‘Big Oil’ invests more in renewable energies than any other industry.
Mistakenly, too many people listen to CNN or Fox News when it comes to the environment. Instead they should be reading articles directly from the sources in question. If a citizen wants to know what the unemployment rate is, they should not listen to the ‘ra ra’ nature of sensationalized media. Instead they should Google “unemployment rate bureau of labor statistics” and click on the link from the Department of Labor.
Similarly, for climate change they should read reputable sources from NASA to the reports issued by the Intergovernmental Panel on Climate Change. Despite the loads of credible news sources that are readily available online, society has become increasingly partisan and closed off to facts.
To the Republicans, there is a stereotype that most Democrats are '“hippies” or “tree huggers”. To the Democrats, there is a stereotype that most Republicans are “capitalist pigs” or “climate change deniers”. Thankfully, the stereotypes are wrong.
Sixty-six percent of Republicans, 74 percent of Independents and 90 percent of Democrats said they believed in human-caused climate change and the utility of reducing greenhouse gases.
Generally, the main disagreements are based upon blind ideological loyalty and not policy. Policy differs only slightly between the Republicans and Democrats. Republicans favor “revenue-neutral carbon taxes” while Democrats favor “cap-and-trade” policy.
Revenue-neutral carbon taxes are two-fold. Revenue-neutral means that every dollar increased with a carbon tax, there is another dollar decreased in some other aspect of government. These types of proposals take into account the negative external consequences of pollution, but offset government in another way. British Columbia in Canada was the first North American country to implement a measure.
Cap-and-trade policy is another good method of holding both consumers, firms, and government accountable. Firstly, there is a cap on the amount of greenhouse gases that can be admitted. As time progresses, the cap becomes more strict which is aligned with the various climate change reports that argue we must be carbon negative in the future. Secondly, companies have the ability to buy and sell 'carbon allowances’ like any other type of market, but the higher prices incentive firms to creatively lower carbon emission.
The Oil and Gas Climate Initiative (OGCI), which brings together 13 of the world’s top oil and gas companies, pledged earlier this year to slash emissions of a potent greenhouse gas by a fifth by 2025.
Despite increasing pressure from governments, many are worried these multinational companies are duplicitous in blocking legislation that could help the environment. According to Jeanne Martin of campaign group ShareAction, she criticized the oil industry for “blocking climate initiatives and regulations, and [investments] in fossil fuel projects that have no place in a well-below 2 degrees Celsius world.”
She could absolutely be right. However, the greatest thrust that drives companies is profit. Despite the variable renewable energy profit margins, they climbed as high as 10.21% in September 2018.
Consumers and firms must realign how they buy to change corporate culture.