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"The fossil fuel industry delays climate action, distracts from real solutions that would end the fossil fuel era, and does everything in its power to squeeze the last drops of profit from a dying industry, at the expense of all of us."
Among the world's wealthiest countries, the U.S. leads the way in spending public money on so-called climate "solutions" that have been proven to "consistently fail, overspend, or underperform," according to an analysis released Thursday by the research and advocacy group Oil Change International.
The group's report, titled Funding Failure, focuses on international spending on carbon capture and fossil-based hydrogen subsidies, which continues despite ample data showing that the technological fixes have "failed to make a dent in carbon emissions" after 50 years of research and development.
The report details how five countries account for 95% of all carbon capture spending, with the U.S. investing the most taxpayer money in the technology, at $12 billion in subsidies over the last 40 years.
Norway comes in second with $6 billion going to carbon capture and storage, while Canada has spent $3.8 billion, the European Union has spent $3.6 billion, and the Netherlands has poured $2.6 billion into the technology, with which carbon dioxide emissions are compressed and utilized or stored underground.
"It is nothing short of a travesty that funds meant to combat climate change are instead bolstering the very industries driving it."
Harjeet Singh, global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, toldThe Guardian that the subsidies amount to a "colossal waste of money."
"It is nothing short of a travesty that funds meant to combat climate change are instead bolstering the very industries driving it," said Singh.
While proponents claim carbon capture and storage reduces planet-heating carbon emissions, OCI notes, it was originally developed in the 1970s "to enhance oil production, and this remains its primary use," with the technology "barely" reducing emissions.
High-profile carbon capture failures in the U.S. include the Petra Nova project in Houston, Texas, which cost nearly $200 million in taxpayer funds and whose captured emissions were later used for crude oil production, and the FutureGen project, "which swallowed $200 million and never materialized."
"Investing in carbon capture delays the transition to renewable energy," reads OCI's report. "Instead of wasting time and money on technologies that do not work, governments must commit to justly and urgently phasing out fossil fuels before it's too late."
Despite the lack of data supporting the use of carbon capture, the group said, countries including the U.S. are "preparing to waste hundreds of billions of taxpayer dollars on these ineffective technologies, further benefiting the fossil fuel industry."
OCI highlighted how the U.S. and Canada, while ostensibly fighting the climate crisis, have spent a combined $4 billion in public money to explicitly "pay oil companies to produce more oil," with the subsidies going to carbon capture for "enhanced oil recovery."
The report also found that in addition to the $12 billion in taxpayer funds the U.S. has spent on carbon capture and fossil hydrogen—a leak-prone gas produced through energy-intensive processes that cause their own emissions—the government has spent an estimated $1.3 billion on the 45Q tax credit, which allows companies to write off tax for every ton of carbon dioxide they store underground.
The Inflation Reduction Act (IRA) increased the amount given to companies in 45Q tax credits from $35 to $60 per ton, meaning that the subsidy could grow to over $100 billion in the next 10 years.
OCI's Policy Tracker shows that overall public spending on carbon capture and hydrogen could grow by between $115 billion and $240 billion in the coming decades.
"We need real climate action, not fossil fuel bailouts!" said OCI in a post on social media.
The group's report also highlights that fossil fuel giants such as ExxonMobil have shifted from carbon capture skeptics to outspoken proponents of the technology—with the company bragging to investors that carbon capture and hydrogen would help its Low Carbon Business Unit make "hundreds of billions of dollars" and grow to be "larger than ExxonMobil's base business."
Exxon didn't launch its carbon capture efforts until 2018, having spent several years and hundreds of millions of dollars on another "climate solution" that ultimately failed: the use of algae to make biofuels.
Since then, Exxon has "pushed for direct government funding for carbon capture, particularly at the U.S. Department of Energy (DOE)," successfully lobbying for $12 billion allocated in the Bipartisan Infrastructure Bill in 2021 for "carbon management research, development, and demonstration."
Exxon also lobbied for the increased rate of the 45Q tax credit in the IRA and "played a 'central role' in drafting a 2019 DOE-sponsored report on carbon capture that determined Congress would need to create an incentive of around $90 to $110 per ton to support carbon capture deployment," according to OCI.
The Guardian on Thursday reported that Exxon still "chases billions in U.S. subsidies for a 'climate solution' that helps drill more oil," describing how the oil giant hosted an event at the Democratic National Convention earlier this month where senior climate strategy and technology director Vijay Swarup praised the IRA for helping Exxon pursue carbon capture and said: "We need new technology and we need policy to support that technology. We need governments working with private industry."
Exxon's enthusiasm for carbon capture, said OCI, is an example of how "the fossil fuel industry delays climate action, distracts from real solutions that would end the fossil fuel era, and does everything in its power to squeeze the last drops of profit from a dying industry, at the expense of all of us."
The Yasuní referendum in Ecuador and the Fossil Fuel Non-Proliferation Treaty are two rare examples of people taking action to end the production of oil, gas, and coal.
Everyone complains about the weather, but nobody does anything about it. This quip by the American essayist Charles Dudley Warner applies to fossil fuels as well. Everyone talks about ending fossil fuel production, but almost no one is doing anything about it.
Take the example of the Biden administration. It has launched the most ambitious effort by the United States to leave fossil fuels behind and enter the new era of renewable energy. And yet, in 2023, the United States produced more crude oil than ever before: 12.9 million barrels per day compared to the previous record from 2019 of 12.3 million barrels a day.
Or take the example of Brazil, where the progressive politician Lula da Silva won back the presidency in 2022. His predecessor was a big fan of drilling for fossil fuels. Lula has made it clear that he will take a very different approach. For instance, he wants Brazil to join the club of oil-producing countries in order to lead it into a clean-energy future. And yet, in 2023, Brazil’s production of oil increased by 13% and gas by over 8%, both new records.
In 2020, the United States imported nearly 70% of the oil produced by Amazonian countries.
Given all this Green rhetoric and crude (oil) action, it’s hard to find examples around the world where people are actually doing something to end fossil fuel production.
One of those places is Ecuador, which held a referendum last August about keeping oil under the ground of a certain plot of land in the Yasuní national park. “Yasuní is the most important park in Ecuador,” observes Esperanza Martínez, of Acción Ecológica in Ecuador. “It has been recognized as the most biodiverse region in the world, and it’s also home to many Indigenous peoples.”
Thanks to the work of several collectives, Ecuadorans voted 54-37% in the August referendum to stop all operations to explore for and extract oil from Block 43—also known as ITT—within the park. Since the referendum, however, an election brought in a new president who has threatened to ignore the results of the referendum in order to raise funds to address the country’s security crisis.
Another example of effective action, this time at the international level, comes from the organizers of the Fossil Fuel Non-Proliferation Treaty (FFNPT), an effort to roll back fossil fuels at the global level. Currently, 12 countries have endorsed the initiative, including a number of small island states but also, most recently, Colombia.
“Colombia is the first continental country to sign, with more than a century of petroleum extraction,” one of those organizers, Andrés Gómez O, points out. “So, this is a very important game-changer in the battle.”
One of the backers of this treaty, the one with the largest economy, is the U.S. state of California, which has been a leader in the United States in terms of expanding the renewable energy sector. There is so much energy generated by solar panels on sunny days in California that sometimes the net cost of that electricity drops below zero.
But as Raphael Hoetmer of Amazon Watch points out, California is also the largest importer of oil from the Amazon. In 2020, the United States imported nearly 70% of the oil produced by Amazonian countries, mostly Ecuador but a small amount from Colombia and Peru as well. And California is the state that’s importing by far the largest amount of this oil. So, shutting down the production of fossil fuels in Ecuador and elsewhere also requires addressing the largest consumers of those resources.
These three Latin American experts on the challenge of ending the international addiction to fossil fuels presented their findings at an April 2024 seminar sponsored by the Ecosocial and Intercultural Pact of the South and Global Just Transition. They not only discussed the appalling state of affairs in the world of energy and environment but also explained how some people are actually doing something about it.
The effort to preserve the biodiversity of Yasuní in the Ecuadoran Amazon and keep out the oil companies has been going on for more than a decade. In 2007, then-president Rafael Correa floated a plan for international investors to essentially pay Ecuador to keep its oil in the ground. When the international community didn’t pony up the $3.5 billion, Correa abandoned his plan and pledged to move forward with drilling.
That’s when Esperanza Martínez and others began to organize the first referendum to keep that oil in the ground. They collected 850,000 signatures, 25% more than were necessary to trigger a vote. But the National Electoral Council threw out the petition, arguing that 60% of the signatures were fakes.
“We spent ten years fighting in tribunals and legal proceedings,” Martínez relates. “And what the National Electoral Council did was a fraud. We could prove that it was a fraud.”
“The discussion is no longer if this part of the park should be closed or not, but how and when.”
The August 2023 referendum was a dramatic vindication for the Yasunídos. “Five million Ecuadorans said that it was right to leave the crude oil underground,” she continues. “This was a campaign that had never been seen before in the country to stop oil companies from extracting oil from the ground and preventing the negative impacts on the health and environment. We won!”
In the same referendum, voters also decided to stop mining activities in the “El Chocó” biosphere reserve in the capital city of Quito. The campaign, “Quito sin mineria,” opposed mining projects in the Metropolitan District of Quito and the Chocó Andino region, which comprises 124,000 hectares.
But the referenda on Yasuní and El Chocó were not the only elections that took place on that day in Ecuador. Voters also went to the polls to vote for a new president. In a later second round, businessman Daniel Noboa won. Noboa had supported the Yasuní referendum, pointing out that a ban on extraction actually made economic sense since it would cost $59 a barrel to extract the oil, which would sell for only $58 a barrel on the international market. After his election, he said that he would respect the results.
But then, in January 2024, he reversed himself, calling instead for a year moratorium on the ruling. Ecuador, Noboa argued, needed the money to address its worsening security situation: a surge in narcotrafficking, a skyrocketing murder rate, and a descent into gang warfare.
The Yasunídos argue that even this perilous situation should not affect the results of the referendum. “In Ecuador, nature is the subject of rights,” Martínez says, referring to the fact that Ecuador was the first country in the world in 2008 to include the rights of nature in its constitution. “The discussion is no longer if this part of the park should be closed or not, but how and when.”
The Amazon rainforest is a powerful symbol of biodiversity all around the world, even for people who can’t identify the countries through which the Amazon river flows.
“It’s the world’s largest tropical rainforest,” reports Raphael Hoetmer of Amazon Watch in Peru. “It houses up to 30% of the world species and contains one-fifth of the world’s fresh water. It is home to 410 Indigenous nationalities, 82 of them living in isolation by choice, all of them helping in global climate regulation.”
But the Amazon region also contains an abundance of natural resources: timber, gold, and fossil fuels. “Any just transition requires ending the extraction of oil—and not only oil—from the Amazon,” Hoetmer continues. “It also requires ending the system that is behind this extraction.”
Shutting down oil and gas production in the Amazon requires looking beyond the producers to the investors and the consumers.
The degradation of the Amazon rainforest is reaching a tipping point. The estimate is that when deforestation reaches 20-25% of the biome, the area can’t recover. Hoetmer reports that deforestation is now approaching 26%.
Fossil fuel extraction is contributing to that deforestation is several ways. Millions of hectares are currently slated for oil and gas extraction. The drilling itself requires deforestation, but so do the new roads established to reach those sites. Those roads in turn open the region up to other forms of exploitation such as logging and agribusiness.
Then there are the oil spills that contaminate vast stretches of land. Several major pipeline breaks have dumped oil into the Ecuadorian Amazon, and the Ecuadorian environmental ministry estimates that there have been over a thousand “environmental liabilities” and over 3,000 sites “sources of contamination.” Between 1971 and 2000, Occidental Petroleum dumped 9 billion gallons of untreated waste containing heavy metals into Peru’s rivers and streams, leading to a lawsuit against the company by Indigenous Peruvians that resulted in an out-of-court settlement. Colombia’s oil industry has been involved in over 2,000 episodes of environmental contamination between 2015 and 2022.
Shutting down oil and gas production in the Amazon requires looking beyond the producers to the investors and the consumers. California, since it absorbs nearly half of all Amazon oil exports, is a major potential target. On the financing side, Amazon Watch’s End Amazon Crude campaign is working to stop new financial flows into, for instance, Petroperú, the country’s state-run oil company. Campaigners are targeting major banking institutions in the Global North, including JPMorgan Chase, Citi, and Bank of America. Community-led protests have taken place in the United States, Chile, and Germany. By raising the costs of investment into Amazonian extraction, campaigners are pushing lenders to remove Amazonian oil from their portfolios.
Another strategy is strengthening territorial sovereignty in Indigenous lands. “One of the processes that gives us hope is this proposed proposal to reconstruct the Amazon based on strengthening the self-governance of Amazonian people,” Hoetmer notes. “The notion of Autonomous Territorial Governments started with the Wampis peoples but has now expanded to over 10 Indigenous nations. The Autonomous Territorial Governments defend their territories against illegal mining as well as land invasions and fossil fuel extraction, demand and build intercultural education, and negotiate public services with the Peruvian state.”
Frontline communities, particularly those from the Global South, are paying the highest price of fossil fuel exploitation and climate change, yet they are the least responsible. All over the world and for decades, frontline struggles have shown leadership in resisting the plundering of their territories. Today, for many communities around the world—and for some whole countries—continued fossil fuel extraction and climate change represent an existential crisis.
In response to this crisis, an early proposal came from officials and civil society leaders in the Pacific for a moratorium and binding international mechanisms specifically dedicated to phasing out fossil fuels in the Pacific. In 2015, in the Suva Declaration on Climate Change issued from the Pacific Islands Development Forum Third Annual Summit held in Suva, Fiji, decision-makers called for: “a new global dialogue on the implementation of an international moratorium on the development and expansion of fossil fuel extracting industries, particularly the construction of new coal mines, as an urgent step towards decarbonizing the global economy.”
In 2016, following a summit in the Solomon Islands, 14 Pacific Island nations discussed the world’s first treaty that would ban new coal mining and embrace the 1.5°C goal set at the Paris climate talks.
By connecting the struggle to the experiences of local communities—the violence associated with extraction, the cancer cases, the oil spills—“we are not just interested in convincing the already existing movements,” he says, “We also have to move the whole society.”
Initiated by island countries most at risk from rising waters, the movement for a Fossil Fuel Non-Proliferation Treaty has now been endorsed by a dozen countries and more than 2,000 civil society organizations as well as a number of cities and states like California and more than 100 Nobel laureates.
“Our treaty is based on other treaties that have talked about nuclear weapons, mines, and gasses like the Montreal Protocol on phasing out ozone-depleting substances,” relates Andrés Gómez O.
“What’s clear is that we don’t have time for business as usual,” the FFNPT organizers argue. “The International Energy Agency determined that there needs to be a decline of fossil fuel use from four-fifths of the world’s energy supply today to one-fifth by 2050. The fossil fuels that remain will be embedded in some products such as plastics and in processes where emissions are scarce.” Critical to this process is action by richer countries. “Countries that are better off economically can support other countries to step away from the fossil fuel system,” Gómez continues.
A key strategy, he adds, would be “the Yasunization of territories.” He explains that “this means, first, making this park a utopia for the country. Then we localize this approach in different provinces in Ecuador where we say, okay, in this province we have our own Yasuní.” This local approach has had some precedents. The Ecuadoran city of Cuenca, for instance, held a referendum in 2021 banning future mining project.
The treaty appeals not only to the environmental movement. By connecting the struggle to the experiences of local communities—the violence associated with extraction, the cancer cases, the oil spills—“we are not just interested in convincing the already existing movements,” he says, “We also have to move the whole society.”
He concludes succinctly: “We are not just about saying no—to fossil fuels, to extractivism. We are about saying a very big yes: to life!”
"We are many people and youths who want to express our frustration over what decision-makers are doing right now: They don't care about our future and aren't doing anything to stop the climate crisis," one young activist said.
Ahead of Earth Day, young people around the world are participating in a global strike on Friday to demand "climate justice now."
In Sweden, Greta Thunberg joined hundreds of other demonstrators for a march in Stockholm; in Kenya, participants demanded that their government join the Fossil Fuel Non-Proliferation Treaty; and in the U.S., youth activists are kicking off more than 200 Earth Day protests directed at pressing President Joe Biden to declare a climate emergency.
"We're gathered here to fight, once again, for climate justice," Thunberg told Agence France-Presse at the Stockholm protest, which drew around 500 people. "It's now been more than five and a half years that we've been doing the same thing, organizing big global strikes for the climate and gathering people, youths from the entire world."
"I lost my home to climate change. Now I'm fighting so that others don't lose their homes."
The first global youth climate strike, which grew out of Thunberg's Fridays for Future school strikes, took place on March 15, 2019. Since then, both emissions and temperatures have continued to rise, with 2023 blowing past the record for hottest year. Yet, according to Climate Action Tracker, no country has policies in place that are compatible with limiting global heating to 1.5°C above preindustrial levels.
"We are many people and youths who want to express our frustration over what decision-makers are doing right now: They don't care about our future and aren't doing anything to stop the climate crisis," Karla Alfaro Gripe, an 18-year-old participant at the Stockholm march, told AFP.
The global strikes are taking place under the umbrella of Friday's for Future, which has three main demands: 1. limit temperature rise to 1.5°C, 2. ensure climate justice and equity, and 3. listen to the most accurate, up-to-date science."Fight with us for a world worth living in," the group wrote on their website, next to a link inviting visitors to find actions in their countries.
Participants shared videos and images of their actions on social media.
European strikers also gathered in London, Dublin, and Madrid.
In Asia, Save Future Bangladesh founder Nayon Sorkar posted a video from the Meghna River on Bangladesh's Bola Island, where erosion destroyed his family's home when he was three years old.
"I lost my home to climate change," Sorkar wrote. "Now I'm fighting so that others don't lose their homes."
Also in Bangladesh, larger crowds rallied in Dhaka, Sylhet, Feni, and Bandarban for climate action.
"Young climate activists in Bandarban demand a shift to renewable energy and away from fossil fuels," said Sajjad Hossain, the divisional coordinator for Youthnet for Climate Justice Bangladesh. "We voiced urgency for sustainable energy strategies and climate justice. Let's hold governments accountable for a just transition!"
In Kenya, young people struck specifically to demand that the government sign on to the Fossil Fuel Non-Proliferation Treaty.
"As a member of the Lake Victoria community, the importance of the treaty in our climate strikes cannot be overstated," Rahmina Paullette, founder of Kisumu Environmental Champions and a coordinator for Fridays for Future Africa, said in a statement. "By advocating for its implementation, we address the triple threat of climate change, plastic pollution, and environmental injustice facing our nation."
"Halting fossil fuel expansion not only safeguards crucial ecosystems but also combats the unjust impacts of environmental degradation, ensuring a more equitable and sustainable future for our community and the wider Kenyan society," Paullette said.
In the U.S., Fridays for Future NYC planned for what they expected to be the largest New York City climate protest since September 2023's March to End Fossil Fuels. The action will begin at Foley Square at 2:00 pm Eastern Time, at which point more than 1,000 students and organizers are expected to walk across the Brooklyn Bridge to rally in front of Borough Hall.
The strike "is part of a national escalation of youth-led actions in more than 200 cities and college campuses around the country, all calling on President Biden to listen to our generation and young voters, stop expanding fossil fuels, and declare a climate emergency that meaningfully addresses fossil fuels, creating millions of good paying union jobs, and preparing us for climate disasters in the process," Fridays for Future NYC said in a statement.
The coalition behind the climate emergency drive, which also includes the Sunrise Movement, Fridays for Future USA, and Campus Climate Network, got encouraging news on Wednesday when Bloomberg reported that the White House had reopened internal discussions into potentially declaring a climate emergency.
"We're staring down another summer of floods, fires, hurricanes, and extreme heat," Sunrise executive director Aru Shiney-Ajay said in a statement. "Biden must do what right Republicans in Congress are unwilling to do: Stand up to oil and gas CEOs, create green union jobs, and prepare us for climate disasters. Biden must declare a climate emergency and use every tool at his disposal to tackle the climate crisis and prepare our communities to weather the storm. If Biden wants to be taken seriously by young people, he needs to deliver on climate change."
The coalition is planning events leading up to Monday including dozens of Earth Day teach-ins beginning Friday to encourage members of Congress to pressure Biden on a climate emergency and Reclaim Earth Day mobilizations on more than 100 college and university campuses to demand that schools divest from and cut ties with the fossil fuel industry.