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"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."
"It is high time for the American public to understand just how much charitable money is funding climate change disinformation and to recognize the key individuals behind this effort."
A report published Wednesday identifies nearly 140 "climate disinformation organizations" in the United States financed by wealthy donors who receive massive subsidies from the nation's taxpayers.
The analysis by the Institute for Policy Studies (IPS) and the Climate Accountability Research Project (CARP) explains that wealthy donors are "pouring billions of dollars" into nonprofit organizations to "advance misleading, self-serving agendas that do irreparable harm to our planet"—all while reaping the benefits of charitable contribution deductions in the U.S. tax code.
"Funds directed to fossil fuel industry-friendly think tanks and policy groups help turn disinformation into accepted truth and sow doubt about science," the analysis notes. "Then, these ideas get turned into action—or, more often, inaction—by the policy brass of lawmakers and presidential administrations."
The new report highlights "two troubling examples of this chain of influence: The Competitive Enterprise Institute, or CEI, received $21 million in charitable contributions from 2020 to 2022; it bills itself as 'instrumental' both in blocking ratification of the 1997 Kyoto Protocol and in pressuring former President [Donald] Trump to withdraw from the 2016 Paris agreement."
"And the Heritage Foundation received $236 million in contributions over the same three years; this money allowed Heritage to write Project 2025, a policy blueprint overseen by several former Trump administration appointees, that proposes changes to the Department of Energy and the Environmental Protection Agency that would be disastrous for our climate," the report adds.
IPS and CARP estimate that donors to the two right-wing organizations were able to deduct "much of" their $257 million in gifts—effectively receiving major public subsidies.
"We are calling for fundamental transparency reforms so we can assess the total amount of taxpayer-subsidized charitable donations flowing to climate disinformation organizations."
In total, the report counts 137 "climate disinformation" nonprofits that received charitable donations between 2020 and 2022, with six of them focused "largely or entirely" on climate issues. The 137 organizations collectively received $5.8 billion in contributions over the three-year period examined in the analysis, which estimates that the total sum the nonprofits spent on climate disinformation "could range anywhere from a conservative $219 million into the billions of dollars."
The three "climate disinformation charities" that held the most in assets in 2022, according to the new report, were the Charles Koch Institute, the Heritage Foundation, and the Seminar Network.
Between 2020 and 2022, the climate disinformation groups that received the most in total contributions were the Seminar Network, the Stand Together Foundation, and the 85 Fund—an organization connected to Federalist Society co-chair Leonard Leo.
Chuck Collins, director of IPS' Program on Inequality and a co-author of the report, said in a statement that the analysis "provides some much-needed transparency so that the American public can understand the deceptive ways in which the rich seek to advance and protect their interests."
"Based on our findings from the data sources available to us, we are calling for fundamental transparency reforms so we can assess the total amount of taxpayer-subsidized charitable donations flowing to climate disinformation organizations," said Collins. "Many of these donors have built their fortunes in energy or the banking, insurance, transportation, and legal businesses that support the carbon-intensive industries, so they have strong personal interests in ensuring the world's dependence on fossil fuels."
The report notes that wealthy donors have recently been funneling billions of dollars into so-called donor-advised funds (DAFs), which IPS and CARP describe as a kind of "charitable bank account: a donor can donate to a personalized fund managed by a sponsoring nonprofit organization, and take a charitable deduction for that donation right away, but the donor then retains advisory privileges that let them recommend grants out of the fund to whichever charities they want, on whatever timeline they want."
IPS and CARP found that the three largest sponsors of DAFs between 2020 and 2022 were the National Philanthropic Trust, the Schwab Charitable Fund, and DonorsTrust.
"Because DAFs have a near-complete lack of donor and grantee reporting requirements, they allow for a high level of secrecy in donating funds," the report observes.
Private foundations are also major funders of climate disinformation, according to the new report, which lists the Sarah Scaife Foundation, Searle Freedom Trust, and the Lynde and Harry Bradley Foundation, among others.
The report outlines a number of potential policy changes to stem the ability of individuals and organizations with fossil fuel ties to secretively finance climate disinformation with the help of taxpayer subsidies, including barring private foundations from "using grants to donor-advised funds to meet their payout requirements" and requiring DAF sponsors to disclose "the names of all individual donors who have contributed $10,000 or more to each DAF account."
"It is high time for the American public to understand just how much charitable money is funding climate change disinformation and to recognize the key individuals behind this effort," the analysis says.
"The Fair Share NDC is more than just a pledge, it is a road map for how the U.S. can prevent the coming catastrophe," said one campaigner.
A coalition of climate campaigners on Tuesday published a proposal "for how the U.S. can play a bigger role in tackling the global climate emergency."
Described as "a civil society model document for the U.S. climate action pledge submission to the United Nations Framework Convention on Climate Change" under the landmark Paris agreement, the Fair Share Nationally Determined Contribution (NDC) is a "comprehensive plan for the United States to significantly reduce greenhouse gas emissions and enhance climate action in an equitable way both domestically and internationally."
Russell Armstrong, international policy liaison at the U.S. Climate Action Network, a member of the coalition, explained that "the Fair Share NDC is more than just a pledge, it is a road map for how the U.S. can prevent the coming catastrophe."
The plan sets targets for the U.S. to slash domestic carbon dioxide emissions by 80% by 2035 from 2005 levels, in line with "scientific standards and universally accepted global justice principles."
Allie Rosenbluth, U.S. program manager at coalition member Oil Change International, said: "The U.S. has a long way to go to become the climate leader the world needs. It's the largest producer of oil and gas in human history, and it plans to expand fossil fuels far beyond what's compatible with a livable climate."
"The Fair Share NDC shows what the U.S. must do to change course, starting with an equitable phaseout of fossil fuels and paying its fair share to the countries dealing with the consequences of U.S. extraction," she added.
The proposal is centered on a phased approach to ending all fossil fuel production, with coal to be eliminated by the end of the decade and oil and gas by 2031. The plan also proposes the development of "robust public transportation infrastructure and transitioning to 100% clean energy by 2030."
"This transition will also be fair, funded, feminist, and equitable," the report states. "A funded fossil fuel phaseout means that wealthy Global North countries commit to paying their fair share for fossil fuel phaseout in their own countries and in the Global South. A feminist fossil fuel phaseout means a gender-just energy transition from an extractive, fossil-fueled economy to a regenerative, care-based economy that sustains life and well-being for all."
According to Oil Change International:
The U.S.' historic emissions are so large that the U.S. cannot mitigate enough emissions domestically to fulfill its "fair share" of responsibility for the climate crisis. It must also provide Global South countries annually with $106 billion in mitigation funding and $340 billion worth of adaptation and loss and damage funding by 2030. To mobilize money on such a scale, the U.S. can redirect funding for fossil fuel subsidies and military weaponry, and make wealthy elites and big polluters pay for the damages they've already caused. Finally, changing global rules on debt, taxes, trade, and technology will also significantly expand the fiscal space Global South countries have to finance their own transitions, lowering the overall bill.
The report warns that the U.S. must commit "to avoiding dangerous distractions and unproven technological solutions, such as
forest offsets; carbon market mechanisms; carbon capture and storage, direct air capture, enhanced oil recovery, and other false solutions that act as dangerous distractions to only delay phasing out of fossil fuel production."
Tuesday is False Solutions Day during the Global Week of Action for Climate Finance and a Fossil-Free Future, which runs from September 13-20 and focuses on pressuring Global North governments to "stop making empty promises" and "cease pandering to corporations to perpetuate fossil fuels."
Basav Sen, climate policy director at the Institute for Policy Studies, a member of the coalition, said in a statement that "the U.S. is the world's largest oil and gas producer and largest cumulative greenhouse gas emitter."
"It's time the U.S. took responsibility for its outsized role in causing the climate crisis," Sen added. "The Fair Share NDC is a pathway for the U.S. to actually become the climate leader it claims to be, both internationally and at home."