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greenpeace international
Big Oil Tax Could Boost Global Loss and Damage Fund by 2000%
"The damages resulting from the industry’s operations are disproportionately borne by people who did not cause the crisis," said one campaigner.
Nov 18, 2024
A modest tax on the world's seven largest oil and gas companies could generate hundreds of billions of dollars by the end of the decade to assist poor and vulnerable communities with the impact of the climate crisis, according to a new analysis out Monday from the groups Greenpeace International and Stamp Out Poverty.
The groups found that a tax on fossil fuel extraction, which would increase each year, combined with additional taxes on excess profits would grow the UN's Fund for Responding to Loss and Damage by more than 2,000%.
The loss and damage fund was created two years ago during the COP27 summit in Egypt with the aim of helping vulnerable countries confront the risings costs of climate disasters. Last year, a group of nations that included the United States made their first financial pledges to the fund—though the size of the U.S. pledge was panned as "paltry" by climate justice advocates. As one of the world's largest fossil fuel emitters, the initial pledge of $17.5 million was miniscule relative to the hundreds of billions in fossil fuel subsidies the U.S. government handed out in 2022.
Total commitments to the loss and damage fund currently hover at around $720 million, according toThe New York Times.
This year, at COP29 in Baku, Azerbaijan, boosting the money in the fund is top of mind for a number of UN leaders.
"The $700 million is obviously insufficient," Jorge Moreira da Silva, the executive director of the United Nations Office for Project Services, toldthe Times.
"In an era of climate extremes, loss & damage finance is a must. And we must get serious about the level of finance required. At #COP29, I urged governments to deliver. In the name of justice," U.N. Sectary-General António Guterres wrote on X as the summit kicked off last week.
The joint analysis—which focused on world's largest publicly traded oil and gas companies, a group that includes ExxonMobil, Shell, Chevron, TotalEnergies, BP, Equinor, and Eni—illustrates how major polluters could be tapped to support the fund.
Stamp Out Poverty researchers have "found that home government collection of volume-based [climate damages tax] is feasible, with many countries already collecting volume-based revenue from oil and gas producers," according to the report.
The briefing notes that the Climate Damages Tax "would be a fee on the extraction of each tonne of coal, barrel of oil or cubic metre of gas, calculated at a consistent rate based on how much CO2e [carbon dioxide equivalent] is embedded within the fossil fuel."
To illustrate the impact of this tax, Greenpeace and Stamp Out Poverty looked at the estimated costs associated with multiple extreme weather events in 2024 alongside the hypothetical tax revenue.
Hurricane Beryl, which impacted multiple Caribbean islands, Mexico and the U.S. Gulf Coast, caused at least $6.6 billion in estimated damages and losses, according to the report. Meanwhile, imposing a hypothetical Climate Damages Tax on the 2023 carbon emissions from ExxonMobil alone would raise enough money to cover nearly half of that price tag.
ExxonMobil made $38.6 billion in adjusted earnings for 2023, so levying a tax of $5 per tonne of CO2e in 2023 would yield $3.19 billion. Over the first year, the combined revenue from all seven companies would be over $15 billion. As the levy was increased over the two following years, that annual figure would grow to over $37 billion. The analysis, according to its authors "contributes to the growing civil society call for long term tax on fossil fuel extraction."
The report comes on the heels of two weeks of worldwide protests by Greenpeace activists and allies, during which some demonstrators confronted fossil fuel executives about their role in fueling climate disaster and demanded that they "pay for the climate damage they cause."
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Who Should Pay for Climate Damage? Majority of the World Agrees: Big Oil
"As governments debate how to finance climate action, they can be confident that making polluters pay is not only fair, but also far more popular and effective than placing the burden on ordinary citizens."
Nov 04, 2024
A multinational survey commissioned by Greenpeace International and published Monday revealed that a majority of respondents favor making fossil fuel companies pay for being the main cause of the climate emergency.
Greenpeace International's Stop Drilling, Start Paying campaign commissioned the strategic insight agency Opinium Research to survey 8,000 adults in eight countries—Australia, Argentina, France, Morocco, Philippines, South Africa, the United Kingdom, and the United States—ahead of this month's United Nations Climate Change Conference, also known as COP29, in Baku, Azerbaijan.
"Asked about who should bear the most responsibility for climate change impacts, the most popular option across all eight countries in the survey was making oil and gas companies pay, with high-emitting countries and global elites ranked second and third," Greenpeace International said in a summary of the survey, adding that "60% of all surveyed countries see a link between profits of the oil and gas industry and rising energy prices."
The survey also found that two-thirds or more of respondents are angry about Big Oil CEOs getting huge bonuses even as their products exacerbate the planetary emergency; fossil fuel expansion; industry disinformation; and the "historic and ongoing role of oil and gas companies in conflict, war, and human rights violations."
Eight in 10 respondents said they were worried about climate change. However, more than twice as many people surveyed in the Global South said the climate emergency has personally affected them than respondents in the Global North.
According to Greenpeace International:
Imposing a fair climate damages tax on extraction of fossil fuels by OECD countries—proposed by the charity Stamp Out Poverty and supported by 100 NGOs, including Greenpeace International—is one example of a tax on big polluters. This could generate $900 billion by 2030... This would be key for annual climate-related loss and damage costs, estimated to be between $290-$580 billion by 2030 in low-income countries, as well as for reducing the emission of heat-trapping greenhouse gases and adapting to the impacts of the climate crisis in all countries.
"This research shows how taxing the wealthy polluters-in-chief—companies like Exxon, Chevron, Shell, Total, Equinor, and Eni—has become a mainstream solution among people, cutting across borders and income levels," said Stop Drilling, Start Paying co-chair Abdoulaye Diallo. "As governments debate how to finance climate action, they can be confident that making polluters pay is not only fair, but also far more popular and effective than placing the burden on ordinary citizens for a crisis for which they bear little or no responsibility."
The Opinium survey was published on the same day that Amnesty International called on the richer countries most responsible for the climate emergency to "fully pay for the catastrophic loss of homes and damage to livelihoods" in Africa.
"African people have contributed the least to climate change, yet from Somalia to Senegal, Chad to Madagascar, we are suffering a terrible toll of this global emergency which has driven millions of people from their homes," said Samira Daoud, Amnesty's regional director for West and Central Africa. "It's time for the countries who caused all this devastation to pay up so African people can adapt to the climate change catastrophe."
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Only 7 Countries Meet WHO's Air Quality Guidelines as Fossil Fuels Worsen Pollution
"The science is pretty clear about the impacts of air pollution and yet we are so accustomed to having a background level of pollution that's too high to be healthy," said an official at Swiss firm IQAir.
Mar 19, 2024
A Swiss air quality monitoring firm on Tuesday said its latest worldwide data reveals the need for more walkable cities and a swift transition away from planet-heating fossil fuels, as just 7 out of 134 countries were found to meet global standards for dangerous air pollution.
IQAir found that Australia, Estonia, Finland, Grenada, Iceland, Mauritius, and New Zealand were the only countries that met the World Health Organization's (WHO) guidelines for particulate matter 2.5 (PM2.5) pollution, which is made up of microscopic airborne particles and can become embedded in peoples' lungs and even their bloodstreams, especially in cases of high exposure.
Three territories—Bermuda, French Polynesia, and Puerto Rico—also met WHO's standard.
PM2.5 can cause or aggravate asthma and has been linked to worsened lung function, heart attacks, respiratory ailments, and irregular heartbeat.
While IQAir measured countries' air quality against WHO's guideline for "safe" PM2.5 levels—five micrograms per cubic meter—U.S. scientists found last month that there is no safe amount of PM2.5 for humans.
IQAir found that PM2.5 levels were highest in the Global South. Bangladesh was found to have more than 15 times the amount of PM2.5 pollution than what is advised by WHO, while Pakistan's level was 14 times higher. The most polluted metropolitan area in 2023 was Begusarai, India, and India had four of most polluted cities in the world.
But "things have gone backwards" in wealthy countries as well, Glory Dolphin Hammes, North America chief executive of IQAir, told The Guardian, particularly as planetary heating has fueled wildfires like those that stunned scientists in Canada and Europe last year.
Canada, long a leader in air quality, had a PM2.5 level of 10.3 in 2023, and air quality across North America was "significantly influenced by extensive Canadian wildfires that raged from May to October." More than 40% of Canadian cities recorded annual PM2.5 levels that exceeded 10 micrograms per cubic meter. Eleven percent, or 35 cities, exceeded 15 micrograms per cubic meter, compared to just a single city in 2022.
World Weather Attribution directly linked Canada's wildfires to the climate emergency,
saying fossil fuel combustion and the resulting planetary heating made the blazes twice as likely.
The country's PM2.5 levels last year showed that governments "should act to make their cities more walkable and less reliant upon cars, amend forestry practices to help curtail the impact of wildfire smoke, and move more quickly to embrace clean energy in place of fossil fuels," Hammes told The Guardian.
"The science is pretty clear about the impacts of air pollution and yet we are so accustomed to having a background level of pollution that's too high to be healthy," she said. "We are not making adjustments fast enough."
Robb Barnes, climate program director for the Canadian Association of Physicians for the Environment, said the report shows Canada is "no exception" as governments are urged to confront the fact that "climate change, pollution, and burning fossil fuels is disastrous for human health."
Air pollution is blamed for an estimated 7 million premature deaths each year, with countries in the Global South—where clean energy sources are less available for heating and other uses—reporting the most deaths linked to PM2.5.
Frank Hammes, global CEO of IQAir, noted that much of the Global South, including many countries in Africa, lack air quality monitoring mechanisms.
"A clean, healthy, and sustainable environment is a universal human right. In many parts of the world the lack of air quality data delays decisive action and perpetuates unnecessary human suffering," said Hammes in a statement. "Air quality data saves lives."
In order to prevent more premature deaths linked to PM2.5 pollution, the report said, policymakers in Canada and other wealthy countries where air quality suffered in 2023 must take decisive steps to decrease PM2.5 emissions from fossil fuel-powered vehicles, power plants, and industrial processes, including:
- Broadening the adoption of renewable, clean energy in public transportation systems;
- Providing subsidies for battery-powered and human-powered modes of transportation;
- Championing infrastructure projects that enhance pedestrian mobility; and
- Introducing incentive programs to stimulate the adoption of clean air vehicles for commercial and personal purposes.
"IQAir's annual report illustrates the international nature and inequitable consequences of the enduring air pollution crisis," said Aidan Farrow, senior air quality scientist for Greenpeace International. "In 2023 air pollution remained a global health catastrophe. IQAir's global data set provides an important reminder of the resulting injustices and the need to implement the many solutions that exist to this problem."
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