Amidst waves, wildfires, and extreme weather events, environmentalists are intensifying pressure on fossil fuel producers, emphasising the need for a closer assessment of their role in the environmental crisis. As the COP28 conference approaches in Dubai, the UN Climate Ambition Summit is expected to bring the fossil fuel industry to account for its contribution to the climate crisis.
However, the recent success of fossil fuel producers in obstructing an historic agreement raises concerns that oil and gas companies may try to wriggle out of decisions by the conference.
Despite overwhelming evidence of the devastating environmental impact caused by fossil fuel production, these companies have persistently refused to take responsibility and reduce their production. This obstinacy has only grown stronger after they posted record profits in 2023, reinforcing their commitment to business as usual.
Many environmentalists fear that the stubbornness of fossil fuel producers could considerably influence the outcomes of the upcoming COP28. Given that this conference is a crucial platform for negotiating global climate action, the participation and influence of these companies remain a lingering concern.
In response to these concerns, oil companies argue that they should be included in the negotiation process as part of the solution instead of being excluded. They believe that their expertise and resources could contribute to the development of sustainable alternatives and a smooth transition towards cleaner energy systems. However, this assertion should be taken with a pinch of salt, considering their long history of putting profits over environmental conservation.
As a result, environmental campaigners are calling for fossil fuel producers to contribute to a new fund specifically designed to assist economically disadvantaged countries in dealing with climate-related disasters. Termed the “loss and damage fund,” it was a notable achievement of the previous year’s UN climate summit in Egypt. Developing nations have persistently requested increased financial support to cope with the impacts of global warming, primarily caused by historical pollution from wealthier nations.
While it is intended that the funding for this fund be provided by wealthy nations, some studies indicate that oil and gas companies can still pay into the fund while continuing to generate profits. In fact, a report published by think tank Climate Analytics suggests that if the top 25 oil and gas companies had been held accountable for their contribution to global warming in recent decades, they would have still accumulated $10 trillion in profit.
However, the dream of obliging oil companies and wealth funds financed by oil and gas sales to pay into this fund in order to assist poorer countries in adapting to climate change consequences might be far-fetched and difficult to achieve. Additionally, even if funding were secured, it is uncertain whether it would truly alleviate the worsening climate catastrophe gripping the planet. The unprecedented heatwaves, wildfires, and extreme weather events witnessed in recent years are the direct consequences of long-term fossil fuel consumption and subsequent greenhouse gas emissions. Therefore, while financial aid to impacted nations is necessary, addressing the root cause of climate change necessitates a more comprehensive approach.
According to a report produced by several organisations, including the Stockholm Environment Institute, Climate Analytics, E3G, International Institute for Sustainable Development, and UNEP, countries should strive for a near-total phase-out of coal production and usage by 2040, as well as a combined reduction in oil and gas production and usage by at least three-quarters by 2050, based on 2020 levels.
To effectively tackle the climate crisis, fossil fuel producers must prioritise the phase-out of their production and invest in renewable energy sources. This transition will not only mitigate the environmental impact but also serve as a long-term solution to combat global warming.
It is imperative that these companies acknowledge their responsibility and actively engage in finding sustainable solutions to the environmental crisis.
