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Aggressive Big Oil lobbying has secured enormous government giveaways so extensive that the largest US oil and gas companies now pay more in taxes to foreign governments than to the US Treasury.
For more than a century, Big Oil lobbying has tyrannized American climate and tax policy, driving climate catastrophe while deepening economic inequality. Lavish tax breaks and subsidies for fossil fuel companies help explain why corporate giants like Chevron enjoy single-digit tax rates—lower than what many nurses or firefighters pay. After fossil fuel lobbyists flooded COP30 in unprecedented numbers, outnumbering nearly every other country’s delegation and stalling calls for a rapid fossil fuel phaseout, it’s more transparent than ever how the fossil fuel industry maintains its grip on global climate policy.
In the US, aggressive Big Oil lobbying has secured enormous government giveaways so extensive that the largest US oil and gas companies now pay more in taxes to foreign governments than to the US Treasury, finds a recent report by the FACT Coalition.
The report analyzed the financial disclosures of 11 US oil and gas companies with extensive overseas operations and concluded that decades of heavy industry lobbying has engineered a US tax code that pays for a dying fossil fuel industry, specifically for new oil and gas development abroad.
At the report’s launch in DC earlier this fall, Sen. Sheldon Whitehouse (D-RI) explained how US taxpayers are effectively forced to subsidize fossil fuel production through a tax code highly favorable to Big Oil. The report’s researchers explained that under the Global Intangible Low-Taxed Income (GILTI) regime, multinational companies that shift operations offshore already receive a 50% income tax deduction. But Big Oil lobbying has successfully created special exemptions allowing the largest fossil fuel companies to bypass all US tax on foreign oil and gas extraction income.
US taxpayers not only subsidize the fossil-fuel industry by nearly $35 billion every year, they also shoulder more than $100 billion annually in climate-related costs.
As a result, despite producing more oil and gas domestically than in all other countries combined, American multinational oil and gas companies collectively pay more in taxes to foreign governments than to the US. While domestic operations account for more than 57% of total upstream production among the companies studied in the report, they generate less than a quarter of total taxes due.

Before Trump’s 2017 tax law, corporate income earned abroad from refining, transporting, and selling oil was taxed immediately at the full US rate. But Trump’s Big Oil tax breaks shifted this income into GILTI. Although the 2022 Inflation Reduction Act (IRA) tried to curtail government subsidies to fossil fuels, the 2025 “One Big Beautiful Bill” expanded 2017-level tax giveaways, including more direct incentives for foreign drilling. To secure the sweeping benefits contained in the 2025 tax law, the industry’s largest players spent nearly $20 million lobbying Congress in the six months preceding the bill’s passage.
The bill adds $30.8 billion per year in existing subsidies for the fossil fuel industry, restores federal royalty rates to their pre-IRA levels of 12.5-16.7%, and introduces a new carve out allowing oil and gas companies to deduct intangible drilling costs (IDCs)—which represent 60-80% of total well expenses—from income subject to the Corporate Alternative Minimum Tax (CAMT) (a 15% minimum tax on corporations earning more than $1 billion in book profits). The president of the American Petroleum Institute (API), said that Trump’s 2025 tax reform “includes almost all of our priorities.”
Allowing the wishes of Big Oil to take precedent over the well-being of people and the planet is dooming our shared ecosystem. Today, US taxpayers not only subsidize the fossil-fuel industry by nearly $35 billion every year, they also shoulder more than $100 billion annually in climate-related costs. A Brookings study estimates that climate change now costs the average US household $220 to $570 per year.
Our government continues to prop up oil and gas companies over people and the planet, and is fueling climate disaster at home and abroad.
Meanwhile, the companies driving these damages continue to profit. Chevron and ExxonMobil rank among the world’s five highest-emitting corporations, and a 2025 Nature study estimates that each is responsible for nearly $2 trillion in climate damages. The report notes that federal handouts to US fossil fuel companies operating overseas are especially damaging. They erode the US tax base, accelerate the climate crisis, undermine American energy independence, and fail to generate well-paying domestic jobs.
Working-class people are paying for the continued life support of an already dying industry that’s fueling the climate crisis. Erich Pica, president of Friends of the Earth, noted during the report launch that without federal subsidies, 60% of US oil and gas production would be economically unviable. This sentiment has been well known by economic and political advisers across the political spectrum for decades. For instance, the report quotes Kevin Hassett, a current Trump top economic adviser, who said in a 2006 article that, “ending subsidies for fossil fuel production would level the playing field among energy sources and shift us from a policy of promoting fossil fuel supply to encouraging a reduction in fossil fuel consumption.” The entrenched government support incentivizing our current extractive economy starves the renewable energy sector of crucial federal investment necessary to curb polluting emissions. And eliminating these tax breaks would save US taxpayers more than $75 billion over the next decade.
The FACT Coalition recommends several essential reforms to counter traditional pro-oil tax policies. Eliminating domestic fossil fuel tax preferences and subsidies that fund oil and gas production abroad, ensuring that multinational corporations cannot shift production overseas to scapegoat domestic tax rates, and strengthening corporate tax transparency policy to include how much companies pay in taxes country-by-country.
“Tax fairness is climate justice,” Whitehouse concluded his remarks at the report launch.
Corporate and political greed deepens multigenerational economic vulnerability by eroding safety nets like the Supplemental Nutrition Assistance Program and Medicaid, while financially and politically killing the potential of a thriving renewable energy sector that could create stable, well-paying jobs to replace those declining under Big Oil. Our government continues to prop up oil and gas companies over people and the planet, and is fueling climate disaster at home and abroad. We must refuse to let our paychecks fund the industry that is destroying our homes, our lands, and our loved ones.
The companies that made billions selling the fuels that destabilized the climate can afford to help fix the grid that’s collapsing under it.
We talk a lot about the cost of energy, but not enough about what’s actually driving it. Across the country, electricity bills are climbing not because of regulation, as the industry claims, but because of the growing costs of the climate crisis itself. The storms, the fires, the floods, and the heat are battering an electric grid that was mostly built half a century ago, and the costs of repairing it are being quietly folded into our monthly bills.
The other side wants you to believe it’s “climate” that’s driving up prices, and they’re right, just not in the way that they mean. It isn’t climate mandates or clean-energy standards. It’s climate disasters. And the truth is, the fastest way to lower costs isn’t to slow down the energy transition, it’s to speed it up. Clean energy brings cheap, reliable power online faster and protects families from the kind of fuel price spikes that come with oil and gas dependence.
That’s where climate superfund laws come in. New York and Vermont have already passed versions that require the biggest polluters to chip in for climate damage. These laws follow the same principle that governs toxic-waste cleanup. If you made the mess, you help pay to clean it up. States are starting to realize that the funds from a climate superfund could cover part of the cost of hardening the grid, things like replacing wooden poles with steel, elevating substations that flood every few years, building microgrids so hospitals and schools can stay open during blackouts, and funding new and more reliable clean energy projects. These projects would help to ease the pressure on ratepayers while making the systems themselves more resilient.
For years, utilities and regulators treated big storms as one-off emergencies. A few poles went down, they rebuilt them, everyone moved on. But the “one-off” has now become, dare I say, the “new normal.” In Maine, the cost of storm recovery has risen more than 30 fold since 2020. Every time a nor’easter slams through the state, Central Maine Power spends millions to replace equipment and clear lines, and then regulators approve a new rider or adjustment that gets added to customer bills. It’s the same story across the country.
The next time a storm knocks out your power or a bill arrives higher than expected, that’s the climate crisis arriving as a tab in your mailbox.
In California, billions have gone toward wildfire mitigation after blazes sparked by utility equipment destroyed entire towns. To prevent future fires, power companies are burying lines, trimming trees, insulating wires—all necessary, and all very, very expensive. According to state filings, utilities’ wildfire-related costs are contributing to 7-12% bill increases for residential customers. What began as infrequent emergency response spending has become a permanent part of doing business for utility companies across the country.
A new national analysis from the Center for American Progress and the Natural Resources Defense Council shows how big this problem has gotten. Utilities in 49 states and Washington, DC have already raised rates or proposed to raise within the next two years. By 2028, those hikes will add nearly $90 billion to household energy bills. That’s billions with a b. And for many families, that means another $30 or $40 a month on top of everything else they’re already struggling to afford.
The reasons are tangled together. The grid is old and failing faster under stress. The price of natural gas has spiked again, partly because exports of natural gas have linked American prices to volatile global markets. And new power-hungry data centers are popping up so quickly that utilities are scrambling to build the power plants to feed them. But one of the biggest single drivers remains extreme weather. Each storm and heatwave adds another layer of cost to a grid that was never built for this world.
The Government Accountability Office has warned that climate change will stress every part of the energy system and that failing to adapt will cost billions of dollars more in the long run. Yet the way we pay for that adaptation hasn’t changed at all. Utilities rebuild, regulators sign off, and the public pays. Fossil-fuel companies whose emissions are fueling the disasters that make all this necessary contribute all of nothing.
It’s tempting to think of this as just another utility issue, a problem for regulators and accountants and not us. But to me, it’s really a measure of how far the climate crisis has crept into our daily life. The next time a storm knocks out your power or a bill arrives higher than expected, that’s the climate crisis arriving as a tab in your mailbox. We can keep pretending it’s inevitable, or we can start sending the bill to the companies that profited from creating the problem.
Climate superfunds won’t solve everything. But they’d at least start to balance the scales. The companies that made billions selling the fuels that destabilized the climate can afford to help fix the grid that’s collapsing under it.
With the mounting economic and human toll of climate disasters and the benefits of affordable, renewable energy so clear and urgent, there is still space for genuine progress and alignment at COP30—and world leaders must seize it!
Nations will soon be gathering in Belém, Brazil for the annual United Nations climate “conference of the parties”—COP30—against a backdrop of incredibly challenging geopolitical and climate realities. Grossly insufficient action from world leaders has already resulted in worsening climate extreme events and has put the crucial, science-informed goal of limiting global warming to 1.5°C above preindustrial levels out of reach. As I write this, Jamaica, Cuba, the Bahamas, Haiti, and the Dominican Republic are bracing for the monster Hurricane Melissa—the most recent example of the deadly and costly damages from the fossil-fueled climate crisis.
Political headwinds—including the Trump administration’s attacks on climate science and clean energy policies in the United States—and the fossil fuel industry’s continued deception and obstruction are conspiring to make this a very fraught moment for climate action. Yet, with the mounting economic and human toll of climate disasters and the benefits of affordable, renewable energy so clear and urgent, there is still space for genuine progress and alignment at COP30—and world leaders must seize it!
The significance of this COP taking place in Brazil, a COP that should forefront the rights of Indigenous communities and the protection of the Amazon forest, cannot be overstated. Across the world, frontline communities bearing a disproportionate toll of climate impacts need solutions that prioritize their needs—not the profits of big polluters and billionaires seeking to evade their responsibility for driving the climate crisis. Unfortunately, the complicated logistics and high accommodation costs for this COP are already creating concerns about inclusivity, especially for those with fewer resources.
The COP Presidency’s Global Mutirão is a bracing call to action. COP30 President André Corrêa do Lago and CEO Ana Toni have laid out a strong vision for a focus on implementation of actions to address climate change, not just a list of future aspirations. They have been engaged in diplomacy all year, bilaterally and multilaterally, to try to lay the groundwork for consensus at COP30 even in the face of geopolitical tensions.
My colleagues and I will be on the ground in Belém, shining a light on the latest science and what it means for decision-makers, people, and the planet as we fight for climate justice alongside civil society representatives from Brazil and across the world. You can follow along with our blog series on COP30.
UN Secretary General Antonio Guterres’ stark remarks on the 1.5°C climate goal, made at the 75th anniversary of the World Meteorological Organization (WMO) last week, hit hard: “…one thing is already clear: we will not be able to contain the global warming below 1.5°C in the next few years. The overshooting is now inevitable, which means that we are going to have a period, bigger or smaller, with higher or lower intensity, above 1.5°C in the years to come.”
Unfortunately, Secretary General Guterres has simply confirmed what several Intergovernmental Panel on Climate Change scientists, Union of Concerned Scientists scientists, and many others have been sounding the alarm about since the IPCC’s Sixth Assessment Report was released.
Ten years after securing the Paris Agreement, the fact that the world is now on the verge of exceeding 1.5°C of warming on a long-term basis—after already surpassing it temporarily for a full year in 2024—was not inevitable. It is an absolutely enraging, shameful, and heartbreaking consequence of continued delays and obstruction of ambitious action. The fault lies entirely with gutless, self-interested political leaders—especially those from richer, high-emitting nations—and the fossil fuel industry, which has continued to brazenly and shamelessly prioritize its profits over the planet.
No country—not even the United States—can stop global climate action AND it will take a lot of countries acting together to tackle this problem at the scale and with the urgency required.
Breaching 1.5°C will undoubtedly unleash further damaging and irreversible climate harms on the world, but it is not a cliff edge. Climate impacts unfold and accelerate on a continuum, and even now, at about 1.3°C of global warming, we are—and have been—seeing profound harms to people and the planet.
Our response now—because humans still have agency over this dire problem we have caused—will make a crucial difference in the extent of the harms to come and what we can do to prepare for them. How much past 1.5°C temperatures overshoot, and how long that overshoot lasts, will depend crucially on our emissions choices. Those factors will make a tremendous difference for the magnitude of impacts like climate-driven extreme heat in the future. We must also ramp up our investments in resilience to help prepare people for graver threats as temperatures increase.
But some planetary boundaries, once crossed, can set off feedback loops in Earth systems that we will not be able to control. For example, some impacts, like the further irreversible loss of land-based ice, can set off additional multi-century accelerating sea-level rise beyond what is currently locked in, and that cannot be turned back once it gets going even if we manage to bring temperatures back down after overshooting 1.5°C.
The choices our political leaders make now—including at COP30—will determine the future we leave to our children and grandchildren. Those choices include prioritizing actions to:
Despite all the loud alarm bells, most indicators continue to show a world far offtrack. Data from a recent report from the World Meteorological Organization (WMO) show that global carbon dioxide emissions were at an all-time high in 2024, with the biggest increase from 2023 to 2024 since modern measurements began. In addition to emissions from burning fossil fuels, a strikingly anomalous factor in 2024 was the high levels of emissions from wildfires in North and South America, including in Bolivia, Brazil, and Canada. Meanwhile, the Production Gap Report shows that nations’ fossil fuel production plans are on track to be twice as much in 2030 as would be consistent with a 1.5°C pathway. And countries’ current emission reduction commitments (aka Nationally Determined Contributions or NDCs) are collectively well short of Paris Agreement-aligned goals.
The 2025 NDC Synthesis report and the forthcoming 2025 UN Environment Programme Emissions Gap report further underscore these realities and highlight the very real risk that without immediate action the world could be on track for a global average temperature increase of more than 2.5°C, even approaching 3°C above preindustrial levels. A 3°C world would be catastrophic—with unrelenting extreme heatwaves, major coastal cities inundated by rising seas, food and water shortages, loss of coral reefs and die-back of tropical forests, harms to human health and other disastrous impacts. Meanwhile, the forthcoming 2025 Adaptation Gap report, themed "Running on Empty," will highlight the huge shortfall in investments in resilience to help frontline communities cope with climate impacts already locked in due to heat-trapping emissions primarily from richer nations.
Together, these reports form a dismal assessment of political leaders who are still not acting in line with what science or equity shows is necessary, despite years of high-minded promises and even as people are enduring crushing climate impacts.
While the context for COP30 is daunting, and the process of negotiations ahead is likely to be frustrating, global cooperation is absolutely essential to solve this challenge. There are no shortcuts around that. Every country must have a role, a responsibility, and a voice—no matter how big or small, or how powerful or not they are. That said, richer nations and major emitters of heat-trapping emissions have unique responsibilities to act boldly.
Here are seven things I’ll be watching for:
The 10 years since the world secured the historic Paris Agreement have been a time of both incredible progress in renewable energy and worsening climate impacts, illuminating who the real climate champions are and who are the obstacles. COP30’s success depends on whether countries can rise above narrow self-interest and recommit to ambitious action. It depends on whether a shifting world order can unlock progress and leadership from new quarters. It depends on isolating the Trump administration and resisting its anti-science rhetoric and actions, as well as its efforts to upend multilateral diplomacy to solve global challenges.
I am going to Brazil in sober mind frame, deeply worried about the increasingly authoritarian Trump administration. But much as the US is an outsize actor on the global stage, this international climate meeting with 190+ countries is also a reminder of the wider world and each country’s vital place in it. The 1.5°C goal is enshrined in the Paris Agreement because of the bravery of small island nations that carried the refrain of "1.5 to stay alive" at COP21 in 2015. Vanuatu and a group of small island nations led a heroic effort to secure a landmark advisory opinion from the International Court of Justice this year, affirming states’ legal obligations to address climate change. Meanwhile, renewable energy is taking off around the world because it is now the cheapest form of electricity in most places. No country—not even the United States—can stop global climate action AND it will take a lot of countries acting together to tackle this problem at the scale and with the urgency required.
In Belém, I know I will find inspiration and courage from the global climate justice movement, from Indigenous Peoples who have stood firm to defend their lands and communities in the face of brutal attacks, and from passionate young people who are the planet’s future. I know I will come back reenergized for the right and necessary fight here at home