A groundbreaking study conducted by the journal One Earth points out that the world's largest fossil fuel companies owe at least $209 billion in annual climate redress to keep up with the communities most harmed by their polluting businesses. The survey involves groups of the 21 largest companies and up to trillions in problems ranging from melting glaciers to forest fires.
The analysis, titled “Time to Pay the Piper“, was based on the database of the main carbon companies, which records individual oil, gas and coal emissions since 1988 – the year in which the Intergovernmental Panel on Climate Change (IPCC) It has been established. The study makes a moral case for the carbon companies most responsible for climate breakdown to use some of their “tainted wealth” to compensate the victims.
The values estimated by the study are considered conservative, as the methodology excludes the economic value of lost lives and livelihoods, species extinction and other biodiversity losses, as well as other components of well-being not captured in GDP.
Overall, the expected global economic damage from the climate crisis is estimated at $9 trillion between 2025 and 2050. Investments remain at $69.6 trillion, according to more than 700 climate economists. The study attributes a third of these future climate costs to the global fossil fuel industry and a third to governments and consumers.
The global fossil fuel industry will be held responsible for at least US$ 23.2 trillion of expected and climate-related economic losses over the next 25 years. The study reinforces the importance of considering the negative externalities of fossil fuel production and the need to seek more sustainable alternatives for energy generation.
It is worth noting that determining financial responsibility and implementing these climate remedies are complex challenges. The fair distribution of costs between different companies and countries, as well as the gradual transition to a low-carbon economy, are aspects that need to be carefully considered.
Oil companies play a key role in the energy transition. Many companies are already investing in renewable energy sources and looking to reduce their carbon emissions. However, the study emphasizes that a joint effort is needed, involving both companies and governments and society, to face the challenges of climate change effectively.
As awareness of the environmental impacts of oil activities continues to grow, discussions around the financial responsibility of oil companies are expected to gain increasing prominence. Experts emphasize the importance of a global and collaborative approach to addressing the challenges of climate change, seeking sustainable and equitable solutions.
