Message From the Editor

The oil industry likes to boast that it fills New Mexico’s coffers with revenues from drilling, but a new study finds a serious gap in funding available to tackle the environmental legacy of abandoned wells. As the report found, New Mexico is facing more than $8 billion in cleanup costs for oil and gas wells, an enormous liability that taxpayers could be left to pick up if drillers go out of business or walk away from their obligations. Nick Cunningham reports.

Also this week, a DeSmog investigation has found that nearly a third of the directors of Africa’s biggest bank, South Africa’s Standard Bank, have close connections to the coal industry, casting doubt on their ability to ensure the organisation’s business is aligned with global climate goals. The news comes as Standard Bank recently agreed to set plans to reduce its fossil fuel financing in line with climate goals, following shareholder and activist pressure. Rachel Sherrington has the scoop.

Have a story tip or feedback? Get in touch: editor@desmogblog.com.

Thanks,
Brendan DeMelle
Executive Director

P.S. Readers like you make it possible for DeSmog to hold accountable powerful people in industry and government. Even a $10 or $20 donation helps support DeSmog’s investigative journalism.

New Mexico Stuck With $8 billion in Cleanup for Oil Wells, Highlighting Dangers From Fossil Fuel Dependence

— By Nick Cunningham (5 min. read) —

New Mexico is facing more than $8 billion in cleanup costs for oil and gas wells, an enormous liability that taxpayers could be left to pick up if drillers go out of business or walk away from their obligations.

Cleaning up old wells at the end of their operating lives can be expensive, and typically states require drillers to cover part of the cleanup cost at the outset, known as financial assurance requirements. The money is tapped later on when the well or pipeline must be dismantled and cleaned up.

One in Three Directors at Africa’s Biggest Bank Have Ties to the Coal Industry

— By Rachel Sherrington (4 min. read) —

Nearly a third of the directors of Africa’s biggest bank have close connections to the coal industry, casting doubt on their ability to ensure the organisation’s business is aligned with global climate goals.

A DeSmog investigation has found that 29 percent of board members of South Africa’s Standard Bank have current or former roles in companies involved in the coal supply chain that are included on the Global Coal Exit List (GCEL). Nearly a quarter (24 percent) of board members have current ties to the industry, making it the most coal-affiliated of any of the 39 banks analysed by DeSmog. Over 80 percent of directors had a past or current tie to polluting industries, either as a current or former adviser or employee.

HSBC to Phase Out Coal Financing After Shareholder Vote

— By Phoebe Cooke (3 min. read) —

Shareholders at HSBC have voted overwhelmingly to end financing of the dirtiest fossil fuel, coal.

Preliminary voting results showed that 99.7 percent of the bank’s shareholders voted in favour of the management-backed climate resolution at HSBC’s annual general meeting.

China Finances Most Coal Plants Built Today

— By Jeff Nesbit, Yale University (5 min. read) —

As nations gear up for a critical year for climate negotiations, it’s become increasingly clear that success may hinge on one question: How soon will China end its reliance on coal and its financing of overseas coal-fired power plants?

China represents more than a quarter of all global carbon emissions, and it has spent tens of billions of dollars to build coal power facilities in 152 countries over the past decade through its Belt and Road Initiative. Roughly 70% of the coal plants built globally now rely on Chinese funding.

‘Landslide Victory for Climate Justice’: Court Rules Shell Must Cut CO2 Emissions 45 Percent by 2030

— By Jessica Corbett at Common Dreams (4 min. read) —

Climate campaigners worldwide are celebrating after a Dutch court on Wednesday ordered fossil fuel giant Royal Dutch Shell to cut its carbon emissions 45% by 2030, compared with 2019 levels—a historic ruling that activists hope is just the beginning of holding the oil and gas industry accountable for driving the climate emergency.

“This is a landslide victory for climate justice,” said Sara Shaw of Friends of the Earth International (FOEI). “Our hope is that this verdict will trigger a wave of climate litigation against big polluters to force them to stop extracting and burning fossil fuels. This result is a win for communities in the Global South who face devastating climate impacts now.”

Engine No. 1’s Big Win Over Exxon Shows Activist Hedge Funds Joining Fight Against Climate Change

— By Mark DesJardine, assistant professor of strategy and sustainability at Penn State and Tima Bansal, Canada research chair in business sustainability at Western University for The Conversation (5 min. read) —

One of the most expensive Wall Street shareholder battles on record could signal a big shift in how hedge funds and other investors view sustainability.

Exxon Mobil Corp. has been fending off a so-called proxy fight from a hedge fund known as Engine No. 1, which blames the energy giant’s poor performance in recent years on its failure to transition to a “decarbonizing world.” In a May 26, 2021 vote, Exxon shareholders approved at least two of the four board members Engine No. 1 nominated, dealing a major blow to the oil company. The vote is ongoing, and more of the hedge fund’s nominees may also soon be appointed.

From the Climate Disinformation Database: Steve Baker

Steve Baker has been a Conservative MP in the UK since the country’s 2010 General Election. Baker is a long-time Eurosceptic. In 2015 he co-founded Conservatives for Britain, a campaign organisation formed just after the General Election in June of that year to lobby for a referendum on the UK’s membership of the EU. During the referendum campaign, Conservatives for Britain supported Vote Leave. The president of Conservatives for Britain is Nigel Lawson, who has come under fire numerous times in the news for his vocal denial of climate science. This week DeSmog reported that Baker has joined the UK’s principal climate science denial group the Global Warming Policy Foundation (GWPF).

Read the full profile and browse other individuals and organizations in our Climate Disinformation Database and Koch Network Database.