November 4, 2016 Read More →

Oil Consortium Pledge to Invest $1 Billion in Clean Energy Dismissed as Insubstantial

Ian Johnston for the Independent:

Ten major fossil fuel companies have announced plans to spend an extra $10m (£8m) a year each on developing low-emission technologies over the next decade.

The firms, including BP, Shell, Saudi Araco, Statoil and Total, claimed the new $1bn fund would result in a “step change” in the fight against global warming.

But an energy analyst dismissed the suggestion, saying the sum was a “drop in the ocean” compared to the companies’ vast profits.

However Dr Jonathan Marshall, energy analyst at the Energy and Climate Intelligence Unit (ECIU), was distinctly underwhelmed by the announcement.

“Investing $1bn over 10 years averages to just $10 million per year per company involved,” he said.

“For comparison, Shell’s capex budget for 2016 alone is $25-29bn, Saudi Aramco values itself at more than $2 trillion, and the cost incurred by BP following the Deepwater Horizon spill was $61.6bn. Relative to these numbers, this figure is a drop in the ocean.

“Again, for comparison the Breakthrough Energy Coalition, comprised of philanthropists, has pledged double the oil companies’ planned clean energy investment. Bill Gates’ contribution alone matches that of the OGCI.”

Full article: Big oil pledge to help tackle climate change dismissed as ‘drop in ocean’

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