Airlines downplayed science on climate impact to block new regulations

Original article by Ben Webster and Lucas Amin republished from openDemocracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Campaigners say the lobbying tactics used to argue against tougher measures on emissions echo those of the 20th century tobacco industry

Image of a dirty passenger aircraft

Airlines have been accused of using a “typical climate denialist” strategy after downplaying decades of scientific research on aviation emissions to block tougher regulations.

Campaigners said the lobbying tactics echoed those of the 20th century tobacco industry, which fought stricter measures by magnifying minor doubts on the health risks of smoking.

Documents obtained by openDemocracy show airlines and airports privately told the government there was too much uncertainty about the additional warming effects of flights to justify introducing new policies to tackle them.

But senior climate scientists contradicted the industry’s claims, saying the science is well established on what are known as aviation’s “non-CO2 effects”.

These are caused by emissions at high altitude of water, nitrous oxides, sulphur dioxide and particulate matter, with aircraft vapour trails, also known as contrails, a particular problem because they form clouds at high altitude that trap heat radiated from the Earth.

The Intergovernmental Panel on Climate Change estimated in a special report in 1999 that the total historic impact of aviation on the climate was two to four times greater than from its CO2 emissions alone.

Research in 2021 largely confirmed those findings and concluded aviation emissions were warming the climate at “approximately three times the rate of that associated with aviation CO2 emissions alone”. An EU study from 2020 also found non-CO2 emissions warm the planet about twice as much as CO2 emissions, but acknowledged there were “significant uncertainties”.

The Department for Transport considered regulating these non-CO2 impacts and asked for views on the issue in a consultation in 2021 on its proposed “Jet Zero strategy”.

Responses from airlines and airports, obtained under FOI by openDemocracy, reveal several used the same tactic of arguing the science was too uncertain to justify policies to address non-CO2 effects. Several recommended instead that the government should limit its action on the issue to funding further research into it.

‘A bit of a joke’

Airlines UK, a trade body that lobbies for airlines including British Airways (BA), easyJet and Virgin Atlantic, told the DfT that “the science around these [non-CO2 impacts] is not yet robust enough to form reduction targets”.

When asked during the Jet Zero consultation what could be done to tackle non-CO2 impacts, Ryanair said it was “too early to say until impact is better understood”.

Low-cost airline Wizz Air told the DfT: “There is too high a level of uncertainty of non-CO2 emission contribution to climate change for a policy to be formed.”

Airlines UK, Ryanair and Wizz – alongside others across the industry – called on the DfT to instead fund further research into the science of non-CO2 impacts.

The tactic appears to have worked, with the DfT announcing in the Jet Zero strategy last year that more work would be done with scientists and the industry to understand the issue.

The DfT did, however, say the government was “exploring whether and how non-CO2 impacts could be included in the scope of the UK ETS (emissions trading scheme)”.

Professor Piers Forster, an atmospheric physicist and member of the independent Climate Change Committee, told openDemocracy it was “completely wrong” for the aviation industry to claim the science on aviation’s non-CO2 effects was too uncertain to address them.

He said: “It’s a bit of a joke to say the effects are too uncertain to do anything about. We see their contrails and we’ve known for over 20 years that they are warming the planet. The industry should not hide behind uncertainty.”

He added that “the non-CO2 effects absolutely have to be accounted for in some way and action should be taken to reduce them”.

Milan Klöwer, a climate physicist at Massachusetts Institute of Technology, said airlines were adopting a “typical climate denialist strategy” by overstating the level of uncertainty about non-CO2 effects.

“Even in the best case they roughly double the effect of CO2 emissions on the climate,” he said.

He called on airlines to start accounting for their non CO2 effects and invest more in solutions, such as alternative fuels, which reduced those effects.

Rob Bryher, aviation campaigner at climate charity Possible, said: “These documents show that airlines cannot be trusted to decarbonise on their own. Demand management solutions like a frequent flyer levy, introducing fuel duty, carbon pricing, or management of airport capacity are going to be crucial.”

Matt Finch, UK policy manager of campaign group Transport & Environment, said: “Aviation’s non-CO2 impacts are somewhere between huge and absolutely massive. But the industry doesn’t want you to know that. Instead of confronting its environmental problems head-on, the industry copies the tobacco industry of the ’50s and the oil industry of the ’70s in casting doubt and disbelief around the science.”

BA said it was working with academics and experts on non-CO2 impacts of flying while Sustainable Aviation, an industry group that includes airlines, said it was committing to addressing them but reiterated more research was needed. Wizz Air said it was already addressing the impacts through a range of measures.

Some airlines ignore non-CO2 effects in schemes they support to help passengers calculate and offset the emissions of their flights.

BA’s emissions calculator states a one way flight from London Heathrow to New York emits 348kg CO2E (carbon dioxide equivalent) and charges £3.97 for offsetting.

Atmosfair, a German non-profit organisation which supports the decarbonisation of flying, calculates the same journey on a Boeing 777-200 – an aircraft type used by BA – emits 896kg and charges 21 euros (£18.37) for offsetting. Atmosfair’s emissions total comprises 308kg of CO2 emissions and 587 kg equivalent for “climate impact of contrails, ozone formation etc”.

While the DfT has so far failed to act on non-CO2 effects, they are mentioned in official advice to companies from the Department for Business Energy and Industrial Strategy on how to report their emissions.

It says: “Organisations should include the indirect effects of non-CO2 emissions when reporting air travel emissions to capture the full climate impact of their travel.”

A DfT spokesperson said: “Our Jet Zero Strategy confirmed our aim of addressing the non-CO2 impacts of aviation, by developing our understanding of their impact and possible solutions, and the UK is one of the leading countries working to address this issue.”

Sustainable Aviation Fuel

International Airlines Group (IAG), which owns BA, Vueling and Aer Lingus, told DfT’s Jet Zero consultation it could address non-CO2 emissions by supporting “sustainable aviation fuel” (SAF).

SAF is a jet fuel made from sources which the industry claims are sustainable, including cooking oil and animal fat. It performs in a similar way to kerosene but can produce up to 80% less CO2 depending on how it is made. It potentially also reduces contrails.

IAG told the Jet Zero consultation SAF was “the only viable solution for decarbonising medium and long haul flights”, which account for about 70% of global aviation emissions.

But further documents obtained by openDemocracy reveal IAG then lobbied the DfT to water down its SAF mandate.

In response to a separate consultation, IAG argued the SAF mandate should only cover flights within the UK or to the EU, and not the long haul flights on which British Airways makes most of its profits.

IAG also lobbied against a proposal to ban airlines from dodging the mandate by filling their tanks with cheap kerosene at overseas airports – a practice known as “tankering”.

A BBC Panorama investigation in 2019 revealed tankering by BA and other airlines was creating small financial savings but unnecessary carbon emissions.

IAG also argued against a proposal aimed at building demand for “power-to-liquid” jet fuel, which is produced by combining hydrogen made by renewable energy with carbon captured from the atmosphere.

Unlike other so-called sustainable jet fuels, power-to-liquid fuel does not involve a feedstock needed by other industries to decarbonise, such as used cooking oil or animal fat.

IAG called it “a very expensive pathway to directly decarbonise aviation”.

Sustainable Aviation, an industry group that includes airlines, said: “We are committed to addressing [non-CO2] impacts based on the scientific evidence, but further research is key to developing effective mitigation solutions, for example the use of sustainable aviation fuels (which contain lower contrail forming particulates), alongside steps such as optimising flight routes to avoid contrail formation.”

BA, IAG’s principal airline, said: “We are actively engaging with academics, experts within the industry and the government’s Jet Zero Council to take proactive steps to look into non-CO2 impact.”

Wizz Air said it was mitigating non-CO2 effects “through route optimisation and jet fuel improvements” and by using Airbus A321neo aircraft which reduced NOx emissions by 50%.

Ryanair did not respond to a request for comment.

Original article by Ben Webster and Lucas Amin republished from openDemocracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Continue ReadingAirlines downplayed science on climate impact to block new regulations

UK government lets airlines off the hook for £300m air pollution bill

Original article by Lucas Amin and Ben Webster at openDemocracy republished under a Creative Commons Attribution-NonCommercial 4.0 International licence.

The government wrote off emissions equivalent to 400,000 passengers flying from London to Sydney and back in one year

Photo by Pixabay from Pexels: https://www.pexels.com/photo/air-air-travel-airbus-aircraft-358319/

The government gave more than £300m worth of free ‘pollution permits’ to airline companies including British Airways, RyanAir and EasyJet under a scheme designed to tackle climate change.

The UK’s Emissions Trading Scheme is meant to reduce carbon emissions by forcing big polluters to buy a permit for each tonne of carbon they emit, with the money going into the public purse.

But data obtained by openDemocracy reveals the UK’s aviation sector was handed more than four million “pollution permits” last year, free of charge.

The 4.1 million tonnes of CO2 they represent are equivalent to the emissions of more than 400,000 passengers flying economy-class from London to Sydney and back. The free permits saved airlines the equivalent of £336m based on the annual average carbon price – 39% more than the previous year, 2021.

EasyJet, RyanAir and British Airways were the big winners of the handouts, bagging permits worth £84m, £73m and £58m respectively. The companies all made heavy losses during the pandemic but have since become profitable again: British Airways owner International Airlines Group (IAG) announced profits of £1.3bn last month, while RyanAir just enjoyed its “most profitable December quarter on record” and easyJet is reporting “record-breaking sales”.

openDemocracy has previously revealed how oil and gas companies including Shell and BP were similarly handed more than £1bn worth of free pollution permits during 2022.

Caroline Lucas, the Green MP for Brighton Pavilion, told openDemocracy the government was “letting aviation companies get away with it” and “forcing the public to pick up the tab”.

“Ministers must bring an end to these free pollution permits immediately, and make high-carbon companies pay for the climate-wrecking damage they’re causing,” she added.

The Department for Net Zero and Energy Security is now analysing the results of a consultation on phasing out free permits for the aviation sector – but policy changes will not take effect until at least 2026.

The government has already allocated 12.2 million free permits for the next three years, which at last year’s carbon price will be worth a further £965m.

A government spokesperson told openDemocracy the UK was giving away free permits because it was “committed to tackling climate change” but also to “protecting our industry from carbon leakage”.

But the risk of carbon leakage – when companies relocate to countries that do not have carbon pricing – is “minimal”, according to research commissioned by the government itself.

The study by Frontier Economics on behalf of the Department for Business, Energy and Industrial Strategy (BEIS) also found that ending permit giveaways would lead to a decrease in airline profits and improve market competition.

Daniele de Rao, an aviation expert at Carbon Market Watch, told openDemocracy: “Despite several studies showing that the risk of carbon leakage in the aviation sector is insignificant, airlines are still receiving an enormous amount of free allocation.

“The United Kingdom should apply the ‘polluters pay’ principle in its own ETS and, following the European Union’s example, should end the handout of free pollution permits to airlines as soon as possible.”

Matt Finch, UK policy manager of campaign group Transport & Environment, added: “The nation is up in arms about sewage pollution, but at the same time our government is paying airlines millions of pounds a year to pollute. Are these the actions of a climate leader? No. Free allowances should be phased out of the ETS as quickly as possible.”

The remaining £120m in free permits was carved up among the rest of the UK airline industry – with even the owners of private jets getting handouts.

Ineos Aviation, the company owned by oil and gas billionaire Jim Ratcliffe, was given free permits worth around £2,000.

The government has claimed that “our UK ETS is more ambitious than the EU system it replaces”.

But the EU has voted to phase out free permit allocations from 2026. It also redistributes the revenues raised by permit sales to environmental projects – whereas in the UK the proceeds are retained by the Treasury.

A government spokesperson told openDemocracy: “The UK is committed to tackling climate change while protecting our industry from carbon leakage. That is why a proportion of allowances are allocated for free to businesses under the UK Emissions Trading Scheme.”

They claimed handing free permits to airline giants would “support industry in the transition to net zero in the context of high global energy prices while incentivising long term decarbonisation”.

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Original article by Lucas Amin and Ben Webster at openDemocracy republished under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Continue ReadingUK government lets airlines off the hook for £300m air pollution bill

Rishi Sunak cut air taxes and blocked climate levy after airline lobbying

Original article by Lucas Amin and Ben Webster republished from openDemocracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Rishi Sunak halved has aviation tax on domestic flights 
| Liam McBurney/alenaohneva / Getty / Pexels. Composite by openDemocracy

Rishi Sunak slashed aviation tax on domestic flights and rejected a new ‘frequent flyer levy’ after lobbying by the airline industry, openDemocracy can reveal.

The decision to halve air passenger duty (APD), which takes effect next month, will mean more flights and less rail journeys in Britain – undermining the government’s net-zero commitment.

Clean transport campaigner Matt Finch, the director of Transport and Environment, told openDemocracy: “Simply taxing airlines in the same way that all other UK companies are taxed would bring in precious funds to the Treasury, and stop the ridiculous favouritism shown to airlines.”

He added: “It’s clear that the aviation sector gets preferential treatment from the government, but it’s unclear exactly why.”

In June 2021, when Sunak was chancellor, Ryanair’s director of route development told the Treasury that APD “should be abolished in order to stimulate immediate traffic growth”, documents obtained by openDemocracy under Freedom of Information law reveal.

Ryanair said it could offer “ultra-low” domestic fares if the tax was reduced. It has responded to Sunak’s cut by sharply increasing flights from London, adding three a day between the capital and Edinburgh and three a week to Newquay, Cornwall.

Responding to the Treasury’s June 2021 consultation on the plans, British Airways’ owner, International Airlines Group (IAG), and easyJet also said they supported APD tax cuts. IAG said “positive outcomes could include new routes, increased frequency and larger aircraft on existing routes as well as lower fares”.

EasyJet said: “Our analysis shows that if domestic APD is reduced by 50%, this would

support an overall 31% increase in domestic volume to 10.6 million passengers.”

But the UK’s rail industry warned that cutting air taxes would lead to 222,000 passengers shifting from rail to air each year, equivalent to an extra 1,000 domestic flights. The Rail Delivery Group said that reducing the cost of flying “runs counter to government’s legal commitment to decarbonise” and could increase carbon emissions by 27,000 tonnes a year.

Sunak ignored the warning and in October 2021 announced a 50% cut to APD on domestic flights, from £13 to £6.50.

It’s clear that the aviation sector gets preferential treatment from the government, but it’s unclear exactly why

Matt Finch, Transport and Environment

Silviya Barrett, the director of Policy and Research at Campaign for Better Transport, said: “In the context of the climate emergency, it’s hard to think of a more wrong-headed policy than making domestic flights cheaper. Not only will it encourage more polluting travel, but it will reduce revenue which could and should be invested in sustainable alternatives.”

France is taking the opposite approach by banning domestic flights between cities that are linked by a train journey of less than 2.5 hours.

The railway industry’s ability to compete with cheap flights was further undermined last week when the government increased rail fares by up to 5.9%, the biggest rise for 11 years.

The airline industry already benefits from the absence of tax on jet fuel and no VAT on airline tickets. A study last year estimated that taxing jet fuel in the UK at the same rate as road fuel would have raised £6.7bn in 2019. The sector generates around 8% of UK emissions.

Sunak, who now travels around Britain in a private jet, also rejected a recommendation to introduce a progressive tax on frequent flyers.

The Climate Change Committee has found that a “frequent flyer levy” –which makes those who fly more often pay progressively more tax – is a fairer way of taxing aviation.

Research shows that just 15% of Brits take 70% of flights.

It’s hard to think of a more wrong-headed policy than making domestic flights cheaper

Silviya Barrett, Campaign for Better Transport

Nine in ten people back the idea of a frequent flyer levy, according to a survey by conservation charity WWF and think tank Demos, but Ryanair told the Treasury not to do it.

Ryanair argued that a frequent flyer levy would be “likely only to punish passengers that have an ongoing practical requirement to fly frequently”, while IAG told the Treasury that “taxing aviation does not benefit the environment”.

Grahame Morris, a Labour member of the House of Commons Transport Select Committee, told openDemocracy: “It is counterintuitive of this government to remain committed to ‘Jet Zero’ by 2050 and at the same time to reject a frequent flyer levy while alternative sustainable aviation fuels to replace existing fossil fuels are still under development and evaluation.”

A government spokesperson said: “We are absolutely committed to levelling up the UK and delivering on our net-zero commitments, which is why from April we are cutting duty in half for flights within the UK, except for private jets, and introducing new higher rates of duty for ultra-long haul flights, ensuring that those who fly furthest contribute the most.

“In line with the tax policy-making process, we consulted on a frequent flyer levy in 2021, which a wide range of stakeholders fed into. Having considered views, including around privacy and data concerns of implementing such a levy, we concluded that Air Passenger Duty should remain the principal tax on the aviation sector.”

Original article by Lucas Amin and Ben Webster republished from openDemocracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Continue ReadingRishi Sunak cut air taxes and blocked climate levy after airline lobbying

Greenpeace ends oil rig occupation as Shell launches legal action to sue group

Greenpeace activists in inflatable boats approaching Shell platform Image: Alice Russell / Greenpeace

https://morningstaronline.co.uk/article/b/greenpeace-ends-oil-rig-occupation-as-shell-launches-legal-action-to-sue-group

ENVIRONMENT activists ended their occupation of a 34,000-tonne oil rig today as it arrived in Norway.

But multibillion-pound energy corporation Shell is suing campaign group Greenpeace for more than £100,000 in compensation for costs incurred by the operation, including extra security.

Six activists began their occupation north of the Canary Islands as it was being towed to Haugesund in south-west Norway.

The occupiers boarded the rig from sea-going dinghies in a daring raid on January 31.

In a final stand at 10.30am at Haugesund today, the occupiers climbed the platform’s 125-metre flare boom and waved a banner saying “Stop drilling. Start paying.”

https://morningstaronline.co.uk/article/b/greenpeace-ends-oil-rig-occupation-as-shell-launches-legal-action-to-sue-group

Continue ReadingGreenpeace ends oil rig occupation as Shell launches legal action to sue group

Climate-focused investors irked by BP’s pivot back to oil

Just Stop Oil protests at BP
Just Stop Oil protests at BP

https://www.reuters.com/business/sustainable-business/change-bp-climate-goal-concern-emissions-focused-investors-shareholder-2023-02-10/

LONDON, Feb 10 (Reuters) – Some climate-focused investors in BP (BP.L) voiced concern this week about the company’s announcement that it has scaled back climate targets and now plans to produce more oil and gas for longer, yet the company’s share price continued to surge on Friday.

Chief Executive Bernard Looney’s strategy revision on Tuesday included a cut to BP’s 2030 emissions reduction target. Three years ago, he took the helm with a vow to re-invent the oil and gas company.

Bruce Duguid, head of stewardship at Federated Hermes, which co-leads negotiations with BP over its energy transition on behalf of a large group of institutional investors called Climate Action 100+, voiced concern over Looney’s pivot.

“In the context of a very strong financial outcome, those investors with net-zero goals, including many of our clients, will be concerned at such a material change to BP’s 2030 absolute emissions reduction target,” Duguid said in a statement to Reuters.

https://www.reuters.com/business/sustainable-business/change-bp-climate-goal-concern-emissions-focused-investors-shareholder-2023-02-10/

Continue ReadingClimate-focused investors irked by BP’s pivot back to oil

Huge oil and gas profits should be returned to climate change victims, campaigners urge

https://morningstaronline.co.uk/article/b/huge-oil-and-gas-profits-should-be-returned-climate-change-victims

Demonstrators participate in a Fridays for Future protest calling for money for climate action at the COP27 U.N. Climate Summit, Friday, Nov. 11, 2022, in Sharm el-Sheikh, Egypt.

HUGE profits declared by oil and gas firms should be channelled towards compensating for the loss and damages suffered by victims of climate change, campaign group Greenpeace has urged.

Following Shell’s announcement last week of its record high profits of £32.2 billion last year, BP is expected to announce record profits of its own tomorrow.

The firm has already announced more than £20bn profit for the first three quarters of last year.

Collectively, energy giants Shell, BP, Chevron, Exxon, and Total are believed to have pocketed almost £166bn in profits last year, said Greenpeace.

https://morningstaronline.co.uk/article/b/huge-oil-and-gas-profits-should-be-returned-climate-change-victims

Continue ReadingHuge oil and gas profits should be returned to climate change victims, campaigners urge

‘The Writing Is on the Wall for Fossil Fuels’: Activist Investors Sue Shell Board Over Climate Failures

Just Stop Oil protesting in London 6 December 2022.
Just Stop Oil protesting in London 6 December 2022.

\Original article by JAKE JOHNSON Feb 09, 2023 republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

“The shift to a low-carbon economy is not just inevitable, it’s already happening. Yet the board is persisting with a transition strategy that is fundamentally flawed.”

A group of activist investors sued Shell’s board of directors on Wednesday for failing to “deliver the reduction in emissions that is needed to keep global climate goals within reach.”

ClientEarth, an environmental law charity and institutional investor in Shell, described the case as the first time a company board is facing a shareholder lawsuit for inadequately preparing to transition away from fossil fuels.

“Shell may be making record profits now due to the turmoil of the global energy market, but the writing is on the wall for fossil fuels long term,” Paul Benson, a senior lawyer at ClientEarth, said in a statement. “The shift to a low-carbon economy is not just inevitable, it’s already happening. Yet the board is persisting with a transition strategy that is fundamentally flawed, leaving the company seriously exposed to the risks that climate change poses to Shell’s future success—despite the board’s legal duty to manage those risks.”

The lawsuit, which is backed by large institutional investors that collectively hold 12 million shares of Shell, alleges that the oil giant’s 11 directors are violating the Companies Act, a U.K. law that requires corporate boards to “promote the success” of the business.

By failing to sufficiently manage climate risks and implement “an energy transition strategy that aligns with the Paris Agreement,” Shell is flouting its legal obligations, the lawsuit contends.

“Shell’s Board on the other hand maintains that its ‘Energy Transition Strategy’—including its plan to be a net-zero emissions business by 2050—is consistent with the 1.5°C temperature goal of the Paris Agreement,” ClientEarth notes. “It also claims that its plan to halve emissions from its global operations by 2030 is ‘industry-leading,’ however this covers less than 10% of its overall emissions.”

“It is in the best interests of the company, its employees, and its shareholders—as well as the planet—for Shell to reduce its emissions harder and faster than the board is currently planning.”

ClientEarth and its backers are asking the High Court of Justice in London to force Shell’s board to “adopt a strategy to manage climate risk in line with its duties under the Companies Act” and in compliance with a 2021 Dutch court ruling ordering the oil giant to cut its total carbon emissions by 45% by 2030.

“Long term, it is in the best interests of the company, its employees, and its shareholders—as well as the planet—for Shell to reduce its emissions harder and faster than the board is currently planning,” Benson said.

Jacqueline Amy Jackson, the head of responsible investment at London CIV—one of the institutional backers of ClientEarth’s lawsuit—said that “we do not believe the board has adopted a reasonable or effective strategy to manage the risks associated with climate change affecting Shell.”

“In our view,” Jackson added, “a board of directors of a high-emitting company has a fiduciary duty to manage climate risk, and in so doing, consider the impacts of its decisions on climate change, and to reduce its contribution to it.”

Shell said in response that ClientEarth’s suit “has no merit.”

ClientEarth filed its complaint a week after Shell announced that its profits doubled in 2022, surging to a record $40 billion as households across Europe and around the world struggled with high energy costs. The company said it returned $26 billion to shareholders last year through dividends and stock buybacks.

Earlier this month, the advocacy group Global Witness filed a complaint with the U.S. Securities and Exchange Commission accusing Shell of “lumping together some of its gas-related investments with its spending on renewables to inflate its overall investment in renewable sources of energy,” misleading investors and authorities.

“Shell’s so-called renewable and energy solutions category is pure fiction,” said Zorka Milin, a senior adviser at Global Witness. “The company is living in fantasy land if it thinks fossil gas has any place in the much-needed energy transition. Shell’s business model has always been, and continues to be, overwhelmingly based on climate-polluting fossil fuels.”

Shell is also facing lawsuits from nearly 14,000 Nigerians whose communities have been devastated by the company’s pollution and oil spills.

\Original article by JAKE JOHNSON Feb 09, 2023 republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

Continue Reading‘The Writing Is on the Wall for Fossil Fuels’: Activist Investors Sue Shell Board Over Climate Failures

BP scales back climate goals as profits more than double to £23bn

https://www.theguardian.com/business/2023/feb/07/bp-profits-windfall-tax-gas-prices-ukraine-war

Just Stop Oil protests at BP
Just Stop Oil protests at BP

BP has scaled back its climate ambitions as it announced that annual profits more than doubled to $28bn (£23bn) in 2022 after a sharp increase in gas prices linked to the Ukraine war boosted its earnings.

In a move that will anger campaigners, the oil and gas giant cut its emissions pledge and plans a greater production of oil and gas over the next seven years compared with previous targets.

The huge annual profit led to renewed calls for a toughened windfall tax, as oil companies reap rewards from higher gas prices while many households and businesses struggle to cope with a sharp rise in energy bills.

Kate Blagojevic, Greenpeace UK’s head of climate justice, said: “BP is yet another fossil fuel giant mining gold out of the vast suffering caused by the climate and energy crisis.

“What’s worse, their green plans seem to have been strongly undermined by pressure from investors and governments to make even more dirty money out of oil and gas. This is precisely why we need governments to intervene to change the rules.”

https://www.theguardian.com/business/2023/feb/07/bp-profits-windfall-tax-gas-prices-ukraine-war

Continue ReadingBP scales back climate goals as profits more than double to £23bn

How much tax do oil companies usually pay?

Image of loads of money
Image of loads of money

Part of a wider article by BBC discussing the UK’s Windfall tax on big oil and gas companies.

Shell initially said it did not expect to pay any windfall tax for 2022, as its North Sea investments meant was not considered to have made any UK profits.

But on 2 February it announced that it would pay $134m (£108m) for 2022, and expected to pay more than $500m (£400m) for 2023.

BP said it would pay $700m (£583m) in windfall tax for 2022.

BP and Shell both received more money back from the UK government than they paid every year from 2015 to 2020 (except 2017, when Shell paid more than it received).

Shell also paid a negative amount of tax in 2021, taking its 2015 to 2021 total to -£685m of tax in the UK.

BP paid more money in tax than it received back in 2021, taking its total between 2015 and 2021 to -£107m.

Continue ReadingHow much tax do oil companies usually pay?