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A recent study by Dartmouth College scientists in New Hampshire asserts that a mere 111 companies are responsible for a staggering $28 trillion in global economic losses due to climate change since the early 1990s. This groundbreaking research highlights the urgent need to address climate change and the impact of major corporations on the environment.
Major Contributors to Climate Damage
The study identifies the largest contributors to climate-related economic losses, with energy companies leading the list:
- Saudi Aramco: The oil giant tops the list, accountable for $2.05 trillion in global economic damages stemming from intensifying extreme heat.
- Gazprom: The Russian energy conglomerate is linked to approximately $2 trillion in losses.
- Chevron: The American oil and gas corporation is associated with $1.98 trillion in damages.
Top Ten Offenders in Climate Impact
Other prominent entities within the top 10 contributing to climate change include:
- ExxonMobil
- BP (British Petroleum)
- Shell
- National Iranian Oil Co.
- Pemex
- Coal India
- British Coal Corporation
Experts suggest that without the extensive emissions from these entities, the current “climate catastrophe” would likely not be occurring.
The Case for Climate Liability is Closed
“We argue that the scientific case for climate liability is closed,” stated Justin Mankin, a climate researcher at Dartmouth College and author of the study.
The Financial Toll of Fossil Fuels and Global Warming
Energy firms, including Saudi Aramco, Gazprom, Chevron, ExxonMobil, and BP, extract fossil fuels like oil and gas. Burning these fuels releases substantial amounts of greenhouse gasses, such as carbon dioxide and methane, into the atmosphere.
The ensuing global warming results in:
- Increased occurrence of wildfires
- Significant crop damage
- Extreme weather events, including floods and storms
These events carry substantial financial implications, contributing to the overall $28 trillion in damages.
Linking Emissions to Climate Change Damages
This study associates emissions from major fossil-fuel companies with specific climate change-related damages.
This has been made possible due to:
- Greater availability of climate and socioeconomic data
- Progress in “climate attribution science,” which involves modeling to monitor the effects of climate change in near real-time
Data indicates extreme heat linked to carbon dioxide and methane emissions from these 111 entities resulted in $28 trillion in economic losses between 1991 and 2020.
Distribution of Losses Among Top Emitters
Approximately one-third of the total losses, equating to $9 trillion, can be attributed to the top five emitting companies: Saudi Aramco, Gazprom, Chevron, ExxonMobil, and BP.
Chevron, the highest-emitting investor-owned company, is linked to up to $3.6 trillion in heat-related damages during this period.
Regional Disparities in Climate Change Impact
Pollution from Chevron alone has increased Earth’s temperature by 0.045°F (0.025°C). The study indicates that over half of the 111 companies analyzed are based in the United States. However, the U.S., along with Europe, experiences relatively “milder costs from extreme heat” compared to regions in South America, Africa, and Southeast Asia.
It’s estimated that each one percent of greenhouse gas emissions since 1990 has caused $502 billion in damages from heat alone, excluding costs from other extreme weather phenomena like hurricanes, droughts, and floods.
Potential for Legal Action Against Climate Polluters
Researchers draw parallels between the liability of fossil fuel corporations today and the damages caused by pharmaceutical and tobacco firms in the 20th century.
The team suggests it will soon be feasible to successfully sue major corporations for contributing to climate change.
While local and national governments have started seeking compensation directly from fossil fuel companies, many of these lawsuits face challenges or delays in court.
One of the primary hurdles is demonstrating that specific climate impacts are a direct result of a particular company’s greenhouse gas emissions.
Zero Carbon Analytics reports there are 68 climate change damage lawsuits globally, with over half of them in the United States.
The Path Forward for Climate Accountability
“Just as a pharmaceutical company would not be absolved from the negative effects of a drug by the benefits of that drug, fossil fuel companies should not be excused for the damage they’ve caused by the prosperity their products have generated,” Callahan added.
The study, featured in Nature, addresses a question posed in 2003 regarding the scientific capability to link an individual firm’s emissions to climate change.
“Over 20 years later, we find the answer to be yes,” stated Professor Mankin. “Our framework can provide robust emissions-based attributions of climate damages at the corporate scale.”
“This should help courts better evaluate liability claims for the losses and disruptions resulting from human-caused climate change.”
Michael Mann, a climate scientist at the University of Pennsylvania, suggests the provided numbers are likely an “underestimate” of the true damage, as many climate variables remain unaccounted for.