Former US Vice President turned climate advocate, Al Gore, asserts that Big Oil, supported by financial institutions, remains entrenched in fossil fuels despite their role being a major contributor to the climate emergency. In an exclusive interview ahead of Climate Week, an annual convergence of global business and government leaders held alongside the UN General Assembly, Al Gore highlighted the substantial profits bankers reap from their involvement as lenders and advisors to fossil fuel enterprises.
Former VP Al Gore emphasized the inherent conflict in expecting fossil fuel corporations, driven by financial incentives, to lead the charge in resolving the climate crisis. Al Gore asserted that the world must address the crisis as a “fossil fuel crisis” and urgently develop strategies to reduce greenhouse gas emissions, without relying on the oil industry’s cooperation.
Recent developments in the energy sector demonstrate a resurgence of focus on fossil fuel endeavors, with companies like Shell Plc exemplifying this trend. In June, Shell unveiled plans to allocate a larger share of its annual budget to oil and gas, a move met with consternation from climate activists, though it correlated with a 10% surge in its stock price.
The departure of BP Plc’s CEO, Bernard Looney, recognized for championing eco-friendly strategies, suggests that BP investors anticipate a shift away from greener initiatives. This aligns with the broader trend in the oil industry, which has been criticized for rhetoric outpacing substantive action towards sustainability.
Moreover, financial institutions have come under scrutiny for inadequate disclosure of their carbon footprints, according to a recent study. BloombergNEF’s estimations indicate that for the world to make significant strides towards net zero emissions by mid-century, banks must divert four times the current capital into renewable energy compared to fossil fuels by the decade’s end, a goal that appears far from attainment.
Al Gore pointed out the bright spots in the fight against global warming, citing a report from Generation Investment Management, a firm he chairs. The report predicts a forthcoming peak and decline in global emissions from electrical grids, underscoring the pivotal role of a cleaner grid in the energy transition.
Despite these positive indicators, Gore emphasized the urgency for decisive action against climate despair. He lauded the Biden administration’s landmark climate legislation, the Inflation Reduction Act, as a game-changer whose impact has been underestimated. Additionally, he acknowledged substantial investments in green technology underway in Europe and China.
China’s contribution to the energy transition, while significant, is not without complexity. Generation’s report highlights China’s leading expenditures on clean energy, juxtaposed with the construction of more coal-fired power plants than any other nation. Nevertheless, Gore commended China’s propensity to surpass expectations in green initiatives.
India’s remarkable progress in solar and wind energy generation, constituting 93% of their new electricity output last year, also garnered praise from Gore. He noted positive shifts in climate policy from new administrations in Australia and Brazil, indicating a broader international momentum towards combating the climate crisis.
In conclusion, while challenges persist, Al Gore expressed confidence in the world’s collective efforts to effect meaningful change in the battle against global warming. He stressed that action remains the antidote to climate despair, underscoring that the world is now moving decisively in the right direction.
Source: Bloomberg
