MONOPOLY CAPITALI$M
Exxon's $60 Billion Pioneer Deal Set to Create Energy Supergiant

ZeroHedge - May 02, 2024

• 
  
• The Biden FTC's approval of the Exxon-Pioneer deal comes amidst scrutiny from lawmakers concerned about energy price increases.
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• Exxon pledges to lower production costs and achieve net-zero emissions from Pioneer operations by 2035.
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• Approval of the merger is seen as easing tensions between the Biden administration and the oil industry amidst rising domestic crude prices and Middle East tensions.
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Having adversely intervened in virtually every other M&A deal in the past 3 years, the Biden FTC will reportedly allow Exxon's $60 billion purchase of Pioneer to go through after the companies agreed to minor concessions, Bloomberg reported citing people familiar with the matter. The announcement of the deal will likely come any moment, and the resulting deal will make Exxon - a company which Biden once said makes money money than god - far and away the biggest oil and natural gas producer in the Permian Basin, North America’s largest US oil field, and also the biggest energy company in the US.

Pioneer shares that had been down more than 2% on the day reversed those losses and were trading up as much as 0.9% on the news. Hess Corp, the target of a takeover bid by Chevron, also climbed 0.9% although the probability of that deal passing is far lower especially in light of the ongoing arbitration with Exxon over Guyana.  Chevron, Occidental and Chesapeake are among companies with large pending takeovers that are undergoing in-depth reviews before the FTC.

The Pioneer deal will combine two fast-growing Permian operations, lifting Exxon’s production in the basin to the equivalent of about 2 million barrels a day by 2027, up from about 600,000 last year.

More than 50 lawmakers - obviously mostly communists, pardon, democrats - urged the FTC in March to increase scrutiny on concerns a $230 billion wave of consolidation in would increase energy prices for consumers, squeeze suppliers and suppress wages. In short: enforce more Soviet-style central planning and crush conventional capitalism. As a result, investors had feared the agency, which has become more a ruthless enforcer of authoritarian anti-capitalism under Democrat admin puppet Lina Khan, would stand in the way of several large deals, especially in an election year when the Biden administration is seeking to prove its climate credentials and contain gasoline prices at all cost.

In response to the ruling communists, oil executives have claimed the deals will benefit shareholders, consumers and the environment. Exxon CEO Darren Woods said the Pioneer deal would lower its cost of production, making US barrels more competitive in the global market, and provide a strong platform for growth, which would ultimately benefit consumers. Exxon also pledged to reduce climate-warming emissions from Pioneer operations to net zero by 2035, accelerating the prior target by 15 years.

The Biden administration has constantly been at odds with the oil industry, but easing through what many executives see as necessary consolidation is likely to improve relations. With domestic crude prices up roughly 14% this year and tensions rising the Middle East, the administration is vulnerable to Republican attacks on measures that hurt the oil industry and raise fuel prices.

By Zerohedge.com

Egypt Eyes Large Role in Green Hydrogen Production

Alan Mammoser - May 02, 2024,

• 
  
• Egypt’s rich solar and wind resources and its geostrategic location put it in a unique position to become a large producer of green hydrogen.
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• One bellwether to watch, from a company already deeply involved in Egyptian renewable power, is a project led by Dubai-based AMEA Power.
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• European and Middle Eastern companies are investing in hydrogen and/or ammonia production in Egypt.

As host of COP27 two years ago, Egypt saw a flurry of announcements for large scale green hydrogen production mostly in the huge Suez Canal Economic Zone (SCZone) that straddles the ship canal from Port Said to the Gulf of Suez. The proposals draw upon Egypt’s rich solar and wind resources to power electrolysis, anticipating ammonia and other hydrogen derivative exports.

At COP27, the government hailed the signing of eight framework agreements with companies including ACWA Power, Alfanar, Masdar, Scatec, TotalEnergies, and others.

The hydrogen project announcements have continued. In February, government agencies and the SCZone signed seven MoUs with developers. There are now nearly 30 project announcements for green hydrogen and derivatives production in Egypt.  

Given the emergent state of the industry, it is unlikely that all of these will materialize.

But among the plethora of proposals, a few of the more credible ones stand out. A handful of well conceived projects, launched by leading energy and infrastructure companies, are advancing through detailed feasibility phase to pre-FEED with ongoing discussion of financing.

Complementary power  

One bellwether to watch, from a company already deeply involved in Egyptian renewable power, is a project led by Dubai-based AMEA Power.

The company, with extensive experience in renewable power development throughout Africa and Central Asia, knows Egypt well. It is currently building a 500MW solar PV plant in Egypt’s southern Aswan Governorate, and a 500MW wind farm at Ras Ghareb in the Red Sea Governorate.Related: Norway’s Cash Flow From Offshore Fields Crashes Due to Low Natural Gas Prices

AMEA is now turning its experience to the production of green hydrogen in Egypt. It’s project, announced at COP27, will have a 500MW electrolyser and ammonia production plant built in the SCZone near Ain Sokhna. The ammonia production capacity will be 1200 tonnes per day with anticipated annual production of 350,000 tonnes. 

The upstream power production sites are being secured in the West Aswan and West Nile areas for a 550MW solar PV plant, a 700MW wind power plant, and approximately 500MWh battery storage. The complementarity will produce baseload power dedicated to the alkaline electrolysis plant and the ammonia plant. It is separate from the company’s other Egyptian projects.

The project is now close to pre-FEED stage, with a detailed feasibility study conducted by Worley. The FID is targeted for Q4 2025, with COD in Q4 2028.

A beautiful project

“We’re talking about a $2.3 bn project,” says Hussein Matar, Senior Director of Business Development at AMEA Power and head of the company’s green hydrogen team in Egypt.

“It’s a showcase project and the beautiful thing about it is that it was designed from the beginning with banks on board.

“EBRD (the European Bank for Reconstruction and Development) was consulting the Egyptian government during the process,” he says.

“When you ask, why we picked Egypt, a very good reason was that we saw a champion like EBRD coming in, guiding and providing the necessary infrastructure that will allow a private company like AMEA to come in and invest in a very large capacity project.”

“Now we are talking with banks. After pre-FEED, we will be in position to seriously pursue finance.

“We know the best banks to approach for a project like this, the DFIs such as EBRD, which knows this project very well.

“We will go to the IFC, to KfW, Proparco, FMO, and other DFIs providing concessional financing, to everybody who wants to support the green hydrogen sector and energy transition.”

As part of its detailed feasibility study, AMEA hired Norwegian certification company DNV, which undertook a full study on green hydrogen certification and compliance, looking at every type of regulation pertinent to the project including European and the Asian countries.

Matar says the company is looking at demand markets in Europe and Asia, speaking to potential off takers. “We’re seeking exclusivity, some kind of agreement, a take-or-pay arrangement because with this comes bankability,” he says.   

“We’re speaking to a lot of people, nothing signed yet.”  

Name of the game

“We know, two-thirds of the cost of this project will be the cost of producing electrons,” says Matar. “That’s over the 25-year life, including CapEx and OpEx.”

“If you look at that pie chart of total cost, you will see two-thirds, or at least 60 percent, is cents per kWh in OpEx.”

“So the name of the game in terms of cost is not the electrolyser, because the electrolyser cost today represents perhaps 12-13% of that pie chart.

“But if we can drop the price of electricity by 10%, we will see a significant impact, because it’s 10% of 60% versus 10% of 12%.” 

“So we’re looking at pennies on the electrolyser. The big bucks are on the electrons, the power. If we can work out lower cost there, we have a project.”

We know Egypt

The framework agreements signed two years ago included the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and the SCZone to deliver the projects.     

AMEA Power knows them well, having worked with them to develop its large renewables projects. The company is now positioned to leverage the government’s tax incentives for green hydrogen and derivatives, authorized in a new law this year, including generous tax credits, exemptions and reduction of fees.

“We know Egypt,” says Hussein Matar. “It was a natural choice for us.”   

“The largest wind power project in Africa is the one we’re developing now – it’s the lowest tariff in Africa, just over 3.1 cents per kWh.  

“We put our first wind turbine in Egypt a few days ago, 6.5MW, 100m tall, 180m in diameter, it’s absolutely amazing this turbine for our plant at Ras Ghareb.”

Matar sees advantages in the company’s deep experience in renewable power development encompassing utility-scale solar and wind, battery storage, transmission infrastructure, and so forth. The company manages a complex ecosystem of EPC and OEM suppliers.

“We don’t know electrolysis but we’ll produce the electricity, that’s the more complex part, how we get a baseload profile  to come into that production system from combined wind and solar and battery storage,” says Matar.

A key to controlling cost will be development of shared services to convert capital expenditure to operating cost, for example for water desalination. The company is working with SCZone to develop shared services including a water desal plant. Power transmission will be provided by Egyptian utility EETC, with the company negotiating the wheeling charge.

“They’re looking to make it as economical as possible to produce hydrogen and ammonia,” says Matar of the SCZone. “This is a key piece.”  

Hydrogen cluster

Several other major developers in framework agreements with the SCZone are advancing studies of large projects for green hydrogen-based ammonia or methanol. Should these reach construction, they will create a large hydrogen production cluster centered on Ain Sokhna.  

The Saudi water and power developer ACWA Power entered a framework agreement with the Egyptian government late last year to develop a $4bn green ammonia facility, with plans to produce 600,000 tonnes annually in a first phase, scaling up to two million tonnes.

TotalEnergies and the Egyptian investment company Enara Capital have partnered to explore production in the SCZone, beginning with a modest capacity to produce 30,000 tonnes of green hydrogen per year.

The Abu Dhabi clean energy company Masdar is part of a consortium with its Egyptian joint venture Infinity Power and developer Hassan Allam Utilities to build a 2GW green hydrogen production system in the SCZone.

The Norwegian renewable energy company Scatec is leading the development of a project with 100 MW of electrolysis capacity for green ammonia production for a nearby facility of EBIC, a unit of ADNOC’c Fertiglobe. The project will also seek to provide ship fuel to shipping on the nearby trade route. Scatec has partnered with Fertiglobe and Egyptian contractor Orascom Construction.

Hydrogen production is also envisioned on the country’s west Mediterranean coast, where Egypt wants to stimulate economic development. Last fall, the government announced that Belgian marine engineering company DEME is leading a $3bn green hydrogen production project at the new Gargoub Port on the Mediterranean.

“We want to see more projects come into the country, there’s more than enough land,” says Hussein Matar of AMEA Power. “And we hope everyone is serious enough to take this to the next level, to pre-FEED and FEED phases.

“The more serious players the better for all, because they will be party to the water desal plants and to the large transmission lines we’re building with the government.”

By Alan Mammoser for Oilprice.com

 SCI-FI-TEK

Plasma Physicists Use Magnetic Imperfections to Enhance Fusion Reaction

By Brian Westenhaus - May 02, 2024

• Scientists have developed a new approach to fusion plasma control inspired by the Japanese art of kintsugi.
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• The approach involves tailoring magnetic field imperfections to improve plasma stability simultaneously at the core and edge of the plasma.
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• The research has significant implications for the design of future tokamak fusion pilot plants, potentially making them more efficient and reliable.

Princeton Plasma Physics Laboratory (PPPL) idea follows the Japanese art of kintsugi, an artist takes the broken shards of a bowl and fuses them back together with gold to make a final product more beautiful than the original.

Image Credit: Princeton Plasma Physics Laboratory. Click the press release link for the largest view and more images.

That idea is inspiring a new approach to managing plasma, the super-hot state of matter, for use as a fusion power source. Scientists are using the imperfections in magnetic fields that confine a reaction to improve and enhance the plasma in an approach outlined in a new paper in the journal Nature Communications.

Joseph Snipes, the PPPL’s deputy head of the Tokamak Experimental Science Department and a co-author of the paper said, “This approach allows you to maintain a high-performance plasma, controlling instabilities in the core and the edge of the plasma simultaneously. That simultaneous control is particularly important and difficult to do. That’s what makes this work special.”

PPPL Physicist Seong-Moo Yang led the research team, which spans various institutions in the U.S. and South Korea. Yang says this is the first time any research team has validated a systematic approach to tailoring magnetic field imperfections to make the plasma suitable for use as a power source. These magnetic field imperfections are known as error fields.

“Our novel method identifies optimal error field corrections, enhancing plasma stability,” Yang said. “This method was proven to enhance plasma stability under different plasma conditions, for example, when the plasma was under conditions of high and low magnetic confinement.”

Errors that are hard to correct

Error fields are typically caused by minuscule defects in the magnetic coils of the device that holds the plasma, which is called a tokamak

Until now, error fields were only seen as a nuisance because even a very small error field could cause a plasma disruption that halts fusion reactions and can damage the walls of a fusion vessel. Consequently, fusion researchers have spent considerable time and effort meticulously finding ways to correct error fields.

“It’s quite difficult to eliminate existing error fields, so instead of fixing these coil irregularities, we can apply additional magnetic fields surrounding the fusion vessel in a process known as error field correction,” Yang said.

In the past, this approach would have also hurt the plasma’s core, making the plasma unsuitable for fusion power generation. This time, the researchers were able to eliminate instabilities at the edge of the plasma and maintain the stability of the core. The research is a prime example of how PPPL researchers are bridging the gap between today’s fusion technology and what will be needed to bring fusion power to the electrical grid.

SangKyeun Kim, a staff research scientist at PPPL and paper co-author explained, “This is actually a very effective way of breaking the symmetry of the system, so humans can intentionally degrade the confinement. It’s like making a very tiny hole in a balloon so that it will not explode.” Just as air would leak out of a small hole in a balloon, a tiny quantity of plasma leaks out of the error field, which helps to maintain its overall stability.

Managing the core and the edge of the plasma simultaneously

One of the toughest parts of managing a fusion reaction is getting both the core and the edge of the plasma to behave at the same time. There are ideal zones for the temperature and density of the plasma in both regions, and hitting those targets while eliminating instabilities is tough.

This study demonstrates that adjusting the error fields can simultaneously stabilize both the core and the edge of the plasma. By carefully controlling the magnetic fields produced by the tokamak’s coils, the researchers could suppress edge instabilities, also known as edge localized modes (ELMs), without causing disruptions or a substantial loss of confinement.

PPPL Staff Research Physicist Qiming Hu, another author of the paper noted, “We are trying to protect the device.”

Extending the research beyond KSTAR

The research was conducted using the KSTAR tokamak in South Korea, which stands out for its ability to adjust its magnetic error field configuration with great flexibility. This capability is crucial for experimenting with different error field configurations to find the most effective ones for stabilizing the plasma.

The researchers say their approach has significant implications for the design of future tokamak fusion pilot plants, potentially making them more efficient and reliable. They are currently working on an artificial intelligence (AI) version of their control system to make it more efficient.

“These models are fairly complex; they take a bit of time to calculate. But when you want to do something in a real-time control system, you can only afford a few milliseconds to do a calculation,” said Snipes. “Using AI, you can basically teach the system what to expect and be able to use that artificial intelligence to predict ahead of time what will be necessary to control the plasma and how to implement it in real-time.”

While their new paper highlights work done using KSTAR’s internal magnetic coils, Hu suggests future research with magnetic coils outside of the fusion vessel would be valuable because the fusion community is moving away from the idea of housing such coils inside the vacuum-sealed vessel due to the potential destruction of such components from the extreme heat of the plasma.

Researchers from the Korea Institute of Fusion Energy (KFE), Columbia University and Seoul National University were also integral to the project.

**

With a large array of devices trying to hold the plasma in place long enough to enter fusion and stay that way — every bit of know-how that can be gained is worthwhile. Controlling plasma is very difficult activity. Getting good enough at it to start fusion, keep it going, and get net energy out is going to be a challenge noteworthy for all of history.

By Brian Westenhaus via New Energy and Fuel

 

Fossil Fuel Companies Face Mounting Legal Challenges

By Felicity Bradstock - May 02, 2024

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• Lawsuits targeting fossil fuel companies over climate damage have increased, with allegations ranging from violations of state laws to demands for reparations and criminal charges.
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• Indigenous communities worldwide have achieved victories in halting oil and gas projects, highlighting the intersection of environmental law with human rights.
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• Researchers propose a new legal theory suggesting that oil and gas companies could face homicide charges for climate-related deaths, gaining support from legal communities and advocacy groups.

A wide range of organisations and communities are battling against oil majors and winning, as governments worldwide start putting the environment first. In the last few years, the number of lawsuits against oil and gas companies has risen significantly, as more judges rule in favour of indigenous communities and grassroots organisations when it comes to stopping the development of fossil fuel projects and protecting the environment. This trend is likely to continue, with governments and consumers putting increasing pressure on companies to improve their ESG practices and support a green transition. 

In the U.S., there are currently at least thirty-two lawsuits targeting fossil fuel companies over climate damage. The companies accused of these damages include the oil majors Exxon Mobil, BP, Chevron, Sunoco, Suncor, Shell, ConocoPhillips, Koch Industries, and the American Petroleum Institute. Environmental organisations and their lawyers are finding more grounds for lawsuits, as they claim that many oil and gas companies have violated consumer protection, public nuisance, failure to warn, fraud and racketeering laws. Some lawsuits are demanding that oil companies pay damages, while others hope to impose penalties or encourage greater education on climate threats while discouraging future greenwashing. 

Most of the lawsuits claim that the companies in question have known about the impact of the continued drilling for oil and gas on climate change for several decades and have failed to act, instead choosing to spread misinformation and continue polluting operations. While several oil companies have pushed for the cases to be taken to federal court, where they believe they may be better protected, the U.S. Supreme Court has often ruled that cases alleging violations of state laws should be carried out in state court with a jury.

When it comes to indigenous communities, who are often overlooked, particularly when it comes to the exploitation of natural resources, there have been several wins against oil and gas companies in recent years. In India, Adivasi communities held protests that led officials to cancel the auction of land for coal mines in the biodiverse forests of Chhattisgarh State. In South Africa, planned development by Shell Global was halted after the Mpondo people fought against new oil and gas exploration off the Wild Coast. Meanwhile, in Australia, First Nations communities succeeded in blocking the construction of a new coal mine in Queensland. 

These successes led the leaders of grass-roots environmental movements in six countries, including these groups, to win the Goldman Environmental Prize. Michael Sutton, the executive director of the Goldman Environmental Foundation, stated, “One of the things we’ve seen in recent years is that environmental law, protection of natural resources, has become intertwined with human rights law and the law of Indigenous people.” 

Following several lawsuit wins against fossil fuel companies, scientists and environmental groups are becoming more ambitious in their legal aims. Researchers are now suggesting that oil and gas companies could be tried for homicide for climate-related deaths under a new legal theory. Public Citizen suggests that as fossil fuel companies fought to delay climate action, even when they knew about global warming, a case can be made that they committed reckless or negligent homicide. The advocacy non-profit Public Citizen first proposed the theory last year, and it has since gained traction. Aaron Regunberg, the senior policy counsel with Public Citizen’s climate programme, stated, “We’ve been really excited to see the curiosity, interest and support these ideas have garnered from members of the legal community, including from both former and current federal, state and local prosecutors.” 

The organisation is now promoting the theory at some of the top law schools in the U.S., including Yale, the University of Pennsylvania, Harvard, University of Chicago and New York University. The proposal is also due to be published in the Harvard Law Review, supported by extensive evidence showing that the fossil fuel industry has long hidden information about the dangers of fossil fuel use from the public. Along with the charges being carried out in the existing lawsuits, fossil fuel companies could also face criminal charges under this new theory. David Arkush, who co-authored the paper on the proposal, explained, “Criminal law is how we say what is right and wrong in our society.” He added, “I think it’s important that some of the most damaging conduct in human history be squarely recognised and pursued as criminal.”

A spate of lawsuit wins against fossil fuel companies in recent years has encouraged more environmental lawyers, organisations, and communities to carry out legal action against oil majors. Some of the lawsuits call for reparations for damages while others seek to prevent further harm to the environment. These successes have been supported by the significant shift in approach to the energy sector by governments around the globe, as an increasing number of countries introduce ambitious climate targets in line with strategies for a green transition. 

By Felicity Bradstock for Oilprice.com 

 

UK Awards 31 New North Sea Oil and Gas Exploration Licenses

By Charles Kennedy - May 03, 2024

The UK’s North Sea Transition Authority (NSTA) offered on Friday another 31 licenses for North Sea exploration in the final tranche of the 33rd oil and gas licensing round.  

In all three tranches of the licensing round, the UK regulator has awarded over the past few months a total of 82 licenses to 50 companies. The first tranche offered 27 licenses in October 2023, with the second offering 24 licenses in January 2024.

The 33rd round has attracted 115 bids from 76 companies across 257 blocks and part-blocks, NSTA said.

The licenses offered in the round would be expected to add an estimated 600 million barrels of oil equivalent to 2060, or 545 million barrels of oil equivalent by 2050.  

Some of the licenses awarded today are in areas previously earmarked for offshore wind power licenses.

“Following discussions with our partners in The Crown Estate and Crown Estate Scotland, we have introduced a new clause for overlapping oil and gas licences and wind leases for the first time,” NSTA said.

“This will be the main commercial mechanism for these licences to resolve spatial overlaps and to support co-existence of these important industries.”

“The North Sea is an important resource for energy security and net zero delivery, so it’s vital that sectors collaborate to ensure those systems can co-exist,” the regulator said.

The leading industry body, Offshore Energies UK, said that the latest license awards are chiefly for natural gas extraction from the southern North Sea, with the potential to come on stream within the next five years.

“They will make the UK less reliant on imported gas, which the NSTA has shown to be more carbon intensive,” OEUK added

Offshore Energies UK’s CEO David Whitehouse commented,

“In this general election year, we face a choice: we can build a homegrown energy transition and kickstart economic growth by backing our people, our offshore firms and our world class supply chain, or we can import even more energy and fail to grow our new wind, hydrogen and carbon capture industries.”

By Charles Kennedy for Oilprice.com

China, Australia, and Russia Dominate Global Gold Production

May 03, 2024

Over 3,000 tonnes of gold were produced globally in 2023.

In this graphic, Visual Capitalist's Marcus Lu lists the world’s leading countries in terms of gold production. These figures come from the latest USGS publication on gold statistics (published January 2024).

China, Australia, and Russia Produced the Most Gold in 2023

China was the top producer in 2023, responsible for over 12% of total global production, 

followed by Australia and Russia.




Gold mines in China are primarily concentrated in eastern provinces such as Shandong, Henan, Fujian, and Liaoning. As of January 2024, China’s gold mine reserves stand at an estimated 3,000 tonnes, representing around 5% of the global total of 59,000 tonnes.

In addition to being the top producer, China emerged as the largest buyer of the yellow metal for the year. In fact, the country’s central bank alone bought 225 tonnes of gold in 2023, according the World Gold Council.

Estimated Global Gold Consumption

Most of the gold produced in 2023 was used in jewelry production, while another significant portion was sold as a store of value, such as in gold bars or coins.

• Jewelry: 46%
• Central Banks and Institutions: 23%
• Physical Bars: 16%
• Official Coins, Medals, and Imitation Coins: 9%
• Electrical and Electronics: 5%
• Other: 1%

According to Fitch Solutions, over the medium term (2023-2032), global gold mine production is expected to grow 15%, as high prices encourage investment and output.

By Zerohedge.com

Taxing Fossil Fuel Giants Could Generate $900 Billion

By Felicity Bradstock

- May 04, 2024, 

The Climate Damages Tax proposal suggests taxing fossil fuel companies in OECD countries to raise funds for climate finance, potentially generating $900 billion by 2030.

The funds could contribute to the Loss and Damage Fund, supporting countries most affected by climate change, and aid communities in richer countries in transitioning to green energy.

The first board meeting for the Loss and Damage Fund is scheduled, but criticism arises over participation restrictions and delays in establishing the board.


Imposing a tax on big fossil fuel companies could boost climate finance by up to $900 billion by the end of the decade. The International Energy Agency (IEA) has repeatedly emphasized the need for higher levels of climate funding to meet global climate goals and achieve a green transition, but finding this money is not so easy. A recent report has potentially identified a way to raise funds to develop the renewable energy capacity of low-income nations, thereby helping the global green transition.

A new Climate Damages Tax report, published in April by the organization Stamp Out Poverty, suggests that taxing major fossil fuel companies based in some of the world’s richest countries could help raise billions of dollars in funding to tackle the effects of climate change and support the development of renewable energy projects in low-income countries around the globe. Levying a tax on firms in the wealthiest Organisation for Economic Co-operation and Development (OECD) countries could provide as much as $720 billion in climate funding by 2030.

The report shows that the tax could be established within existing tax systems. A rate of $5 per tonne of CO2 starting this year in OECD countries and increasing by $5 a tonne each year would provide $900 billion in funding by 2030. The authors suggest that $720 billion of this could be used to contribute to the Loss and Damage Fund, to support countries most affected by climate change. The remaining funds could be used to help communities in richer countries to undergo a green transition in line with national aims.

Several organizations support the aims of the report, including Greenpeace, Stamp Out Poverty, Power Shift Africa, and Christian Aid. The joint director at Greenpeace U.K., Areeba Hamid, explained “We need concerted global leadership to force the fossil fuel industry to stop drilling and start paying for the damage they are causing around the world. A climate damages tax would be a powerful tool to help achieve both aims: unlocking hundreds of billions of funding for those at the sharp end of the climate crisis while helping accelerate a rapid and just transition away from fossil fuels around the world.”

The Loss and Damage Fund was introduced at the COP28 climate summit in Dubai last year, following years of pressure from low-income countries to develop a fund to help alleviate the burden of climate threats on the developing world. Around 200 countries supported the creation of the fund. Many states across the developing world are highly vulnerable to the effects of climate change and do not have the means to tackle climate change or develop their renewable energy capacity to support a green transition. The fund was established to help countries around the world to combat climate change. Representatives from 24 countries must now decide what form the fund should take, which countries should contribute, and where and how the money should be distributed.

The first board meeting for the Loss and Damage Fund is set to take place in Abu Dhabi next week, where the board will select a host for the fund – expected to be the World Bank – as well as discuss other specifics. There have been several delays in establishing a board for the fund, with the first meeting being pushed from January to May, which has attracted criticism over the lack of action.

There has been further criticism over the participation restrictions to the inaugural meeting. Amnesty International’s Climate Advisor Ann Harrison stated, “Amnesty International and other climate justice organizations are deeply concerned about restrictions imposed on the participation of civil society organizations at the first board meeting of the Loss and Damage Fund.” Harrison added, “This inaugural meeting should set a precedent by enhancing and welcoming the participation of civil society, not severely limiting its involvement. Full involvement of civil society would help reflect the views of the often diverse and marginalized communities whose rights are most affected by the climate crisis.”

The Paris Agreement states that richer countries have a greater responsibility to tackle climate change as they have historically been the biggest carbon emitters. High-income countries participating in the COP summits have repeatedly stated their dedication to raising funds to support a global (rather than just a local) green transition, by contributing to the development of renewable energy capacity in low-income nations and supporting them in their fight against climate change. However, to date, little has been done to raise these funds and develop new projects. Raising money through the introduction of a tax on oil and gas producers in rich, high-polluting countries, such as the U.S., the U.K., Japan, Spain, and Canada, could help raise funds for developing countries, as well as attract greater investment in the Fund.

By Felicity Bradstock for Oilprice.com