The Perilous Path: Why Our Climate Efforts Are Falling Short
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The Current State of Our Planet
As we observe the increasing popularity of electric vehicles like Teslas and the rise of solar and wind energy, one might wonder if we are doing enough to protect our planet. Unfortunately, the answer is a resounding no. The responsibility does not rest with individuals but rather with the shortsighted actions of governments, institutions, and large corporations. Despite the overwhelming evidence from science, economics, and public advocacy, the development of new oil and gas power plants surged by 13% last year, further jeopardizing our climate. This situation extends beyond environmental concerns; the implications are far-reaching.
Recent Findings on Fossil Fuel Expansion
Where does the 13% growth figure originate? The Global Energy Monitor (GEM) published a report indicating that between July 2022 and July 2023, the capacity of oil and gas power stations under development soared by an astonishing 90 gigawatts (GW). This brings the total to 783 GW of new oil and gas power capacity being developed globally. Upon completion, these projects will expand the global oil and gas power sector by one-third, a stark contradiction to the urgent need for a transition to sustainable energy sources.
Here’s a quote to consider: “The expansion of fossil fuel infrastructure poses irreversible risks to our climate.”
The potential consequences of this growth are dire. GEM estimates that these new oil and gas projects could emit an incredible 41 billion tonnes of CO2 throughout their operational lifetimes—equivalent to the emissions produced by the United States over six years, a nation known for its high pollution levels.
Section 1.1 The Urgency of Change
In 2021, the International Energy Agency (IEA) asserted that to achieve our climate goal of limiting global warming to 1.5 degrees Celsius, immediate cessation of fossil fuel expansion is crucial. The establishment of new fossil fuel infrastructure has the potential to lock in tens of billions of tonnes of emissions, pushing us closer to an irreversible climate crisis.
Subsection 1.1.1 The Role of Renewables
It is particularly frustrating to note that renewable energy sources are now as affordable, if not cheaper, than new gas and oil power plants. Furthermore, they can be constructed and integrated into the grid more swiftly. The ongoing expansion of fossil fuels appears to be driven by outdated habits rather than economic rationale—an approach that is both reckless and hazardous.
Section 1.2 Warnings from Global Leaders
At a recent high-profile climate summit, United Nations Secretary-General António Guterres issued a grave warning, stating, “Humanity has opened the gates to hell.” He highlighted the severe impacts of climate change, including distressed farmers witnessing their crops destroyed by floods and rising temperatures facilitating disease spread. Guterres emphasized that our climate actions are dwarfed by the magnitude of the challenges we face. If we do not radically alter our trajectory, we risk entering a dangerous and unstable future.
Chapter 2 The Financial Implications
The first video, "Tame Impala - Feels Like We Only Go Backwards," encapsulates the sentiment of retracing steps, mirroring our current environmental trajectory. The visuals and music convey a sense of nostalgia, paralleling our regression in climate action.
In the second video, "Depeche Mode - Going Backwards," the theme of moving in reverse resonates with the alarming trends in fossil fuel investments. The lyrics and imagery illustrate our collective struggle to progress.
The financial backing for these expanding fossil fuel projects primarily comes from governments, pension funds, and banks rather than from the oil companies themselves. This reliance on fossil fuels has been entrenched in our financial system for over a century, favoring stable returns on investments.
The Risk of Stranded Assets
It is crucial to understand that the newly developed 90 GW of oil and gas power facilities will require an investment of approximately $611 billion. These funds typically come from pension funds and government investments, based on the assumption that these plants will operate for 40 to 50 years, providing a return on investment. However, with countries committed to the Paris Agreement, these facilities may need to be decommissioned by the early 2030s, rendering them financially unviable.
Approximately 15% of U.S. bank debt and 10% of U.K. pension funds are tied up in the fossil fuel sector, a trend that is consistent across the globe. The premature closure of these new fossil fuel assets could lead to significant financial losses for these institutions, jeopardizing the economic stability we rely upon.
Conclusion: A Call to Action
The reckless expansion of fossil fuel infrastructure not only threatens our environment and humanity but also poses a severe economic risk that could destabilize our financial systems. It is imperative that we shift away from this misguided utilization of resources and make a genuine effort to prevent the looming catastrophe that awaits us. We find ourselves in a precarious situation, akin to drifting toward a waterfall while ignoring the urgent need to swim against the current. This reckless mindset must change immediately.
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(Originally published on PlanetEarthAndBeyond.co)
Sources: Carbon Brief, CNN, The Guardian, Climate Change News, Divest, Cleantechnica, S&P Global, BIS, Make Money Matter