By Yatish Rajawat & Dev Chandrasekhar
The COP28 climate summit in Dubai, United Arab Emirates, concluded on Wednesday after a tense period of extended negotiations, with the potential breakdown of talks looming due to the wide differences between countries’ positions on the future of oil, gas, and coal. The COP28 statement shows the heft the fossil fuel industry has over this environmental confabulation and the world’s future. Despite being the first COP where the term “fossil fuels” has been explicitly included in the resolution, it has not done much.
Given that Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), was the COP28 president, there were more fossil fuel lobbyists at this conference than ever in the past. Expectedly, a new doublespeak has been unleashed in COP28. Emissions can never be eliminated, but Net Zero can still be achieved. Yet, for anyone who does not hold any conflict of interest, the technical definition of Net Zero is simple, clear, and unambiguous: the elimination of all greenhouse emissions.On December 2, the third day of the meeting, Al Jaber announced the Global Decarbonization Accelerator (GDA)—the umbrella plan for the energy, industry, and transport sectors, which are collectively responsible for the bulk of global greenhouse gas emissions.
The 50 companies that produce over 40% of global oil signed the Oil and Gas Decarbonization Charter (OGDC), which aims to eliminate the release of methane gas by 2030 by eliminating routine flaring and ensuring that all operations are Net Zero by 2050. Twenty-nine national oil companies (NOCs) have also signed on to this pledge.
Now, read between-the-lines: the GDA is voluntary and accounts for a mere 15% of total global emissions; the agreement to eliminate methane emissions and eliminate routine flaring by 2030 does not include the bulk of “fugitive” emissions from coal mines; the Hydrogen Declaration does not specify if it the certification will vouch that the hydrogen is made with renewable energy.
It did not take long for it to be called out. UN secretary-general António Guterres said the emissions reduction plans “clearly fall short of what is required”, that the pledge to reduce methane leaks from pipelines by 2030 is a “step in the right direction”, but also that the issue of eliminating emissions from fossil fuel consumption has not been addressed. Guterres should have noted that the Net Zero promises by these companies is fake, but did not.
How are these fossil fuel companies to become Net Zero when they are the biggest emitters? This is where technicality plays a role. Fossil fuel companies guarantee that their plants will become Net Zero, not their products. This is Net Zero hypocrisy. Production processes are being greenwashed but the end product remains a climate hazard. The silence of the mainstream news media, auditors, and others ensures that these fossil fuel companies can false claims of being “green”. Unfortunately, the language of ‘transitions’ is a loophole designed to allow the fossil fuel industry to continue to invest billions of dollars. Despite lofty Net Zero commitments, the world remains on a trajectory towards irreversible climate catastrophe. Worse, instead of calling out such blatant and brazen greenwashing, COP28 appears to have added to this hypocrisy.
At the heart of this disconnect lies the notion that we can continue to pollute the planet while somehow offsetting our emissions through carbon capture and other mechanisms. While governments and corporations proclaim their dedication to Net Zero, fossil fuels continue to dominate the global energy mix and contribute 75% of the GHG emissions (90% of the CO2).
Net Zero thus is a dangerous mirage that allows those responsible to shirk responsibility for the harm they are causing. True climate action demands a paradigm shift that embraces the “polluter pays” principle at every stage of the fossil fuel chain. It posits that those who cause pollution should bear the cost of cleaning it up. This should be applied across the entire fossil fuel chain, from extraction and transportation to refining and consumption.
Fossil fuel extractors, such as oil and gas companies, should be held accountable for the environmental damage they cause. This includes the pollution of waterways, air quality degradation, health impact on the population and the destruction of ecosystems.
Shippers of fossil fuels should also be held responsible. The responsibility for shipping a potentially hazardous emission-generating fuel should carry a penalty as it promotes its consumption which leads to obvious emission.
Refiners should also be held responsible as they are making it possible to consume this fuel. The liability cannot be limited to their production processes but the impact of the end-use of their product.
Manufacturers of downstream petrochemical products, such as plastics and fertilisers, too should be responsible for the emissions from their production, the pollution from their disposal, and the microplastic pollution that enters our water.
Recently, the Indian government levied a variable penalty on car companies for not meeting their emission standards. This is a great beginning—the government is looking to extend the application of the polluter pays principle to the supply chain of producers. Large cars and SUVs produce a disproportionate amount of pollution for the same effort and need to be taxed accordingly. Auto companies have shirked their responsibility in the past, as have buyers of large fuel-guzzling vehicles.World leaders have been bamboozled yet again by the show and dance of the fossil fuel industry in Dubai. They must recognise that Net Zero promises are a fake garb that allows the real polluters to hide their emissions. They must implement concrete measures to hold fossil fuel companies and their customers accountable.
Specific actions might include: a global carbon tax that applies to all fossil fuels from extraction to consumption; strict regulations on fossil fuel extraction, transportation, refining, and use. Penalties and taxation always attract strong lobbying and the fossil fuel industry has the strongest lobbying army with every government. Hence, it is important to build financial incentives for energy companies and consumers that are moving away from the extraction, refining, distribution, and use of fossil fuels into green energy.
This is the moment for impactful action. We cannot afford to continue down the path of Net Zero hypocrisy.
(The authors are Researchers at the Centre for Innovation in Public Policy, New Delhi)