Quantcast
Popular

World's Richest Governments Aid Big Carbon's Efforts to Delay Climate Reckoning

One of President Obama's main climate policy thrusts was to persuade the world that since you often get what you pay for, the world should stop paying for more extreme climate disruption by subsidizing fossil fuels. Both the G7 and the G20 accepted Obama's lead—at least nominally.

Some countries did something. Revealingly, both rich and poor countries which were helping energy consumers get cheaper fuel reformed. The United Arab Emirates has dismantled its subsidy regime for gasoline. Indonesia eliminated its gasoline subsidies and capped diesel supports. India has moved very aggressively, first eliminating diesel supports, and now phasing out even the subsidized kerosene intended to help the off-grid poor pay for lighting their homes. (Dealing with electricity subsidies has proven a heavier lift).


But most richer countries, including the U.S. and China, the nations who started the clamor to get prices right haven't done so well. Their subsidies are mostly aimed at well-connected fossil fuel producers. Recent analysis shows that $60 billion a year is still flowing from 12 Organization for Economic Co-operation and Development members to oil, gas and coal producers, in a variety of forms, particularly export credits to encourage emerging markets to purchase oil, gas and coal technologies and equipment. This is four times as much subsidy as those same countries provide to clean energy.

So the world's strongest economies are handing out more than $60 billion in public funds to the world's biggest polluters, including some of the world's richest companies, aiding and abetting Big Carbon's effort to postpone the climate reckoning. At the same time they are pleading that their Treasuries are so depleted that they cannot keep their much less expensive long-standing promises to help finance the clean energy transition in developing countries.

Australia, for example, which was just chosen to lead the primary vehicle for climate aid, the Green Climate Fund, has provided $200 million for that agency. But Australia's Queensland State is proposing to spend $1 billion—five times as much—helping to build a single new railroad to enable an Indian mining company, Adani, to develop its Carmichael mine, a decision which caused one of Adani's competitors, Glencore, to snipe at "risky ventures that rely on taxpayer subsidies to get across the line and which will bring on massive volumes of additional coal supply into the market, which could undermine existing operations." (The Carmichael coal project is also expected to receive significant financial concessions on royalty payments).

The U.S., under President Trump, has become something of a caricature of what this fossil subsidy end game might look like. Trump campaigned with strong support from coal, oil and natural gas nationally—but messaged around his promise to bring back coal mining jobs in Appalachian states like Ohio, West Virginia and Kentucky.

Elected, he moved promptly to reverse a series of Obama administration regulations which would have improved environmental standards for oil, gas and coal extraction. Coal industry executive and even Kentucky Sen. Mitch McConnell conceded that these roll-backs, while good for coal company pocket books, would do nothing to bring back Appalachian jobs, which were being lost because of competition from cheaper strip-mined western coal, natural gas and renewables.

Trump next reversed a series of Obama reforms designed to ensure that companies mining fossil fuels from public lands paid fair royalties, and that leases were bid competitively. The roll-back added another billion dollars a year to the taxpayer give-away to public lands producers, but also made it even more difficult for labor intensive Appalachian coal miners to compete—speeding the loss of jobs. (The new administration's moves to lower environmental standards for gas drilling also hampered eastern coal).

How did Appalachian coal interests respond to the Trump administration giveaways to its competitors, western coal and natural gas? Predictably, they pled for even bigger subsidies for themselves. West Virginia Gov. Jim Justice, who just bolted the Democratic Party to join the GOP, asked Trump for a $15 federal subsidy for each ton of Appalachian coal, and claimed Trump had expressed support for the idea. If Congress were to appropriate these funds, it would add another $4.5 billion to the total U.S. government pay-off to fossil fuel producers.

But while these outrageous political payoffs waste taxpayer money and keep uncompetitive coal projects alive for a few more years, they don't change the underlying market realities. Last month the CEO of CSX railroad, founded to haul coal, and still getting a fifth of its revenue from the fuel, told analysts "Fossil fuels are dead….That's a long-term view. It's not going to happen overnight. It's not going to be in two or three years. But it's going away, in my view." And he backed up that prediction by revealing that his company would no longer make capital investments in its coal hauling business—no more locomotives designed to haul coal, no more investments in additional trackage—CSX is just going to let its coal business gradually wither. This week a Houston based energy trader told Bloomberg, "All the power market people that I know, we all think coal is going to zero."

So when you read claims that renewable energy isn't competitive yet with fossil fuels, or that it is economics that is slowing down the transition to clean energy, remember—the world's richest governments are throwing taxpayer money at well connected oil, gas and coal companies, cosseting these giants from the grim realities of true market costs—they represent a no-longer competitive past, and our health, our security, our climate and our economy will be better off the faster we move to the future of clean, low-carbon and cheaper energy sources.

Show Comments ()
Sponsored
LNG tanker. kees torn, CC BY-SA 2.0

GOP Senators, Fueled by Industry Cash, Propose Bill to Expedite Small Scale LNG Exports

By Steve Horn

U.S. Senator Marco Rubio (R-FL) and U.S. Senator Bill Cassidy (R-LA) have introduced a bill to fast-track the regulatory process for the export of small-scale liquefied natural gas (LNG).

The bill, titled "Small Scale LNG Access Act," was introduced on Oct. 18 and calls for amending the "Natural Gas Act to expedite approval of exports of small volumes of natural gas." The proposed legislation follows in the footsteps of the U.S. Department of Energy's (DOE) proposed rule which would assume that all U.S. small-scale exports of LNG, with the gas mostly obtained via hydraulic fracturing ("fracking"), is in the "public interest" as defined by the Natural Gas Act.

Keep reading... Show less
Scott Pruitt. Gage Skidmore / Flickr

EPA Pulls Scientists From Talk on Climate Change, Highlighting Fears Agency Is 'Muzzling' Staff

Ever since Scott Pruitt took the helm of the U.S. Environmental Protection Agency (EPA), he has worked to undo decades of hard-fought climate protections, denied that carbon dioxide is a "primary contributor" to climate change, and even removed mentions of the term "climate change" from agency websites.

Now, the agency has canceled the speaking appearances of three of its scientists to discuss the topic at a conference in Rhode Island on Monday, highlighting "widespread concern that the EPA will silence scientists from speaking publicly on climate change," the New York Times reported Sunday.

Keep reading... Show less
Pixabay

Snow Leopards Still Threatened by Consumer Demand for Skins and Body Parts

Today is International Snow Leopard Day, a global observance commemorating the signing of the Bishkek Declaration on the conservation of snow leopards in 2013.

The snow leopard has been listed on the IUCN Red List as "Endangered" since 1986, although it recently had its threat status downgraded to "Vulnerable."

Keep reading... Show less

Dr. Michael Mann on Extreme Weather: 'We Predicted This Long Ago'

You can't go far in the climate movement without hearing the name of Dr. Michael E. Mann, distinguished professor of atmospheric science at Penn State University and author of The Hockey Stick and The Climate Wars and, more recently, The Madhouse Effect.

Dr. Mann came to public attention back in 1998 when he and two colleagues published the landmark MBH98 paper documenting average global temperatures across the centuries with a line graph whose steep uptick in recent years earned it the name "the hockey stick." The paper—with its inconvenient truth about the consequences of fossil fuels—made him a target for climate deniers, but Dr. Mann refused to be silenced and has become one of America's leading public voices for a scientific and rational approach to climate change.

Keep reading... Show less
Sponsored
Food
The Dutch Weed Burger is made from three types of algae. The Dutch Weed Burger

How Marine Algae Could Help Feed the World

By William Moomaw and Asaf Tzachor

Our planet faces a growing food crisis. According to the United Nations, more than 800 million people are regularly undernourished. By 2050, an additional 2 to 3 billion new guests will join the planetary dinner table.

Meeting this challenge involves not only providing sufficient calories for every person, but also assuring a balanced diet that includes the protein and nutrients that are essential to good health. In a newly published study, we explain how marine microalgae could be a sustainable solution for solving global macro-hunger.

Keep reading... Show less
Animals
A Bureau of Land Management contractor's helicopter forces a wild horse into a trap during the recent roundup at the Salt Wells Creek. Steve Paige

Brutal Outlook for Healthy Wild Horses and Burros: BLM Calls for Shooting 90,000

On Thursday, the National Wild Horse and Burro Advisory Board recklessly voted to approve recommendations that call on the Bureau of Land Management to shoot tens of thousands of healthy wild horses and burros.

At its meeting in Grand Junction, Colorado, the advisory board recommended that BLM achieve its on-range population goal of 26,715 wild horses and burros while also phasing out the use of long-term holding facilities—both within three years.

Keep reading... Show less
Sponsored
Popular
www.youtube.com

‘Geostorm’ Movie and Climate Hacking: Are the Dangers Real?

By Jane A. Flegal and Andrew Maynard

Hollywood's latest disaster flick, "Geostorm," is premised on the idea that humans have figured out how to control the earth's climate. A powerful satellite-based technology allows users to fine-tune the weather, overcoming the ravages of climate change. Everyone, everywhere can quite literally "have a nice day," until—spoiler alert!—things do not go as planned.

Admittedly, the movie is a fantasy set in a deeply unrealistic near-future. But coming on the heels of one of the most extreme hurricane seasons in recent history, it's tempting to imagine a world where we could regulate the weather.

Keep reading... Show less
Popular
Area 1002 of the Arctic National Wildlife Refuge coastal plain. Wikimedia Commons

GOP-Controlled Senate Paves Way for Oil Drilling in Alaska's Arctic National Wildlife Refuge

The Senate Republicans' narrow passage of the 2018 budget plan on Thursday opened the door for oil and gas drilling in the Arctic National Wildlife Reserve (ANWR).

But Democratic lawmakers and environmental groups criticized the GOP for sneaking the "backdoor drilling provision" through the budget process. Past proposals to drill in the refuge have consistently failed.

Keep reading... Show less
Sponsored

mail-copy

Get EcoWatch in your inbox