walk," Madhusoodanan added. "With its reentry to the Paris agreement, the U.S. must commit to pay what it owes to Global South countries, eliminate emissions, and stop undermining people-first solutions."
Holding Biden to account, the letter points outs that "you yourself acknowledged the people's mandate for urgent action on climate change in your victory speech, and we are here to tell you that transforming how the U.S. shows up and fulfills its obligations to address the climate crisis on the global stage is an essential ingredient in demonstrating climate leadership."
\u201cTrue climate leadership means:\n \n\u2757\ufe0fCommitting to real and bold emissions reductions at home\n\u2757\ufe0fProviding climate financing and support to Global South countries\n \n@Transition46, it\u2019s time for the U.S. to do its #ClimateFairShare. More on our demands here: https://t.co/J5UZmHcACN\u201d— Unitarian Universalist Service Committee (@Unitarian Universalist Service Committee) 1607701534
Biden recently appointed John Kerry, the former secretary of state who helped craft the Paris agreement, as his climate envoy. In an interview with NPR earlier this week, Kerry said that in terms of taking action domestically to become a global climate leader, "We will have to do our fair share."
"Yes, it's simple for the United States to rejoin, but it's not so simple for the United States to regain its credibility," Kerry added of the Paris agreement. And I think we have to approach this challenge with some humility and with a very significant effort by the United States to show that we are serious."
Earlier this week, as a new United Nations report warned that despite a brief coronavirus pandemic-related drop in emissions, the Paris goals are still out of reach based on countries' current climate pledges, U.N. Secretary-General Antonio Guterres called Biden's decision to bring Kerry into his evolving administration "a demonstration that there will be a very strong commitment of the U.S. in relation to climate action next year."