daniel chigunwe
A retrospective climate tax on the 30 biggest oil and gas companies could raise over US$1 trillion towards the UN’s loss & damage fund, with potential to raise US$300 billion from the Big 5 Western oil majors alone, according to new Global Witness analysis.
In the 50 years since leading producers privately acknowledged that their oil and gas was contributing to global heating, ExxonMobil, Chevron, Shell, BP and TotalEnergies (the Big 5) have collectively polluted the atmosphere to the tune of 60 billion tonnes of CO2 – the effects of which are contributing to unprecedented heatwaves, devastating flooding, and withering droughts the world over.
In response, a movement of campaigners, researchers and government officials formed a Climate Damages Tax (CDT) coalition, which has designed a tax system for the fossil fuel industry, based on each tonne of coal, oil or gas they extract.
Forward-looking studies have shown CDT would raise billions for countries devastated by climate change, and to help pay for the transition to green energy, transport and jobs.
But these studies haven’t looked back at the pollution already caused by Big Oil’s extraction. Using the base Climate Damages Tax rate of US$5 per tonne of CO2 emitted, Global Witness calculates that the pollution already caused by the Big 5 merits a bare minimum liability of US$294 billion in today’s money.
Patrick Galey, senior fossil fuels investigator for Global Witness, said: “Big Oil has been allowed to pollute and profit without consequence, ruining millions of lives and livelihoods around the world.
“But the tides are turning. We have the receipts; we know exactly who is responsible for climate collapse. This is a call for those responsible to pay the bare minimum in damages. We know they can afford it; in the last two years alone they’ve trousered more than $280 billion in pure profit.”
Global Witness analysed the oil and gas production of the top 30 most polluting companies over the past half century.
With the cost of climate Loss and Damage expected to exceed $390 billion in 2025 alone, we propose that these producers pay for what they have polluted.
The total amount owed is over US$1,22 trillion. This could fund the UN-audited Loss and Damage Fund for the next 12 years.
Based on their emissions over the past 50 years, the five largest oil and gas contributors to the CDT would be: Saudi Aramco (US$327 billion owed), Kuwait Petroleum Corp (US$81.5 billion), ExxonMobil (US$78 billion), Chevron (IS$71,5 billion), and Shell (US$56.5 billion).
Under a base-rate climate damages tax on their emissions since 1975, BP would owe some $54 billion and TotalEnergies US$34 billion — Global Witness
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