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"Oil companies who are delaying climate action and pouring more fuel on the fire of global heating are using Big Tobacco's old playbook and trying to pass themselves off as patrons of sport."
Aramco, the state-owned Saudi firm, has the most sports sponsorships of any fossil fuel company in the world, with $1.3 billion in active deals, followed by Ineos, TotalEnergies, and Shell, according to a Wednesday report that compares the industry's methods to those once used by Big Tobacco.
The 23-page report, Dirty Money: How Fossil Fuel Sponsors Are Polluting Sport, details one of the ways in which countries and corporations "sportswash" their reputations: sponsorships of popular athletes, teams, events, or leagues. Other means of sportswashing, such as Saudi Arabia's development of a new golf tour and purchase of major soccer clubs, aren't included in the analysis, which was produced by the New Weather Institute (NWI), a climate think tank.
Aramco, which is about 98% owned by the Saudi Arabian government, is the most profitable company in the world and is responsible for over 4% of global carbon emissions since 1965, the most of any firm. It pays out more than $300 million per year in sports sponsorships in motorsports, soccer, golf, and cricket, with active deals worth about $1.3 billion over their lifespans, the report says.
Overall, the report authors found 205 sponsorship deals by the fossil fuel industry worth a total of $5.6 billion.
"Oil companies who are delaying climate action and pouring more fuel on the fire of global heating are using Big Tobacco's old playbook and trying to pass themselves off as patrons of sport," Andrew Simms, NWI's co-director, said in a statement.
The report emphasizes the negative impact fossil fuel companies have not just on the climate but also, more immediately, on public health—and the ability to play sports—citing research that shows the burning of their products leads to millions of excess deaths per year.
"Air pollution from fossil fuels and the extreme weather of a warming world threaten the very future of athletes, fans, and events ranging from the Winter Olympics to World Cups," Simms said. "If sport is to have a future it needs to clean itself of dirty money from big polluters and stop promoting its own destruction."
The dirty money polluting sport - our new report on how oil and gas companies are exploiting sport even as they destroy the climate conditions for it 👇👇👇 https://t.co/d4AItJnglv
— Andrew Simms (@AndrewSimms_uk) September 18, 2024
The term sportswashing, related to whitewashing and greenwashing, has gained use in the last decade as a way of describing efforts to distract attention from wrongdoing through affiliation with popular sports. Critics often levy the charge at Saudi Arabia and other Gulf states.
Saudi Arabia's sovereign wealth fund, which draws financing from Aramco, has reportedly spent more than $2 billion on its LIV Golf tour in the last three years. Saudi Arabia is expected host the World Cup in 2034, and neighboring Qatar did so in 2022, spending over $200 billion.
Saudi Arabia and Aramco have long been accused of greenwashing. Yet poor environmental credentials aren't their only public relations issue. The country, in addition to sourcing its wealth from planet-destroying fossil fuels, is led by an authoritarian regime that has a terrible human rights record, one under more scrutiny since the 2018 killing of Saudi journalist Jamal Khashoggi, who worked for The Washington Post.
In response to the sportswashing critique, Saudi leaders have been blunt and defiant.
"If sportswashing is going to increase my GDP by 1%, then we'll continue sportswashing," Crown Prince Mohammed bin Salman, the country's de facto leader, told Fox News last year.
In addition to Aramco, the NWI report focuses on three Western fossil fuel companies. Shell and Ineos, two U.K.-based multinationals, each spend more than $100 million per year on sponsorships in a wide variety of sports. TotalEnergies, a French multinational, spends more than $60 million.
The NWI report recommends that sports organizations institute tobacco-style bans on fossil fuel sponsorships and improve due diligence on donors and sponsors.
"Our report clearly lays out the way carbon capture tax credits rig the system in favor of the oil and gas industry to the tune of billions of dollars," one expert said.
As the U.S. moves to invest in climate solutions, is the money going toward projects that will meaningfully reduce emissions and transition the nation's energy system away from fossil fuels?
A report released Wednesday by worker-owned corporate accountability and environmental justice research organization Empower found that just 34 carbon capture and storage (CCS) projects in Texas could receive between $3.2 billion and $33 billion in annual tax subsides.
At the same time, most of the carbon dioxide pipelines in the state are managed by the major oil and gas companies like Kinder Morgan, Occidental Petroleum, and ExxonMobil that played a disproportionate role in creating the climate crisis in the first place.
"Carbon capture and storage is the most expensive and least effective carbon mitigation solution. It's really not where we need to be investing our money," said Paige Powell, the policy manager at Commission Shift, at a press briefing announcing the new research. "And the public dollars coming from the federal government to fossil fuel companies are our dollars, our taxpayer dollars that could be better spent elsewhere."
"I think it's important for us to ask ourselves, if carbon capture is receiving so much public dollars, why is there little public input?"
For its report, Empower turned up 98 carbon dioxide-related projects in the state of Texas, including 47 pipelines and 13 Class VI Geological Storage projects. These projects are currently primarily funded through tax breaks and U.S. Department of Energy (DOE) subsides; the report authors found little evidence of any private investments.
"Our report clearly lays out the way carbon capture tax credits rig the system in favor of the oil and gas industry to the tune of billions of dollars," Empower's Samuel Rosado said in a statement. "Public funding and tax breaks are the largest sources of revenue for CCS projects. Without the massive federal investment, the private sector deems most CCS projects unprofitable."
The main tax credit for CCS is the 45Q tax credit, which assigns a dollar amount for every metric ton of carbon dioxide captured and permanently stored. While this credit was first created by the Energy Improvement and Extension Act of 2008, the Inflation Reduction Act expanded it, raising the credit to $85 per metric ton. At the same time, the Infrastructure Investment and Jobs Act earmarked more than $8 billion for the DOE's CCS programs.
"These are the key bills that were enacted that enabled CCS to be at least more financially available than it previously was," Rosado said in the briefing.
Yet climate and accountability advocates are concerned that the money is being misdirected.
Powell noted that CCS technology had been around for 50 years, but had failed to advance.
"All of these projects have been largely unprofitable, and they haven't expanded the way that renewables and other climate solutions have, primarily because the technology is problematic," Powell said. "It's unsafe, it's fraught with mechanical failures, and not to mention wildly expensive when compared to other climate solutions."
Dominic Chacon of the Texas Campaign for the Environment said that industry boosting of CCS amounted to a form of "greenwashing."
"It is essentially a marketing PR branding ploy to downplay the obvious risks associated with fossil fuels, to try and rebrand this industry as something that we need for the future," Chacon said.
Autumn Hanna, the vice president of Taxpayers for Common Sense, noted that there was a history of fraud in past allocation of CCS subsidies.
"A Treasury investigation found that from 2010 to 2019, 90% of tax credit claimants failed to comply with IRS [Internal Revenue Service] and EPA [Environmental Protection Agency] requirements," Hanna said in a statement. "Instead of throwing good money after bad, we should focus our limited resources on climate solutions we know are safe and effective."
At the same time, most federal CCS subsides actually ended up going toward injecting carbon dioxide into depleted oil wells in order to extract even more oil, which is currently the only profitable use of the technology.
"Continuing to funnel these subsidies and tax breaks to the oil companies, which mostly use it to extract more fossil fuels, really weakens its supposed climate benefits," Hanna said in the briefing.
In Texas specifically, there are concerns about the safety of CCS infrastructure and its impact on ecosystems and communities, given the state's weak regulatory culture.
"We need to chart a new course here in Texas and in Washington to incentivize climate solutions that actually work."
"Our state oil and gas regulator, the Railroad Commission of Texas, is reluctant to oversee the industry in a way that protects people and the environment," Powell said.
The Empower report found that 19 CCS projects overlap with at least 24 million acres of water, threatening both coastal and river environments. The report authors also ran into a lack of transparency.
After filing Freedom of Information Act (FOIA) requests to the Environmental Protect Agency to access data about CCS projects, they received documents with entire pages redacted on the behest of the companies and with the permission of the EPA.
"This is very dangerous when it comes to corporate accountability and transparency on environmental issues, because entire pages were redacted from FOIA requests and public information requests that are incredibly important for communities and safety in these communities," Rosado said.
The advocates called for greater transparency and accountability around public financing for untested and expensive climate solutions.
"I think it's important for us to ask ourselves, if carbon capture is receiving so much public dollars, why is there little public input?" Chacon asked. "There is no public transparency on this technology."
Hanna called for putting "the breaks on the whole thing until we start to really answer some big questions that are out there instead of just autopilot expansions and extensions that carry huge costs and, again, leave us with these big questions and this lack of transparency and oversight."
Community organizations in the Lone Star State are petitioning the EPA to reject the Texas Railroad Commission's request to have primary oversight over CCS projects in the state.
"Allowing Texas to continue down this path is irresponsible and only serves oil and gas interests. That's why it's critical that the Environmental Protection Agency not hand over regulation of dangerous CCS projects to the Railroad Commission of Texas, which has shown that it's in the pocket of fossil fuel companies, which stand to profit while putting our communities at risk," Powell said in a statement. "We need to chart a new course here in Texas and in Washington to incentivize climate solutions that actually work."
To that end, Commission Shift is also urging concerned residents to comment on new EPA draft permits for CCS projects in the Permian Basin.
"Let them know we need an extension to review the permits and that we really just don't want these here in the Permian, it's not the right place for all these projects," Powell said.
"Two years on from the signing of the landmark biodiversity plan, we continue to finance our own extinction, putting people and our resilience at huge risk."
Governments across the world now spend a total of $2.6 trillion per year on subsidies that harm the environment, jeopardizing global climate and biodiversity targets, according to an analysis released Tuesday.
The analysis came in an updated report from the research group Earth Track, which found that harmful fossil fuel subsidies top $1 trillion annually and harmful agricultural subsidies top $600 billion. Governments also fund pollution and destruction in sectors such as water, construction, transport, forestry, and fisheries.
The $2.6 trillion total, which the report authors said was likely an underestimate, marked an $800 billion increase—or about $500 billion in real dollars—from $1.8 trillion cited in the initial report, released in February 2022.
In December 2022, the world's nations agreed to the Kunming-Montreal Global Biodiversity Framework, a deal that included, as target 18, a commitment to identify environmentally harmful subsidies (EHS) by 2025 and reduce them by $500 billion by 2030.
"Two years on from the signing of the landmark biodiversity plan, we continue to finance our own extinction, putting people and our resilience at huge risk," Christiana Figueres, the United Nations' chief climate diplomat when the Paris agreement was signed in 2015, told The Guardian. "Estimates are higher than previously thought—with at least $2.6 trillion now funding the destruction of nature, endangering the chances of meeting our nature and climate goals."
Private interests usually benefit from the harmful subsidies. Bill McGuire, an emeritus professor of earth sciences at University College London, responded to Earth Track's findings by spelling out this out.
"Want to know how criminally insane our political-economic system is?" he wrote on social media. "We are actually paying corporations to destroy the planet."
Global spending on subsidies that harm environment rises to $2.6tn (£2tn).
Subsidies for fossil fuels, deforestation, over fishing, intensive farming, water pollution.
Companies and shareholders profit, people pick up the tab for consequences.https://t.co/g7VCeA4SLI
— Prem Sikka (@premnsikka) September 18, 2024
The report shows the massive scale of government investment in EHS across the world, with the $2.6 trillion total for 2023 amounting to about 2.5% of global gross domestic product.
Other estimates of EHS have been even higher. An International Monetary Fund working paper last year estimated that fossil fuel subsidies alone amount to $7 trillion annually. Subsidies are difficult to quantify as some are implicit, such as not applying an excise tax on fossil fuels that damage the environment.
Report co-author Doug Koplow of Earth Track told Common Dreams that the IMF paper included more externalities "rather than just fiscal subsidies," based on his recollection.
The Earth Track report found that increased global fossil fuel subsidies following the Russian invasion of Ukraine were the main reason for the $800 billion increase since the last report was written. "This example highlights the sensitivity of EHS to macroeconomic conditions," the report says.
In a statement, Koplow emphasized the importance of the cross-sectoral analysis, arguing that sectors, such as agriculture, are too often looked at in isolation. "It is the combined effect of subsidies to these sectors that compound to drive loss of nature and biodiversity resources," he wrote.
The analysis comes amid an onslaught of extreme weather this year that's been made more likely by fossil fuel-driven climate breakdown. Large-scale flooding devastated Central Europe this week, killing more than 20 people. The planet has seen record temperatures for 15 straight months.
Biodiversity loss also continues apace, with experts calling for strong action as the COP16 meeting of the United Nations Convention on Biological Diversity is set to begin in Colombia on October 21.
"These extreme weather events that used to be once in a lifetime are now an almost annual occurrence," said Janez Lenarčič.
With the Portuguese government declaring a "state of calamity" over wildfires that have killed at least seven people, and the daily lives of hundreds of thousands of people in Central and Eastern Europe upended by deadly flooding, the European Union's top crisis official said the bloc must face the reality made evident by the disasters: "This is fast becoming the norm for our shared future."
A year after Europe was found to be the world's fastest-warming continent in an analysis by the World Meteorological Organization (WMO) and the E.U.'s Copernicus Climate Change Service (C3S), crisis management commissioner Janez Lenarčič told the European Parliament on Wednesday that "the global reality of the climate breakdown has moved into the everyday lives of Europeans."
"Make no mistake. This tragedy is not an anomaly," said Lenarčič. "We face a Europe that is simultaneously flooding and burning. These extreme weather events that used to be once in a lifetime are now an almost annual occurrence."
As countries including Poland, Romania, Austria, and the Czech Republic were reeling from flooding caused by Storm Boris in recent days, more than 478 square miles in Portugal's northern region were torched by fast-moving wildfires that started over the weekend.
Dozens of homes have been destroyed by more than 100 separate wildfires as officials deployed 5,000 firefighters to try to control the blazes on Wednesday. Spain, France, and Italy—which is now also preparing for heavy rainfall like the torrential downpour that inundated Central and Eastern Europe—contributed waterbombing aircraft.
Lenarčič focused his address largely on the need to ramp up disaster preparedness, noting that the rise in costs for repairing infrastructure destroyed by storms and fires has ballooned in recent decades.
"The average cost of disasters in the 1980s was 8 billion euros per year," said Lenarčič. "Meanwhile in 2022 alone, the damages surpassed 50 billion euros per year... The cost of inaction is far greater than the cost of action."
Lenarčič called on the European Commission to work closely with E.U. member states to implement the bloc's Floods Directive and a robust water resilience strategy to tackle catastrophic flooding and water shortages.
"Such challenges cannot be tackled solely through the limited portfolio of civil protection," the commissioner said.
The Left in the European Parliament, a coalition of progressive parties, echoed Lenarčič's call to strengthen civil protection, but also emphasized the need to tackle "climate change and its impacts."
Progressives in Parliament have pushed member states to meet the goals set by the European Green Deal, a set of climate policies aimed at ensuring net-zero fossil fuel emissions by 2050 and slashing emissions by at least 55% by 2030.
"Our success will depend on how determined we are to combat climate change together in order to reduce emissions," said Terry Reintke, a German lawmaker who is co-president of the Greens/European Free Alliance (EFA) group in the European Parliament.
With right-wing parties making significant gains in the bloc's parliamentary elections in June, analysts have said passing ambitious climate policies and targets will be more difficult.
Following the implementation of parts of the Green Deal, emissions are down by nearly a third from 1990 across the bloc, and member states are building wind and solar infrastructure. But right-wing leaders have pushed to block a ban on new gas- and diesel-powered cars that was set to take effect in 2035.
Far-right Italian Prime Minister Giorgia Meloni said in June that the proposed ban "was an ideological folly, which absolutely must be corrected."
On Wednesday, Italy's civil protection service issued 50 yellow alerts for the Emilia-Romagna and Marche regions, warning that the areas would face the risk of landslides and flooding as they are expected to see the equivalent of two months of rainfall in the next three days.
The heavy rains have moved across Central Europe from parts of the Czech Republic, Austria, Romania, and other countries, with at least 21 people killed by flooding.
"The E.U. must do everything in its power to help those affected by the devastating floods in many different E.U. countries," said the Greens/EFA. "These floods show that more than ever our fight against climate change is a common social and economic challenge we must tackle together."