A new study by the Climate Accountability Institute concluded that fossil fuel companies owe the rest of us $209 billion per year in "climate reparations" for the damage they have done to the planet. An IMF study puts the numbers even higher.
Setting aside whether using the term reparations is the right or wrong way to talk about it, the study opens the door to an honest conversation about responsibility.
This week, leaders from 80 countries are meeting in Paris to redesign a global monetary system to address climate change. A new system should absolutely be based upon the simple idea that we need to all be responsible for our actions.
Let's start with some facts.
The earth is warming.
Burning of fossil fuels is a big part of why. Really big.
Fossil fuel corporations have made billions (trillions, probably) extracting, processing, and selling fossil fuels in different forms.
Fossil fuel companies are businesses that exist to sell their product – as much as possible, as profitably as possible. So, they pay attention and weigh in on any law or regulation that could negatively impact them. For example, Exxon Mobil Corp lists “risk factors” that could “adversely affect our results.” Such as:
• increases in taxes, duties, or government royalty rates (including retroactive claims);
• changes in environmental regulations or other laws that increase our cost of compliance or reduce or delay available business opportunities (including changes in laws affecting offshore drilling operations, water use, emissions, hydraulic fracturing, or production or use of new or recycled plastics);
• actions by policymakers, regulators, or other actors to delay or deny necessary licenses and permits, restrict the availability of oil and gas leases or the transportation of our products, or otherwise require changes in the company's business or strategy that could result in reduced returns;
• adoption of regulations mandating efficiency standards, the use of alternative fuels or uncompetitive fuel components;
• adoption of government payment transparency regulations that could require us to disclose competitively sensitive commercial information.
Fossil fuel companies knew they were harming the planet yet still spent millions (maybe more) denying the existence of climate change to make it more difficult to address it - by making public investments to develop alternatives, limiting emissions from cars, power plants and manufacturing, regulating oil drilling and thwarting any law or regulation that could have “an adverse impact” on their profits. In fact, that’s what they told their investors – and the SEC – that they would do. Take a look at this. You’ll laugh (then cry.)
Then there's the contradictions
1. We buy their oil, energy, plastic and everything else that we’ve come to rely upon. If it all went away tomorrow society as we know it would collapse. Think about it - no oil, no natural gas, no coal fired plants and nothing created from crude oil and a ton of stuff in our homes (take a look.) And, oh yeah, millions of people would lose their jobs - millions.
2. We, naturally, prefer to pay as little as possible for it. So, oil taxes are hard to pass, we hand out gazillion in public subsidies to keep prices lower (and generate profits) and we even cut fuel taxes when gas prices spike.
3. Some of us have oil, coal and natural gas stocks in our retirement portfolios and have received dividends and capital gains. (I'm sure I do - in my index funds.)
So, yeah, we're all responsible and we all have to do our part (actually a real part - meaning use less.)
But some are more responsible than others. They have more power to make decisions that will make a difference (aka avert disaster,) they benefit more, and they KNEW the truth about the impacts of their products. (That’s not actually how I’d define responsibility, but you know what I mean.)
Then there's the bullshit.
We can't create a cause and effect link between GHG emissions and the house you just lost to rampant wildfires in California or Alberta – so you can’t blame the companies. Could be a flood of reckless campers. Note: sometimes you actually can pinpoint the impacts fairly closely.
There's obviously a lot more responsibility to go around about who or what contributed to our most pressing problems - inequality, a clean and sustainable environment and racism. We could probably look at everything we take for granted today and dig into how we are all interconnected - and in some way "responsible." Industries produce things we use but that also pollute our air and waterways. Workers serve us in restaurants who can't afford health care. The clothes we wear is produced in sweatshops. And lots more all the way back to nation’s flawed founding (speaking of reparations.)
The point isn't to tie us up in unresolvable and untraceable knots. That just leads to paralysis or willful ignorance that we’d need to get out of bed in the morning and get through our day.
There are two important points I take from this. First, it's a fact that we are completely interdependent. We can only tackle the big things if we do them together - and in a way that acknowledges that these can't be solutions for only some. Everyone needs clean air and water, we all need to be able to get places, we all need health care and the basics. And we all need incomes that allow us to live dignified lives.
Second, some are more responsible than others - particularly those with more power and ability to create or prevent problems. The oil companies used their power to reduce taxes and prevent regulations and they benefited enormously.
We can’t make the changes overnight, but we can make them take responsibility and pay so we can move as quickly as possible. Reparations? Maybe. Responsibility? Definitely!