April, 21 2023, 01:14pm EDT
Rescinding Trump’s Shields For Non-Bank Financial Firms Is A Crucial First Step
FSOC Must Act With New Framework To Prove That Its Legal Authorities Will Not Be Questioned
In response to the Financial Stability Oversight Council voting to publish a new analytic framework for designating non-bank financial firms as systemically important, Revolving Door Project Research Director Max Moran issued the following statement:
“This is a crucial first step from FSOC, but it cannot be the last step. Rolling back Trump’s framework just means that FSOC is allowing itself to see the financial system through a realistic lens. In Washington, allowing oneself to view the world realistically is a major achievement. But the point is to actually act on what one sees.”
“FSOC cannot be content just to reopen the door to non-bank SIFI designations; it has to actually designate and regulate major non-banks — perhaps most prominently, BlackRocknently, BlackRock — as the threats they are to financial stability.”
“Trump’s changes to FSOC were a stunning case of corrupt ideologues denying what’s right in front of them. It’s a simple fact that non-bank companies — asset managers, hedge funds, and the like — are some of the largest and most interconnected firms in the financial economy today. Any private firm with that level of power over the economy needs meaningful checks, but since most of our regulatory system is set up to oversee banks, these firms have skated by on what is, for these purposes, mostly a legal technicality.”
“Beginning to undo Trump’s absurd FSOC framework is a significant act. All of the FSOC member agencies should be proud. But once the framework is finalized — assuming the financial lobby doesn’t eviscerate it in the process — FSOC needs to actually use it. Indeed, failure to act with their new framework simply sets up conservatives and their Wall Street backers to roll it back when a non-bank firm does, inevitably, cause a systemic event. ‘This framework didn’t save us, so obviously it should be eliminated,’ will be their argument. That’s fallacious, but fallacies are the Wall Street lobby’s bread and butter.”
“In other words, if FSOC is going to actually protect our financial system, it needs to solidify that designating non-banks as systemically important is an unquestionably legitimate act, no matter how much the private sector howls. FSOC needs to prove that its legal authorities will not be questioned. The way it does so is by using all of the tools at its disposal.”
The Revolving Door Project (RDP) scrutinizes executive branch appointees to ensure they use their office to serve the broad public interest, rather than to entrench corporate power or seek personal advancement.
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Fossil Fuel Companies Use Enclosures to Hide Planet-Heating Methane Flaring
"If you enclose the flare, people don't see it, so they don't complain about it," said one expert. "But it also means it's not visible from space by most of the methods used to track flare volume."
May 02, 2024
Fossil fuel companies are using a technology known as enclosed flaring to conceal dangerous methane emitted during the production of fossil gas, a report published Thursday revealed.
The Guardian's Tom Brown and Christina Last reported that fossil fuel producers in countries including the United States, United Kingdom, Germany, and Norway "appear to have installed technology that could stop researchers from identifying methane, carbon dioxide emissions, and pollutants at industrial facilities involved in the disposal of unprofitable natural gas."
As the World Bank, European Union, and others have been using satellites to track flaring—the burning of unwanted fossil gas—in an effort to reduce the harmful practice, fossil fuel producers have been adopting enclosed combustion technology to eliminate unwanted methane.
While the industry promotes enclosed combustors as a clean, safe, and efficient solution for eliminating unwanted emissions and ensuring regulatory compliance, critics claim they're a way for gas producers to conceal flaring—which releases five times more methane than previously believed, as Common Dreamsreported in 2022.
"Enclosed combustors are basically a flare with an internal flare tip that you don't see."
"Enclosed combustors are basically a flare with an internal flare tip that you don't see," Tim Doty, a former regulator at the Texas Commission on Environmental Quality, told The Guardian. "Enclosed flaring is still flaring. It's just different infrastructure that they're allowing."
"Enclosed flaring is, in truth, probably less efficient than a typical flare," Doty added. "It's better than venting, but going from a flare to an enclosed flare... is not an improvement in reducing emissions."
Eric Kort, an associate professor at the University of Michigan, told The Guardianthat "if you enclose the flare, people don't see it, so they don't complain about it."
"But it also means it's not visible from space by most of the methods used to track flare volumes," he added.
According to a March 2023 report published by the World Bank and Global Gas Flaring Reduction Partnership, an estimated 140 billion cubic meters of gas was flared globally in 2022, a 3% decrease from the previous year. The top 10 countries by flare volume that year were Russia, Iraq, Iran, Algeria, Venezuela, the United States, Mexico, Libya, Nigeria, and China.
Flaring releases carbon dioxide and toxic pollutants including carcinogenic chemicals. Despite these dangers, energy and environmental regulators allow the venting of fossil gas, which is up to 90% methane, into the atmosphere.
Methane—which has more than 80 times the warming power of carbon dioxide during its first two decades in the atmosphere—is emitted during the production and transportation of oil, gas, and coal, as well as from municipal landfills and livestock.
The International Energy Agency (IEA) published a report last October warning that immediate cuts to methane gas pollution caused by fossil fuel production are critical for limiting planetary heating to 1.5°C, the more ambitious objective of the Paris agreement.
The need is urgent. According to the U.S. National Oceanic and Atmospheric Administration, the three most critical heat-trapping gases in Earth's atmosphere—carbon dioxide, methane, and nitrous oxide—once again reached record levels last year, with methane increasing by 10 parts per billion to 1,922.6 ppb.
Responding to The Guardian's reporting, U.K. Green parliamentary candidate Catherine Read said that "oil and gas companies are hiding their 'flaring' operations because laws are being brought in to reduce emissions of [greenhouse gases] from waste gas that can't be sold at a profit."
"They don't care about us, our children, or nature," she added, "only profit above all else."
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'An Affront to the World': Shell Posts Billions in Profits as Planet Burns
"The grotesque wealth that this Earth-wrecking company continues to accumulate is something we cannot allow ourselves to accept as normal," one campaigner said.
May 02, 2024
Oil major Shell announced $7.7 billion in profits during the first quarter of 2024 on Thursday, as well as a $3.5 billion share buyback program.
The news comes as every month covered by the period was the hottest of its kind on record. The three-month period also saw the second-largest wildfire in Texas history, extreme heat in West Africa and the Sahel, and the beginning of the Great Barrier Reef's fifth mass bleaching event in eight years. Scientists have clearly linked global heating, and the weather disasters it exacerbates, to the climate crisis driven primarily by the burning of fossil fuels.
"As extreme weather accelerates and the cost-of-living crisis rumbles on, Shell's latest billion-pound profits are an affront to the world," Izzie McIntosh, climate campaign manager at Global Justice Now, said in a statement. "The grotesque wealth that this Earth-wrecking company continues to accumulate is something we cannot allow ourselves to accept as normal."
"This is the sad irony of the global energy system in which those causing chaos are the ones getting rich."
Shell's profits for the first three months of 2024 were around 20% lower than for the same time in 2023, CNBC reported. However, the company brought in $1.2 billion more than analysts had predicted. The world's largest oil firms, including Shell, saw record profits in 2022 following Russia's invasion of Ukraine and the energy crisis that followed.
"Shell has beaten expectations by a reasonable margin, despite the impact of lower gas prices during the first quarter," Stuart Lamont, an investment manager at RBC Brewin Dolphin, said in a statement shared by CNBC.
Global Witness pointed out that Shell's earnings to date amounted to over $58,000 a minute, more than the average U.K. nurse makes in a year.
"Shell continuing to rake in huge sums of money shows us that huge polluter profits were not a one-off but are the twisted reality of an energy system that benefits climate-wrecking companies to the cost of everyone else," Global Witness fossil fuel campaigner Alexander Kirk said in a statement.
Shell announced its profits one day after the U.S. Senate held a hearing on how large oil and gas companies, including Shell, have continued to deceive the public about the dangers of their products, moving from outright climate denial into making commitments they don't intend to keep or touting false solutions like carbon capture and storage that they then fail to develop. Shell, according to the testimony of Rep. Jamie Raskin (D-Md.), spent only 11% of its capital on low-carbon technologies between 2009 and 2023.
The hearing sparked calls for accountability from the fossil fuel industry—such as mechanisms to make climate polluters pay for the transition to renewable energy—and the news of Shell's profits generated more.
In the U.K., Labor Shadow Energy and Climate Minister Ed Miliband proposed increasing the tax on energy company profits. Shell paid the U.K. government around $1.4 billion in taxes in 2023, of which around $300 million went to the Energy Profits Levy, according toThe Guardian. Also last year, it paid its shareholders $23 billion, nine times more than it invested in its "Renewables and Energy Solutions" program.
"These results show yet again why it is so damning [that Prime Minister] Rishi Sunak refuses to bring in a proper windfall tax on the oil and gas giants," Miliband said. "These are companies that have made record profits at the expense of working people. Labor says tax these companies fairly so we can invest in clean homegrown energy that will end the cost of living crisis and make Britain energy independent."
Greenpeace U.K. called Shell's latest profits "shameless."
"Their reckless hunt for profits needs to end," the environmental advocacy group wrote on social media. "When will world leaders find their backbone and make polluters pay?"
When one commenter suggested governments held back out of desire to keep collecting Big Oil's taxes, Greenpeace fired back, "What taxes?" and noted that Shell avoided paying U.K. taxes for years.
"At the end of the day we want clean, cheap renewable energy not to face the worst impacts of climate change," Greenpeace continued. "Solutions exist, we just need the political and industrial will to get them in place."
Global Witness and Global Justice Now also took the opportunity to call for an energy transition.
"This is the sad irony of the global energy system in which those causing chaos are the ones getting rich," Kirk said. "This spiral won't stop until we make the urgent switch to a fairer renewable energy system that puts both people and planet first."
McIntosh concluded: "We urgently need to bring a fair and organised end to the fossil fuel era, and that means companies like Shell must stop trying to extract new oil and gas, and start paying what they owe for the loss and damage they've caused. Profit announcements like this for a corporate dinosaur like Shell need to become a thing of the past."
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'Stop Sending Arms': Global Day of Action to End Israel's Assault on Gaza
"The Global Day of Action must serve as a wake-up call to states that continue to supply arms to all parties to the conflict in Gaza that they are at risk of being complicit in war crimes," said one campaigner.
May 02, 2024
The straightforward demand consistently made by human rights experts, a top European Union official, and college students across the U.S. and in a growing number of countries formed the basis for a Global Day of Action on Thursday, with 250 groups organizing direct actions to call on governments around the world to "Stop Sending Arms" to Israel.
Groups including Amnesty International, the Norwegian Refugee Council, and the Center for Jewish Nonviolence helped organize actions in at least 12 countries, "with a strategic emphasis on countries with significant arms exports" and an "aim to resonate globally."
Protest events including rallies, "die-ins," and the projection of messages and images on government buildings were organized in countries including the United States—the top supplier of arms to the Israel Defense Forces (IDF)—Canada, Germany, Australia, South Korea, and Slovakia.
"The Global Day of Action must serve as a wake-up call to states that continue to supply arms to all parties to the conflict in Gaza that they are at risk of being complicit in war crimes and other violations of international law," said Erika Guevara Rosas, senior director for research, advocacy, policy, and campaigns at Amnesty International.
The groups and their supporters amplified the global campaign on social media using the hashtags #StopSendingArms and #CeasefireNOW.
The day of action comes a day after dozens of universities in the United Kingdom were warned by a legal group that they could be criminally liable for investing in weapons manufacturers that provide arms to Israel, and days after Amnesty International filed a report with the U.S. government detailing specific attacks on Palestinian civilians by the IDF in which Israel used weapons provided by the United States.
Dozens of U.S. and international lawyers, including some from President Joe Biden's own administration, have warned the White House that Israel's actions in Gaza—which have killed at least 34,596 Palestinians since October, the majority of whom have been women and children—violate international law.
The Friends Committee on National Legislation (FCNL) in the U.S. noted that calls for divestment from Israel have spread across U.S. college campuses in recent weeks, despite violent crackdowns by police forces.
"While students have been calling on their universities to divest from Israel, FCNL is urging our government to stop military aid," said the group. "It's clear there's a growing demand to end U.S. complicity in the war in Gaza."
Organizers in Australia displayed signs reading, "Every F-35 [fighter jet] contains some Australian parts and components."
"Around the world, people are demanding their governments end complicity in [Israeli Prime Minister Benjamin] Netanyahu's war," said Heather McPherson, a member of the Canadian Parliament representing the New Democratic Party. "In Canada, the NDP calls on Prime Minister Justin Trudeau and Foreign Affairs Minister Mélanie Joly to impose a two-way arms embargo. End the suffering!"
Organizers called on arms experts, journalists, academics, and legal professionals to join the Global Day of Action and call for a "comprehensive arms embargo" on Israel "to stop the transfer of weapons, parts, and ammunitions being used to fuel violations of international law in the occupied Gaza Strip."
Guevara Rosas said that "following the conclusion by the International Court of Justice that there is a plausible risk of genocide in Gaza and in light of the obligation under international law of all states to prevent genocide, governments that continue to supply arms to Israel may find themselves in breach of the Genocide Convention."
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