Climate Action

Last updated: 11 June 2021

This review asks: What is the progress 5 years after the Paris Agreement? Which organizations have or are planning to divest from fossil fuels? Which organizations are refusing to keep fossil fuels in the ground? How much have some companies lost by choosing not to divest from Fossil Fuels? How has the coronavirus impacted carbon emissions in 2020? How do certain government practices hinder climate action?

What is the progress 5 years after the Paris Agreement?

In May 2015, G7 leaders of the UK, US, Canada, France, Germany, Italy, Japan and the EU urged all countries to join them in eliminating support for coal, oil and gas in a decade by 2025. Shelagh Whitley, a research fellow at the Overseas Development Institute, called it an “historic day” but said 2020 was a more appropriate date if governments were serious about their commitments to the global climate deal agreed in Paris in December (1).

In December 2020, on the fifth anniversary of the Paris climate agreement, the summit heard the UN Secretary General warn that every country needed to declare a climate emergency as only 45 countries had put forward new climate plans for 2030. In response to this, the UK pointed to its new commitment on overseas fossil fuel projects as well as a new carbon cutting target of 68% by 2030; the EU presented a new 2030 target of a 55% cut in emissions, agreed after all-night negotiations this week; China's President Xi Jinping announced that the country would reduce its carbon emissions per unit of gross domestic product (GDP) by over 65% compared with 2005 levels. China will also increase the share of non-fossil fuels in primary energy consumption by about 25%. And President Xi pledged to increase forest cover and boost wind and solar capacity (2)

Which organizations have or are planning to divest from fossil fuels?

More than 1,300 institutions controlling $14.5 trillion have divested in some way from fossil fuels, according to a tally by environmental group 350.org. Among them is The Rockefeller Foundation, a 107-year-old philanthropy built by oil tycoon John D. Rockefeller, which announced that it is breaking up with fossil fuels in an effort to save the planet, weeks after New York State's $226 billion pension fund pledged to dump fossil fuel stocks in the next five years and unload investments in companies that contribute to global warming by 2040. The @divestinvestorg movement has 1,000+ partners with nearly $15,000,000,000,000 in managed assets (3).

Which organizations are refusing to keep fossil fuels in ground?

Hewlett Foundation, a major voice in the climate philanthropy space that has chosen not to divest. CEO Larry Kramer explains that because of Hewlett’s size, divesting would have a negative impact on their returns. Hewlett’s endowment is nearly $10 billion. Similarly, the UK’s Wellcome Trust, which is the world’s fourth-biggest foundation with an endowment of ￡26 billion, mirrors Hewlett Foundation’s approach as Wellcome announced plans to focus funding on global heating but still intend to invest in fossil fuels yet argues that the influence of being an investor allows for more meaningful change (3).

‘Our position remains that we’ve chosen to be an active shareholder. So, we choose to engage with the companies that we invest in, in order to enable them to be a responsible citizen in the world. We feel there has been benefits from being in the room and arguing for a pathway that you wouldn’t necessarily get if you do the one-time divestment and are outside of it. So, the position we’ve taken is to be in the room – we know that that’s not something that everyone agrees with. And it’s something that we continue to debate inside Wellcome, but it is about also trying to be an agitator for a more sustainable pathway for the future as well.’ Ed Whiting, Wellcome Director of Strategy (3)

However, the ‘Decades-old excuses are wearing thin’ and Chu and Dorsey see it differently than Ed Whiting at Wellcome: ‘Our investments should not drive the problems we ask our grantees to solve, nor should we leave valuable money on the table that could scale solutions in service of our environment or our communities. To pretend that our investments have no impact on our mission is patently false.’ ‘Philanthropy has a unique role to play. Just like it is time for a new economic model, it is time for a new model of philanthropy where we are accountable for our impacts – from our operational practices, our grants, and our investments – and accountable to our stakeholders. In doing so, we will embody the values of a new economy while we help create it. Our two foundations believe that the compounding crises the world faces today are so urgent, there can be no business as usual for philanthropy.’ (3)

How much have some companies lost by choosing not to divest from Fossil Fuels?

@corporateknight examination of 14 major funds with a collective $1 trillion in assets in 2015, found that over $22 billion had been sacrificed as a result of not shifting out of Fossil Fuels into clean energy stocks in 2012 (4)

Why divest from fossil fuels?

Shell has warned the value of its oil and gas assets may fall by $22bn (￡16bn) in 2020 after shaving up to $4.5bn from its portfolio in the final quarter of the year as Shell’s FTSE 100-listed shares traded 6% lower on Monday at ￡12.98, down from highs of more than ￡23 in the first week of the year. The company has announced it would cut 9,000 roles and slashed the dividend for the first time since the second world war (5).

How has the coronavirus impacted carbon emissions in 2020?

Climate experts expected global carbon emissions from fossil fuels and cement production to rise in 2020, from an estimated 36.8bn tonnes of carbon dioxide last year. Instead, emissions may fall by about 5%, or 2.5bn tonnes of CO2, to its lowest levels in about a decade. Dr Fatih Birol, the head of the International Energy Agency, has warned against viewing the steep decline in emissions from fossil fuels as a climate triumph by saying: “This decline is happening because of the economic meltdown in which thousands of people are losing their livelihoods, not as a result of the right government decisions in terms of climate policies.” (6)

How do certain government practices hinder climate action?

Britain leads the EU in giving subsidies to fossil fuels as back in 2013-14 the environmental audit select committee found that “energy subsidies in the UK are running at about ￡12bn a year, much directed at fossil fuels”. It concluded that “the absence of any internationally agreed definition of what constitutes energy subsidy has provided a way for the government to reject – erroneously in our view – the proposition in some areas that it provides energy subsidies” (7). More recently, the International Energy Agency (IEA) watchdog has also found government fossil fuel subsidies total $400bn (￡300bn) each year (6).

Social Media

#ClimateAction #ClimateActionNow #KeepItInTheGround @350 @algore @ClimateReality @insideclimate @NRDC @ClimateDesk @MattMcGrathBBC @Hewlett_Found @lkramer @EllenD35 @WallaceGlobal @kindredmotes @SierraClub @_Croatan @350action @foe_us @grist @EnvDefenseFund @EcoWatch @eroohi @Alliancemag @divestinvestorg

References

1. G7 nations pledge to end fossil fuel subsidies by 2025 | Fossil fuels | The Guardian or https://twitter.com/BRAINCURES/status/1337798151525240833?s=20 
2. 'Not enough' climate ambition shown by leaders - BBC News or https://twitter.com/BRAINCURES/status/1337806507358957570?s=20
3. A $5 billion foundation literally founded on oil money is saying goodbye to fossil fuels: Exclusive - CNN or https://twitter.com/BRAINCURES/status/1340637126132723713?s=20 
4. What kind of world do you want to invest in? | Corporate Knights
5. Shell says assets could be worth $22bn less as Covid hits oil demand | Business | The Guardian
6. Carbon emissions from fossil fuels could fall by 2.5bn tonnes in 2020 | Environment | The Guardian
7. Britain’s hidden fossil fuel subsidies | Fossil fuels | The Guardian