Global Climate Movements Seek Fossil Fuel Company Transparency on Future Viability of Oil, Coal, Gas

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Creator: DIW Berlin, Heinrich-Böll-Stiftung, European Climate Foundation. Creative Commons LizenzvertragThis image is licensed under Creative Commons License.

Global Climate Movements Seek Fossil Fuel Company Transparency on Future Viability of Oil, Coal, Gas

Global reporting standards for extractive industries must include transparency from fossil fuel companies about the future viability of their oil, coal and gas projects in a warming world, says a large movement of environment, climate and indigenous peoples organisations.

With only weeks until the Paris climate talks, hundreds of organizations from around the world (see list below) are addressing the Oslo-based Extractive Industries Transparency Initiative (EITI), which sets standards for good governance in the extractive industries. The groups, including Oil Change International, the Heinrich Böll Foundation and the Climate Justice Programme, have written to the EITI, seeking amendments to the global reporting standard to include risks related to climate change. 

“This letter outlines a wide range of concrete steps that would further public debate about the dangers of continued carbon investment and how to stop it" said Naomi Klein, author of This Changes Everything and The Shock Doctrine. "For the fossil fuel industry, there can be no transparency without a full airing of how its business model risks locking us in to catastrophic warming”.

"There is no question that it is past time for the EITI to consider the climate implications of its work.” said Stephen Kretzmann, Executive Director of Oil Change International. “An EITI that doesn't cover climate is like a Health Commission looking at smoking, and ignoring cancer. If the EITI wishes to remain relevant in policy circles, it should move quickly to make climate risk a central part of its mandate."

Mark Campanale, Executive Director and Founder of the Carbon Tracker Initiative welcomes the move, saying: “At the heart of the business model of fossil fuel extractive companies is the presumption that all known reserves are there to be developed and burnt.  This is their core business risk and the climate networks are absolutely right to highlight it as a material financial risk, which is absent from the EITI. Extractive fossil fuel companies should now disclose how their business plans are compliant with a 2 degree future and how they will properly manage their inevitable contraction.”

Lili Fuhr, Head of Ecology and Sustainable Development at the Berlin based Heinrich Böll Foundation said: "We are very pleased to see this strong call for leaving unburnable coal, oil and gas in the ground from such a broad and strong civil society movement. Resource rich but poor countries and their citizens should have transparent and comprehensive information to decide on a sustainable and equitable future development pathway. A reformed EITI taking into account climate risks could contribute significantly towards that objective."

Background:

The groups define ‘climate risk’ as economic and investment risks associated with the drop in demand of oil or coal, or the risk of policy reform that would phase out fossil fuel use in favour of renewable energies. They also identify the increasing risks associated with litigation against the fossil fuel industry for its role in contributing to climate change and the efforts of some to spread disinformation about climate change to prevent policy reform.

The Extractive Industries Transparency Initiative (EITI) is a global Standard to promote open and accountable management of natural resources.  It seeks to strengthen government and company systems, inform public debate, and enhance trust.  In each implementing country it is supported by a coalition of governments, companies and civil society working together. Countries implementing the EITI disclose information on tax payments, licences, contracts, production and other key elements around resource extraction.

The EITI currently has 48 implementing countries and engagement from the biggest fossil fuel companies in the world, Shell, BP, BHP Billiton, Rio Tinto, Exxon, Chevron, Statoil and Total are represented in the international Board of the EITI.

Media Contact:

For more information and media enquiries contact Hannah McKinnon of Oil Change International at hannah@priceofoil.org or by phone on +49 (0) 173 38 32 344

Further contacts:

Lili Fuhr, Heinrich Böll Foundation, fuhr@boell.de, +49 30 28534 304 / +40 151 40201775
Stephen Leonard, Climate Justice Programme, stephen.v.leonard@gmail.com

List of supporting organisations and networks

350.org
Abibimman Foundation
Asia Indigenous Peoples Pact
Association Actions Vitales Pour Le Développement durable
Ateneo School of Government
Carbon Market Watch
Center for Indigenous Peoples Research and Development
Center for International Environmental Law
Centro Mexicano de Derecho Ambiental
Change Partnership
Climate Action Network (CAN) International (over 950 members)
Climate Justice Programme
EcoEquity
EKOenergy
Federation of Community Forestry Users Nepal
Forests of the World
Friends of the Earth Europe
Greater Access Reconstruction and Justice Action Network Nepal
Germanwatch
Global Catholic Climate Movement
Global Citizens Initiative
Greenpeace International
Grupo de Financiamiento Climatico America Latina y el Caribe
Heinrich Boll Foundation
Leave it in the Ground Initiative
Market Forces
Nepal Federation of Indigenous Nationalities
NGO Coalition for Environment, Nigeria
Oil Change International
SONIA for a Just New World
Stop Mad Mining Network
SustainUS
Tebtebba (Indigenous Peoples’ International Centre for Policy Research and Education)
Tree Adoption Uganda
WWF Internation

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