fossil fuels – Page 2 – The NEN

UK economy risks collapse without urgent investment in nature

“There is no economy without nature” warns Dr Jeremy Leggett, ex Greenpeace Chief Scientific Advisor
Insurance companies, pension and investment funds are still financing fossil fuels – but urgently need to back nature recovery

The Green Finance Institute estimates that the UK is facing a finance gap of up to £97 billion to meet the UK’s nature-related targets by 2032. Without investment in climate mitigation, biodiversity restoration, flood prevention and other nature-related outcomes as outlined in public policy like the 25 Year Environment Plan, both our natural environment and economy face collapse.

Highlighting the urgent need for investment in nature, in the week that climate action group One Home reported that £600 million worth of homes are at risk of falling into the sea, Jeremy Leggett called on the UK’s financial sector to “step up or get washed away”.

Leggett, a former Chief Scientific Advisor to Greenpeace and founder of Solarcentury, one of the world’s most respected solar energy companies, is an experienced entrepreneur, who backed solar technology long before the government and financial institutions. Decades later, having proved his point with solar providing the cheapest energy available, he is now urging the financial sector to wake up to the facts and invest in the protection of nature.

“By continuing to invest in fossil fuels and related industries which destroy nature, institutional investors and many large funds are financing their own demise. There will be no business in a broken world. If big business does not invest in biodiversity and natural capital now, there will be no business.

He continued: “While the recent donation from Aviva of £38 million to the Wildlife Trust is a welcome development, donations are not a sustainable model for financing nature recover. Highlands Rewilding, and related projects, offer a new model for investment in nature-based solutions, with multiple revenue streams providing an economic and ecological return on investment.”

Having grown Solarcentury from a small South-London roofing company to a major international business deploying gigawatts of solar PV around the world, Leggett sold Solarcentury to Statkraft, which is owned by the Norwegian Ministry of Trade. But, rather than retire, Leggett invested his share of the proceeds – and raised more than £7 million – to start Highlands Rewilding, which currently owns two estates in Scotland.

“What we are doing here is opening up a pathway for businesses to finance nature recovery,” explains Leggett. “Humanity is at a tipping point which can go either way. Either we invest in the restoration of the natural environment, or we risk the complete collapse of civilization as we know it – including the economy.”

For the last few months Highlands Rewilding has been running a crowdfunding campaign, which has exceeded its initial target and raised over £700,000 from more than 400 individuals.

“Hundreds of citizens are helping to finance the vital nature recovery we so desperately need. But so far it is almost exclusively individuals who have stepped up to invest”, says Leggett.

“Government announcements, like the UK’s Ambitious roadmap for a cleaner, greener country, have pledged public money but the effort to halt biodiversity loss will need the backing of major investment funds, who are still sitting on the fence. The evidence is clear; Nature needs our help. But the major financial institutions are ignoring the warnings – and the opportunities.

“We saw it happen with renewables. Major finance was too slow to see the scale of the opportunity and too slow to come on board. Thankfully that situation changed but it took too long and we are living with the consequences. The situation is now even more urgent. Big business needs to back natural capital or the erosion of the economy will follow the same fate as the Norfolk coastline.”

Leggett is not alone in his assertions. Andy Howard, Global Head of Sustainable Investment points out that over half of global GDP, $44 trillion, is dependent on nature and its services, commenting: “The reality is stark: nature risk is fast becoming an integral factor to investment risk and returns”.

Dame Glenys Stacey, the chair of the government’s own Office for Environmental Protection commented that wildlife in particular was suffering “eye-watering” declines. “Species decline stands out – the rate of decline is inexorable,” she said. “This needs a lot of intervention, that is absolutely required.”

With the Treasury already stretched to its limits and further tax rises not compatible with the cost-of-living crisis it seems hard to imagine the government will be able to address the urgent funding gap at the required speed, or scale, to halt and reverse species decline. The only hope therefore is private sector finance and commercial capital.

In Scotland, Highlands Rewilding is performing a litmus test, entering the final quarter of its race to raise the required funds to scale nature recovery in Scotland. Their investment round is one of the first efforts after COP 15’s landmark biodiversity agreement, to break through the barrier of institutional finance.

‘Obscene’ Shell profit shows urgent need to get off fossil fuels

Climate campaigners have reacted to the announcement of Shell’s 2022 profits of £32.2billion ($39.9b), saying the figures show that our harmful energy system must urgently be transformed away from fossil fuels.

Climate science is clear that we urgently need to transition away from our broken fossil fuel energy system in order to secure a liveable future. Analysis has shown that renewable energy is 9 times cheaper than new fossil fuel energy.

A Channel 4 investigation in August 2022 shows Shell invested equivalent of just 6.3% of its £17.1bn profits into low carbon energy, investing nearly three times more in oil and gas.

Independent climate advisors have said that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market. However, continued reliance on volatile fossil fuels will leave millions vulnerable to spikes in their prices.

Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said: “The announcement of yet another obscene profit for Shell shows the scale of the harm that these companies are inflicting on households and businesses.

“Oil company bosses and shareholders are being allowed to get even richer by banking huge profits, while normal people are facing enormous energy bills and millions are being forced into fuel poverty.

“Shell is worsening climate breakdown and extreme weather by continuing to invest and lock us into new oil and gas projects for decades to come. Their Jackdaw project was given the green light by the UK Government in 2022 and we know they only invest a small fraction of their profits into renewable energy.

“These profit figures are further evidence that our current fossil fuelled energy system is seriously harming people and the climate. Despite this, the Scottish Government’s recent draft Energy Strategy contains very few new steps to tackle the climate crisis or the immediate impacts of the cost of energy crisis.

“Ministers should instead chart a clear path away from fossil fuels and towards an energy system that is built on clean, reliable renewables. They must listen to the science which tells us that to meet climate targets in a fair way, fossil fuel extraction needs to be phased out in the next decade.”

Friends of the Earth: UK Government ‘sticking two fingers up’ to climate with new oil and gas licenses

Environmental campaigners have reacted angrily to the UK Government plans to increase exploration for new oil and gas fields despite the devastating climate impacts of burning fossil fuels.

They accused politicians of ‘sticking two fingers up’ to scientists calling for an end to fossil fuels to protect the climate. Climate science and energy experts have repeatedly warned that any new oil and gas projects will push the world well past dangerous climate limits.

The North Sea Transition Authority confirmed today that they will invite companies to apply for over 100 licences to explore for more fossil fuels in the North Sea.

The UK Committee on Climate Change said earlier this year that the timeline from the issuing of an exploration licence to production commencing ranges from under a decade to several decades, with an average of around 28 years.

First Minister Nicola Sturgeon opposed the controversial Cambo oil field last year, and has since recognised that oil and gas is not a solution to the current price crisis, but has so far stopped short of opposing the Jackdaw or Rosebank fields.

Friends of the Earth Scotland’s Oil and Gas campaigner Freya Aitchison said:
“By encouraging greedy fossil fuel companies to keep looking for more fossil fuels, the UK Government is denying the reality of the climate emergency.

“It is sticking two fingers up to climate scientists and energy experts who have made it clear that there should be no new oil and gas if we are to remain within agreed climate limits.

“The devastating climate impacts people are enduring with floods in Pakistan, Hurricane Ian in the US and the scorching heatwave in the UK are being driven by burning fossil fuels. The UK Government clearly doesn’t care about the impact its decisions will have on vulnerable people and communities around the world.

“Instead of new fossil fuels, we urgently need a transition to an energy system powered by renewables, and a mass rollout of energy efficiency measures to reduce energy demand. With the cost of living skyrocketing due to the volatile prices of oil and gas, it’s obvious that our current energy system is completely unfit for purpose, serving only to make oil company bosses and shareholders richer while everyone else loses out. ” 

On the Scottish Government’s role:

“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels in the North Sea. These announcements risk locking us into a climate-destroying energy system for decades to come, entrenching reliance on this volatile industry in places like Aberdeen, and leaving people all across Scotland exposed to rocketing energy bills.”

On the ‘Climate Compatibility Checkpoint’:

“The UK government’s supposed checkpoint is a worthless charade as there can be no climate compatible new oil and gas. It is a deeply cynical attempt to provide cover for reckless plans to expand the very industry that is fuelling both the climate and the cost of living crises.

Lorna Slater: Greens £1.8 Billion pledge crucial as gas prices surge

Vital plans to invest at least £1.8 billion to make buildings in Scotland net zero were endorsed by parliament this week, just as gas prices surge, threatening to push many more families across the country into fuel poverty.

Figures show that a quarter of households in Scotland are already considered to be in fuel poverty. Scottish Greens Lothian MSP Lorna Slater has said that as well as the need to tackle the immediate problem, the issue shows that the requirement to lower Scotland’s climate emissions goes hand in hand with tackling fuel poverty.

Scottish Greens co-leader and Lothian MSP Lorna Slater said: “The surge in gas prices is a real concern to so many people who rely on fossil fuels to heat their homes, and, yet again, demonstrates why we must end our dependency on volatile, unreliable and climate-destroying fossil fuels.

“That’s why we are accelerating plans to make homes across Scotland more efficient and to switch from fossil fuels to renewable alternatives. To support this, we will invest at least £1.8bn over the next five years.

“It has been galling to see Boris Johnson preach climate responsibility on the world stage while his government is forcing families into poverty in Lothian and beyond. All the while he is doing nothing to decarbonise heating and transport.

“We don’t have time for this kind of reckless approach, which is why, with Greens in government, Scotland will take a different path.”

Lothian Pension Fund invests over £164 million in fossil fuel polluters

A new report has revealed that the City of Edinburgh Council’s own pension fund has £164,691,111 invested in climate-polluting fossil fuel companies. The revelations come despite the council declaring a climate emergency in 2019 and committing to become a net-zero carbon city by 2030.

The report found that overall in Scotland, £1.2 billion was invested in fossil fuel companies by council pension funds. None of the 20 Scottish councils that have declared a climate emergency have taken action to end their investments in the coal, oil and gas firms chiefly responsible for driving this crisis.

The report by Friends of the Earth Scotland, Platform and Friends of the Earth England, Wales and Northern Ireland was compiled from Freedom of Information requests.

Lothian Pension Fund is the second largest local government pension scheme in Scotland and administers the pensions of 84,000 members. (4) Lothian is operated by the City of Edinburgh Council on behalf of East Lothian, West Lothian and Midlothian.

Lothian Pension Fund invests £771,000 in Exxon and £1.47 million in Royal Dutch Shell. The companies are co-owners of the Mossmorran plants in Fife, which is Scotland’s third largest climate polluter. The Scottish Government is currently considering launching a public inquiry after 5,000 complaints were submitted about the flaring, air and noise pollution from the site.

The pension fund also invests £9.1 million in the Italian oil company, Eni. Both Eni and Exxon are involved in the construction of a major gas export development in Mozambique which is associated with increased militarisation and violence in the region, and led to the displacement of local communities.

Strathclyde Pension Fund was the worst offender in Scotland after being found to have £508 million invested in companies such as Shell, BP and Exxon. This is despite Glasgow hosting the UN climate conference later this year and Councillors declaring a climate emergency in May 2019.

As fossil fuel company stocks have fallen in value in recent years, local councils have lost out. £194 million of value was wiped off the oil and gas investments of the Scottish council pensions between 2017-20 with the Strathclyde Pension Fund alone losing £46 million and Lothian Pension Fund losing £36 million.

Across the UK, total fossil fuel investments in the pension funds stood at £9.9 billion – an average of £1,450 per scheme member.

Over half of Scotland’s universities have committed to divest from fossil fuel companies, including Edinburgh, Stirling and Dundee Universities, alongside local government funds in Southwark, Islington, Lambeth, Waltham Forest, and Cardiff.

Alan Munro from local campaign group Divest Lothian said: “We all deserve a future worth retiring for, but continued investment in fossil fuels by our politicians and local councils threaten that future, both here in the Lothians and around the world.

“We’ve been campaigning for some time for the Lothian Pension Fund to make a strong commitment to climate action and divest from the fossil fuel companies. Public institutions have a moral duty to put the long-term well-being of their communities first.

“This recent report shows that, up to present, the Lothian Pension Fund has not heeded our calls for divestment. As Scotland prepares to host the UN COP26 Climate conference in November, the fund has an opportunity to show climate leadership and invest more in renewable energy and other sustainable and ethical sectors so that we can create a better future.”

Ric Lander, Divestment Campaigner at Friends of the Earth Scotland, commented: “Many local authorities have declared a climate emergency and have plans in place to bring down emissions from transport, buildings and waste.

“Pension fund investments are currently working against this progress by continuing to back the ageing fossil fuel economy. Local councillors have the opportunity to show leadership on climate action by telling fund managers to divest from fossil fuels.

“Scottish council pensions are directly invested in the continued search for new fossil fuels through their ownership of companies like Shell and BP. This drive is undermining efforts to curb the climate emergency here in Scotland and doing untold damage to vulnerable communities around the world.”

Stephen Smellie is Deputy Convenor of UNISON Scotland, who are the largest union representing local government pension fund members. He reacted: “It is disappointing that the people who manage the pension funds of local government workers are oblivious to the climate crisis that is facing us.

“Workers care deeply about a sustainable future for their children, and if pension funds consulted with the people whose money they are investing they would know that. Instead, they continue to be part of the climate crisis problem rather than being part of the solution that they could be if they increased investments in sustainable alternatives.

“The value of the fossil fuel investments is high but only a small percentage of the funds’ overall investments so there is no financial justification for maintaining investments in coal, fracking or further fossil fuel exploitation.”

“There is a moral and ethical case for divesting from polluting fossil fuels. But there is also a firm financial case to remove workers’ pension funds from investments that will lose value as the world moves to a low-carbon economy which is less dependent on fossil fuels.”

Johnstone presses for fracking ban

‘Scottish government must come off the fence’ – Alison Johnstone MSP

$frack$

Alison Johnstone, Scottish Green MSP for Lothian and a leading campaigner against unconventional gas extraction, is challenging coal gasification firm Cluff over their claim that ‘it is neither necessary, nor in the public interest’ to examine the risks of their plans.

Cluff wrote to all MSPs before Tuesday’s announcement that their plans for drilling under the Forth are on hold, and today Alison replied, challenging the company’s views.

Scottish Green MSPs have been campaigning against unconventional gas extraction – also known as ‘fracking’ – since the 2011 election. Alison Johnstone led Holyrood’s first debate on the issue in May 2014, proposing a ban – all other parties voted against it.

Alison Johnstone MSP said: “Before Cluff got cold feet and announced a delay in their plans, they wrote to all MSPs as part of a charm offensive. Scottish Greens support the many community groups around the Forth who have made their opposition to coal gasification clear, and I have written back to Cluff challenging their claims.

“Cluff have attempted to downplay coal gas disasters elsewhere but I believe we must look at where things have gone wrong to help us understand the risks. We know of serious problems in Australia, resulting in widespread contamination of land. We know investigators were hospitalised with suspected gas poisoning during soil testing.

“It is therefore essential that Cluff lays out in detail the safety record of its projects rather than dismissing concerns out of hand. Cluff also choose to ignore the fact that we already have far more fossil fuels than we can burn if we want to limit climate change.

“Scotland is in a privileged position to end its reliance on fossil fuels earlier than other countries and create many more jobs by investing in sectors such as renewables, green chemistry, home insulation and forestry.

“In the meantime the Scottish Government must come off the fence, extend their temporary fracking moratorium to include coal gasification given it requires onshore infrastructure and turn it into a permanent ban, to protect our communities, our economy and our climate.”

Fracking hell: new report ignites energy debate

‘No place for fracking in Scotland’s energy future’ – Patrick Harvie

$frack$ Scotland is sitting on enough shale oil and gas to meet our energy needs for the next half-century, according to a new report by the British Geological Survey – but environmentalists are warning that ‘fracking’ to get at shale gas deposits would have serious consequences for local communities.

The British Geological Survey’s report of the resources in the Midland Valley, Scotland, suggests a ‘modest’ amount of gas and oil in place. The central estimate of shale gas in place is 80 trillion cubic feet, the central estimate for shale oil in place is 6 billion barrels of oil.

However ‘modest’, the Department of Energy and Climate Change believes ‘ the complex geology of the area and historic mine workings means that exploratory drilling and testing is even more important to determine how much can be recovered.’

Business and Energy Minister Michael Fallon said: “Making the most of Britain’s home grown energy is crucial to keep job and business opportunities, widen tax revenues and reduce our reliance on foreign imports.

“We know that shale gas alone won’t be able to supply all of our energy needs, but the environmentally responsible exploration of shale gas could contribute to our energy mix.

“Only the broad shoulders of the United Kingdom can attract investment in new energy sources and maintain the UK’s position as one of the world’s great energy hubs – generating energy and generating jobs.

“The UK’s energy security is among the best in the world, backed by a large consumer and tax base that can afford to support our world-leading energy industries and make us such an attractive place to invest.”

Professor Mike Stephenson, Director of Science and Technology at the British Geological Survey said: “The central estimate of shale gas in place is 80 trillion cubic feet and the central estimate for shale oil in place is 6 billion barrels of oil but reserves cannot be calculated at this stage before drilling and testing take place. The Midland Valley of Scotland has complex geology and a relative lack of data compared to the previous DECC-BGS Bowland-Hodder and Weald Basin studies”

However Green MSP Patrick Harvie says the study by the British Geological Survey shows that ‘potentially modest’ reserves of shale oil and gas prove that fracking shouldn’t figure in Scotland’s energy future.

He pointed out that the estimated 80 trillion cubic feet of shale gas in central Scotland is just six per cent of the reserves thought to be present in northern England and said a huge swathe of Scotland – from Argyll to Aberdeenshire and from Ayrshire to East Lothian – has been earmarked as ‘ripe for fracking’ by the UK Government.

Mr Harvie, Green MSP for Glasgow and Co-convener of the Scottish Greens, said: “This study puts paid to all the hype we’ve been fed about a shale bonanza. Not only would fracking divert attention from our undoubted renewables potential but any economically viable extraction would be modest and short-term. Greens want a long-term energy plan for Scotland, and we have abundant clean sources to do this.

“As communities across Scotland realise the risk to their local environments from the prospect of fracking, and as climate science tells us we must start to leave unburnt fossil fuels in the ground, it’s clear that any such developments will face strong opposition.

“It all serves as a reminder that Westminster controls energy policy in Scotland. The chance to pursue clean, long-lasting power rather than polluting, finite fuels is a compelling reason to vote Yes in September.”