Save the books, cook the planet
Oil and gas companies are increasingly using mergers and acquisitions to offload emissions from their own balance sheets to meet corporate climate goals without actually reducing emissions, according to a report released Tuesday by the Environmental Defense Fund.
Looking at mergers and acquisitions between 2017 and 2021, EDF found 155 deals totaling $84.6 billion that resulted in the movement of assets from companies with zero net promises, and 211 deals worth $115.6 billion. billions of dollars worth of companies with stated methane emission reduction targets. In total, transactions involving “reduced environmental commitment transfers” have increased from 10% in 2018 to 15% in 2021. For example, the weekly flaring of the Umuechem oil field in Nigeria has increased from a maximum of 2 million cubic feet of global warming methane flare per week in 2020, jumped almost overnight to 10 million after it was sold to a private equity firm, a 700% increase.
“You can transfer your assets to another company and take emissions off your own books, but that doesn’t equate to a positive impact on the planet if it’s done without any safeguards in place,” said Andrew Baxter, director of energy transition at EDF. say it New York Times.
Sources: New York Times$, Reuters, Financial Times
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Republished from Nexus Media.
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