Greenhouse Gangsters Published by TRAC Transnational Resource vs. Climate Justice and Action Center Greenhouse Gangsters* vs. Climate Justice Contents 1 Introduction: Oil’s Injustices • Defining Climate Justice 6 Part 1: The Most Powerful Industry on Earth • Size Matters • Getting Their Way • Oil, Globalization and Climate Change 11 Part 2: The Corporate Response: The Five “Ds”: Deny, Delay, Divide, Dump, Dupe 22 Part 3: A Platform for Climate Justice • Remove the Causes of Global Warming • Oppose the Destructive Impacts of Oil Locally and Globally • Forge Just Solutions Between and Within Nations • Reverse Corporate-led, Fossil Fuel-Based Globalization.

Sidebars 3 What is Climate Justice? 4-5 The Basics: What is Climate Change? 8 Other Corporate Climate Culprits—Car, Coal, Utilities 17 Global Warming and Global Equity 19 The World Bank’s Climate Hypocrisy 21 Hydrocarbons and Human Rights 24 No New Exploration 27 End Notes

*The American Heritage Dictionary definition of gangster is “an organized group of criminals.” The history of big oil’s collusion, price fixing, transfer pricing, environmental crimes, complicity in human rights violations and most recently, concerted efforts to undermine initiatives to address global warming, effectively stealing our children’s future, eminently qualifies them as such.

Written by Kenny Bruno, Joshua Karliner and Published by TRAC—Transnational Resource & Action Center China Brotsky Transnational Resource and Action Center PO Box 29344 Kenny Bruno is a Research Associate with TRAC. San Francisco, CA 94129-0344 USA He also works with Earthrights International Tel: (415) 561-6568 e-mail: [email protected] (ERI), on human rights and environment issues. Kenny worked with Greenpeace for more than TRAC works to build global links for human twelve years on a variety of domestic and interna- rights, environmental justice and democratic tional toxics issues. He is co-author of Greenwash: control over corporations. We publish Corporate Watch, www.corpwatch.org, an Internet maga- The Reality Behind Corporate Environmentalism (Third zine and Resource Center.This paper and sup- World Network/Apex Press, 1996). plemental materials are also available on the Corporate Watch website in both PDF and HTML formats at Joshua Karliner is TRAC’s Founder, Executive http://www.corpwatch.org/climate. Director and editorial coordinator of Corporate This paper was made possible with a generous grant from The Watch. He is author of The Corporate Planet: Ecology Turner Foundation. and Politics in the Age of Globalization, (Sierra Club We wish to thank those who helped us with research, review of Books, 1997). His writing has appeared in many the paper and other support, including: Joe Anderson, David Atkin, publications, including The Washington Post, The San Stephanie Barnhart, Marc Beck, Adam Davis, Antonio Diaz, Megan Doyle, Danny Faber, Jennifer Ferrigno, Kirsty Hamilton, Liz Karan, Francisco Chronicle, and Global Policy Dialogue. Danny Kennedy, Rob King, Geoff Kinsey, Denny Larson, Julie Light, Penn Loh, Esperanza Martinez, Richard Moore, John Passacantando, China Brotsky is Chair of TRAC’s Board. She Angela Ranzoni, Amit Srivastava, Steve Sawyer, Tristi Tanaka, Jorge is Director of Special Projects of the Tides Varela Marquez, Daphne Wysham. Foundation and The Tides Center. She is an TRAC is a project of The Tides Center. Organizing Board member of the Political Printing: Autumn Press. Printed with union labor on recycled 30% Ecology Group, a San Francisco-based environ- Post Consumer Waste paper with soy based inks. mental justice organization, and is a long time Cover Art: Paul Normandia environmental and social justice activist. Design: Melissa Lawton Design ©TRAC/Tides Center, November 1999 bad it will be. And if take public transport to work, and Introduction the extraordinary economic incentives for conserva- number of extreme tion and efficiency are practically weather events the non-existent. world has recently The ability of the individual con- has meant mastery been experiencing— sumer to influence climate is killer hurricanes, throughout the dwarfed by the impact of giant floods and heat waves corporations which explore for, twentieth century.” in places as far flung as extract, transport, refine and dis- Central America, —Daniel Yergin, tribute oil which is the primary Bangladesh and the “ source of carbon dioxide emissions The Prize East Coast of the — by far the major greenhouse Oil United States—are a gas. Just 122 corporations account harbinger of what is to for 80% of all carbon dioxide come, the greenhouse world will emissions. And just five private be harsh indeed. As we hurtle into the twenty-first global oil corporations—Exxon century, oil is still King. But it does The common wisdom is that the Mobil,1 BP Amoco,2 Shell, not rule benevolently. Rather, the modern consumer is at fault; Chevron and Texaco—produce oil reign of those who control the excessive driving, homes packed that contributes some ten percent politics of petroleum continues to with appliances, central heating of the world’s carbon emissions.3 undermine democracy while fos- and cooling, and failure to turn off While these five companies and tering human rights violations and the lights when leaving the house their allies in Congress are busy environmental disasters across the are what’s ailing us. This is partly blaming the American consumer Earth. true. But the ability of individual consumers to radically change Now, by making a major contribu- their lifestyle while participating Climate change affects everyone and 1 tion to a global problem that in mainstream society is severely looms larger than perhaps any everything. Bound Brook, New Jersey limited. U.S. residents cannot easi- before it, big oil may well have ly buy a solar-powered house or in the wake of Hurricane Floyd, met its match. Indeed, climate low emission car, many cannot September, 1999. change (often referred to as global warming or the greenhouse effect) has the potential to radically damage entire ecosystems, agriculture, and the inhabitability of whole countries. Changing the climate affects every- one and everything. Despite the efforts of a few transnational oil cor- porations (as well as their cohorts in the coal, chemi- cal and car businesses) to dupe the public into think- ing that global warming is not a real threat, the vast majority of the world’s cli- mate scientists and a grow- ing body of evidence say it is. No longer does the sci- entific debate focus on if global warming will hap- pen, but rather on how soon it will occur and on how for massive energy consumption, Meanwhile, tankers and pipelines Meanwhile, in order to remain or the “Developing World” for belonging to corporations like “competitive” in a global econo- not taking adequate steps to curb Texaco and Exxon Mobil have my they themselves have helped global warming, the emissions leaked and gushed oil into rivers shape, the Greenhouse from the fuel they produce and the sea, devastating aquatic Gangsters are cutting costs at exceed the total of all green- ecosystems, undermining the home. To do so they are under- house gasses coming from livelihood of local fisherfolk the mining worker health and safety, Central America, South America world over, and, once again, gen- and shedding jobs. They are also and Africa combined! erating resistance in communities merging with one another to across the globe. form a group of “super major” In addition to producing the oil companies—oil behemoths of a which is bringing on global warm- Refineries run by the likes of BP scale not seen since the break-up ing, these Greenhouse Gangsters con- Amoco and others have spewed of the Standard Oil empire near- tribute to and perpetuate the cli- toxic waste into the workplace, ly a century ago. mate change dynamic in several as well as the air and groundwa- other key ways: ter of neighboring communities, Big Oil’s profits depend upon the for decades. This behavior has perpetuation of local environ- — They are refiners and marketers severely affected the health and mental injustices along this glob- of oil and gas. safety of refinery workers. It has al chain of production that — They use their political power left the refineries’ neighbors— reaches from extraction, to trans- to prevent technological often poor communities of portation, to refining, to distribu- transformation and maintain color—dirty water and air, low tion. These activities lead up business as usual. property values and depressing and contribute to climate — They buy public and nick names such as “cancer alley.” change. In fact, the looming scientific opinion. But it has also helped spawn a crisis of climate change repre- vibrant movement for environ- sents the globalization of this 2 Oil’s Injustices mental justice that has spread chain of local ecological and At the same time that the green- across the United States. human rights problems. In a house gangsters are pushing the sense, global warming is the world to the edge of global eco- explosion of this diversity of logical havoc, they continue to he dynamics of corpo- local problems into a full blown relentlessly destroy the health rate-led globalization are planet-wide disaster of unprece- and well being of local commu- only magnifying this dented proportions. complex set of problems, nities and ecosystems where What’s more, catastrophic cli- Tand with it, the injustices. Big oil profits from oil are to be found– mate change itself will bring is riding the wave of globaliza- be it in the mangrove swamps of with it a new round of injustices. tion to more profits, power and the Niger Delta, the far reaches While the least powerful are the pollution. With the help of insti- of the Amazon basin, or the frag- ones who are hit hardest by the tutions such as the World Trade ile environs of the Arctic. oil industry’s multitude of Organization and subsidies from As Ecuadorian activist Paulina impacts today, it will once again the World Bank, the Greenhouse Garzon describes the petroleum be the poor and disenfranchised Gangsters are expanding their industry’s tremendous impacts: who will suffer the most severe exploration into new, uncharted, “Oil has changed the face of our effects of global warming. For often pristine ecosystems popu- land and the life of our people instance, when Hurricane Mitch lated by Indigenous peoples. Big forever.”4 ravaged Central America in Oil is also buying up newly pri- 1998, it generated hundreds of Indigenous peoples and local vatized state-owned oil compa- thousands of environmental communities are organizing to nies in countries like Russia, refugees. In the same year, nearly protect their human and environ- Brazil and Venezuela. What’s unprecedented flooding in mental rights in almost every sin- more, the oil industry is making Bangladesh severely impacted gle place where Big Oil sucks new investments in refining and millions of people’s lives in one crude from the ground. distribution in these and other of the poorest nations on Earth. Unfortunately, they are often energy hungry countries—foster- met with government repression ing a greater global dependence If, as scientists predict, sea levels carried out in complicity with oil on oil. rise while floods and droughts giants like Shell or Chevron. increase, the rich, middle class and poor will all be affected. living in the already oil ravaged WHAT IS CLIMATE JUSTICE? Beach-front property on the wetlands of Nigeria and Climate Justice means, first of all, removing the East and West coasts will be Louisiana, who will have the causes of global warming and allowing the Earth to inundated, agriculture and com- least recourse as the oceans sub- continue to nourish our lives and those of all living merce will be disrupted, hunger merge their already toxified and disease will spread. But it landscapes, while scarce services beings. This entails radically reducing emissions of car- will be people in places like and relief supplies are channeled bon dioxide and other greenhouse gases. Bangladesh, along with those to the more privileged. Climate Justice means opposing destruction wreaked by the Greenhouse Gangsters at every step of the production and distribution process—from a morato- Defining Climate Justice world and DUPE the public rium on new oil exploration, to stopping the poisoning through massive PR campaigns. of communities by refinery emissions—from drastic Building a framework for domestic reductions in auto emissions, to the promo- he severity and planet- tion of efficient and effective public transportation. wide nature of climate Climate Justice also creates an change represents a sort alternative to “solutions” to glob- Climate Justice in the United States means the solu- of an endgame for the al warming—such as emissions tions adopted to ward off global warming can’t fall Tglobal oil corporations. It sets up trading—that do not take the hardest on low income communities, communities of a showdown between the social dimension of climate color, or the workers employed by the fossil fuel indus- Greenhouse Gangsters whose change into account. try. Climate Justice means fostering a just transition activities are at the heart of the Climate Justice integrally links for these constituencies to a healthier and more just global warming crisis, and Cli- human rights and ecological sus- environment to work and live in. mate Justice. The gathering tainability, recognizing that the Climate Justice means providing assistance to com- forces of Climate Justice can be communities fighting to live free munities threatened or impacted by climate change, broadly defined as the interests of the environmental and social such as the communities devastated by Hurricanes of the vast majority of the problems created by big oil are Mitch and Floyd. world’s people and that of the also on the front lines in the ecological stability of the Earth. battle against climate change. Climate Justice means that while all countries should participate in the drastic reduction of greenhouse gas What can the average person The ranks of those fighting for emissions, the industrialized nations, which histori- do to promote Climate Justice? Climate Justice are filled by cally and currently are most responsible for global It remains true that each of us democracy movements strug- warming, should lead the transformation. The United should consume the least gling against oil interests around resources possible, using energy the world. They include com- States, which emits about 25 percent of greenhouse efficient cars and light bulbs, munities polluted by refineries gasses, must in particular be at the forefront of this etc. But just as important, each and working for environmental transformation. of us can join the effort to hold justice in the United States, as Climate Justice for developing nations means that corporate climate culprits well as Indigenous people trying international institutions such as the World Bank and accountable for their role in to maintain their cultures and World Trade Organization should halt their funding what may well be the largest their lands. Residents of smog- and promotion of corporate-led fossil fuel-based environmental justice issue of filled cities, and students seeking globalization and instead foster the transformation to all time. to reign in unaccountable uni- sustainable and equitable development based on clean Climate Justice provides an versity investments all can be energy technologies. alternative to the “solutions” cor- advocates for Climate Justice. Ultimately, Climate Justice means holding fossil fuel porations have proposed to the Activists working to generate climate problem—false solutions democratic control over corpo- corporations accountable for the central role they which are divisive, inequitable rations and to reverse the play in contributing to global warming. This signifies and unjust. Their response, destructive dynamics of global- challenging these companies at every level—from the detailed in this report, is not dif- ization, along with those production and marketing of the fossil fuels themselves, ferent from past corporate fighting the environmentally to their underhanded political influence, to their PR responses to environmental destructive policies of the prowess, to the unjust “solutions” they propose, to the problems—to DENY the prob- World Bank and the World fossil fuel-based globalization they are driving. Climate lem, DELAY solutions, DIVIDE Trade Organization, are also Justice means stripping transnational corporations of the opposition, DUMP their advocates of Climate Justice. the tremendous power they hold over our lives, and in technologies on the developing its place building democracy at the local, national and international levels. Hurricane Mitch strikes Honduras, October 1998

support life. Climate change is the effect on Kyoto Protocol, this paper does not review the The Basics the natural climate caused by human scientific arguments of the climate skeptics.8 activities. Industrial society is affecting the Recent weather events show that the theory Indigenous prophecies are dovetailing climate by releasing massive amounts of of man-made greenhouse gases causing global greenhouse gases into the atmosphere. As with scientific projections. What we have warming is not only correct, but that the cli- industrial activities have increased, the known and believed, you now also know. mate has already been affected. Greenhouse atmospheric concentrations of greenhouse gas concentrations are higher now than any- The Earth is in disequilibrium. Plants are gases have also increased, upsetting the natu- time in the last 220,000 years. Seven of this ral balance of gases. The primary greenhouse disappearing, animals are dying and the century’s hottest years were in the 1990’s; gas is carbon dioxide (CO2), which represents 1998 was the hottest followed by 1997. Arctic weather itself—the rain, the wind, and the bulk of man-made greenhouse gas emis- and Antarctic ice are shrinking alarmingly. sions. The main activities that cause these fire—react against human activities. Since 1980, there has been an increase in carbon emissions, are burning of fossil fuels— both drought and deluge, unevenly distributed —The Albuquerque Declaration of coal, oil and gas—for heat, electricity and around the world. Cloud cover has increased 5 transportation. Indigenous Peoples in some regions, nighttime temperatures are Climate Change is Real rising, coral reefs are being bleached, and the What is Climate Change? list of already observed impacts goes on.9 There has been intense debate over the sci- ence of global warming and whether human The Kyoto Protocol he Earth’s climate is the result of activities will really change the climate. The Kyoto Protocol is the key international complex interactions between the Industry has used this debate skillfully to agreement on climate change. It was negoti- atmosphere, ocean, land masses and instill doubt in policy makers and the public ated by most of the world’s governments as living organisms, all of which are eye in order to avoid changing business as part of the Framework Convention on Climate Twarmed by the sun. Greenhouse gases trap the usual. Even now there remain a handful of Change under the auspices of the United heat of the sun, and the natural balance of climate skeptics who emphasize the uncer- Nations. The Kyoto Protocol recognizes the those gases is what allows our climate to tainties involved and the possibility that problem of climate change and calls for reduc- some factor will emerge to tions in carbon emissions from the industrial- Other Hydrocarbons 5% counteract the effects of man- ized countries by the year 2008 – 2012. For made greenhouse gasses. By far CF-12 6% the U.S. the reduction is to be 7% below 1990 the majority of scientists and levels, for Europe the target is 8%. Developing Nitrous Oxide 6% other sectors, including the countries are not immediately required to take Intergovernmental Panel on action.10 Climate Change (IPCC)—a UN panel of 2000 of the world’s The United States signed the Convention in Methane 19% top climate scientists—the U.S. November 1998, but the Senate has said it government, and even most of will not ratify it unless major changes are the private sector now agree made, including “meaningful participation” Carbon Dioxide 64% that climate change is real.7 from developing countries. The Protocol would be hollow without the U.S., since it is the Since the world community has largest source of greenhouse gases. Although resolved this debate by agree- the Protocol does not go nearly far enough to Share of Greenhouse Warming ing to take action to prevent prevent dangerous climate change, most envi- Due to Different Greenhouse Gases climate change through the ronmental groups support it as a first step Source: World Resources Institute, 1998 But within those countries, certain groups China 14% South Asia 4% Middle East 3% have less capacity to adapt and adjust to the Africa 3% changes. Low income people by definition Rest of Asia-Pacific 11% Latin America, Canada have fewer resources to move, rebuild, find and Caribbean 7% new jobs, and protect their health. While the Japan 5% climate itself does not discriminate, as with other environmental issues, communities of color, long subject to institutionalized racism, USA 24% Europe 28% are likely to have to fight harder for a fair share of resources and protections.

CO2 Emissions from Fossil Fuel Burning by Country/Region Certain communities already bear the brunt (Includes Cement Manufacturing) of oil company activities. Some of these com-

Source: World Resources Institute, 1998 munities are the hosts of oil refineries, where chronic air pollution and toxic accidents are and many lobby for strengthening its provi- dependent on farming, fishing or forestry will common. Denny Larson, from the National Oil sions. Most of the oil industry has vociferous- well see their livelihoods destroyed…The poor Refinery Action Network calls these problems ly opposed the Kyoto Protocol. would suffer the most because they have “local warming.” He says that “the refinery fewer options for responding to climate communities have been the guinea pigs. If Climate Change and change.” this is how the oil companies treat the local Environmental Justice UNEP goes on to note that the likely impacts community, why would you expect them to 13 “The ferocity of Hurricane Floyd—like of climate change may lead to mass migrations, treat the global climate any differently?” which themselves lead to social and political Hurricane Mitch, which killed 9,000 When we all fill up our tanks with gasoline, conflict, and loss of cultural identity.11 oil creates more problems still. For while the people in Central America—is part More specifically, the Small Island States— individual must take some responsibility for of a pattern of extreme weather which mostly in the Pacific and Caribbean—are likely his or her impact on the global environment, it also must be understood that air pollution results directly from early-stage global to be the hardest hit. Some low-lying islands may become totally uninhabitable, and entire in many major cities—contamination that warming.” populations will become environmental most severely affects the inner city poor— can be attributed to a concerted historical — Ross Gelbspan, author, The Heat Is On6 refugees. effort by oil and auto corporations to under- Other countries likely to suffer dramatically are mine public transit systems and foster n a global scale, climate change is in South Asia, where life is heavily dependent dependence on the gas guzzling car.14 likely to be the biggest environ- on the pattern of monsoons, and floods have a 12 Exacerbating the injustice of the situation is mental justice issue ever. The rea- devastating effect. In 1998, the world wit- the fact that the poorest people—in the son is simple: the poor are most nessed a distressing example of the vulnerabil- industrialized North and the South—have Ovulnerable to the effects of climate change. ity of countries in Central America to hurri- neither contributed to the problem to a sub- The United Nations Environment Programme canes such as Mitch, which destroyed large stantial degree nor benefited financially from summarizes the reason: parts of Honduras and Nicaragua, killing thou- sands and generating hundreds of thousands of the fossil fuel industry. With climate change, “The predicted impacts of climate change environmental refugees. it’s the poor who pay, not the polluter. would probably exacerbate hunger and poverty around the world…People who are highly There will be many people in rich countries who are affected by climate change as well. Fully integrated corporations such Part 1: The Most Powerful as Exxon Mobil, BP Amoco, Royal Dutch Shell, Chevron and Texaco Industry on Earth generate hundreds of billions of dollars in revenue every year. They have a vested interest in all stages of the industry, from exploration and production to transport, refin- ing, and marketing final products such as gasoline. Their tentacles reach deep into the political “Dig deep process of almost every country on Earth. And their product is the pri- search well, and you find that the emissions, whether they are coming mary source of global warming. from Nigeria or the United States, are flowing from the multinational Overall, almost 80 percent of companies.” 15 —Oronto Douglas, Environmental Rights Action, Nigeria human produced carbon dioxide emissions come from just 122 pri- Size Matters But what if a group of companies vate and state owned corpora- were so powerful that they could tions.18 The oil produced by the Preventing climate change will take control world politics and markets to five Greenhouse Gangsters nothing less than a monumental such a degree that it became impos- accounts for some 10 percent of all collective effort to wean society sible to steer them, even for govern- global carbon dioxide emissions.19 from fossil fuels, which are current- ments? What if the policies of those If we look at other measures such as ly the very lifeblood of our companies are the reason that we as refining or control of key regional economies, and even our daily lives. individuals are locked into fossil fuel markets, the role of this group of 6 We all must change. But how? use? What if their leaders believed, five fossil fuel corporations is con- siderably greater. As we enter the new millennium, like John D. governments are looking to the Rockefeller world’s most powerful economic before them, actors, the transnational corpora- that “It is not the tions, for technological and market business of the oriented solutions to our environ- public to change Peter Bijur mental problems. Many of the most our private con- Chairman Kenneth Derr active environmental pressure tracts?”16 Should Chairman groups, from the relatively main- we then look to Lucio A. Noto them to volun- Chairman, President and Chief Executive Officer stream Environmental Defense Mike Bowlin Chairman, President and Fund to the more radical tarily steer Chief Executive Officer Greenpeace, routinely discuss the themselves, or

Steven W. Percy should we try Chief Executive O need to steer the private sector fficer toward solutions. Ethical investors to gain demo- approach the same goal using the cratic control over their persuasion of capital. The transna- A. L. Condray President Philip Carroll tional corporations, with their vast activities? Chief Executive Officer resources and technical capabilities, In a world These guys can actually can invent and implement solutions increasingly change the weather. faster than government agencies, dominated by The burning of fossil fuels — oil and coal — is the major cause of global warming. Global warm- And the rest of the companies are exploring perhaps faster than we can imagine. ing is now an accepted scienti in other locations for oil we must not burn. transnational fic fact. Unchecked, it will mean more severe storms, more These companies need to be pressured to Their behavior will determine our corporations, more crop failures. floods, do what is prudent and necessary for life on this The truth is, it would take over planet. They need to be pressured to spend their future. burn the proven reserves of oil at thefi currentfty years rate to of research and development dollars to promote the oil indus- use. Sadly, if we were to burn all that oil, along with energy efficiency and implement solar and other even moderate amounts of coal, the resulting change renewable energy sources. We have more than try is the in climate would create a world-wide catastrophe. enough reserves, more than enough time to prevent The men who run the major oil companies disruptions in the lives of the American people while largest busi- must know the last thing we need is more oil. we provide an orderly shift from oil and coal to Yet, British Petroleum and ARCO are planning renewable energy. to drill in the pristine waters off the North Coast We at Greenpeace are leading the Oil produced by Shell alone accounts fight to stop ness on of Alaska. the oil companies from further exploration for oil we do not need and must not burn. Please join us. for more carbon dioxide than most earth.17

You can reach Greenpeace at countries in the world. 800-326-0959 or www.greenpeaceusa.org Nations vs. Corporations production accounts for emissions 24 that surpass those of its home Continent, Country and Corporate CO2 Emissions country, Britain, while Exxon Mobil emissions equal some 80% Company, Country Million Metric Tons of CO2 of those from all of Africa or South or Continent Emitted Annually America. South America 747.3 “Getting Their Way” Africa 745.6 The oil industry’s power cannot be BP AMOCO 622.6 (including ARCO) measured merely by sales, assets, or barrels of oil produced. We EXXON MOBIL 601.4 must also look at their political United Kingdom 543.3 influence. In the United States, these companies are used to “get- SHELL 493.7 ting their way,” as The New York Central America 477.0 Times puts it. The Times calls Exxon Canada 470.8 and Mobil “rich in cash, aggressive in style…effective in pursuing their Ukraine 430.6 agenda…at the highest level of Italy 410.0 government and through arm- 25 France 362.0 twisting in Congress.” Mexico 327.6 The Center for Responsive Politics reports that the oil industry as a Brazil 287.5 whole spent $62 million on lobby- Australia 286.0 ing Congress in 1997, the fourth largest amount of any industry.26 7 Saudi Arabia 227.1 On top of this, between 1991 and CHEVRON 187.6 1996, the oil and gas industry con- Netherlands 178.8 tributed over $53 million to candi- dates and Political Action Turkey 160.5 Committees, with most going to Thailand 155.5 Republicans. One analysis showed TEXACO 145.7 that these contributions were steered strategically to members of Argentina 128.3 key Senate committees.27 In return for this investment, the oil industry receives more than five billion dol- For example, the Saudi Arabian 22% of the US gasoline market, lars a year in corporate welfare state-owned Aramco corporation is and BP Amoco has 16%.23 from the U.S. government.28 Not a the single largest corporate climate Another way to look at the role of bad deal, for them. culprit, responsible for nearly 7 per- these companies is to compare cent of global emissions. But most This mutually supportive relation- their production to country emis- of the oil the Saudi Aramco pro- ship between Congress and Big Oil sions. When we do so, we find that duces is refined and distributed in undermines the ability of the U.S. while many of the greenhouse Europe, the US and Japan by three government to effectively deal gangsters are busy insisting that the of the Greenhouse Gangsters: with the most serious, and poten- Third World reduce its emissions, Exxon Mobil, Chevron and tially calamitous, environmental these corporations produce oil that Texaco.20 issue in history. And it further is responsible for far more green- undermines a democratic process Similarly, BP Amoco alone, after its house gasses than most countries. already corrupted by overwhelm- acquisition of Arco, will control Oil produced by Shell alone emits ing corporate influence. 59% of U.S. refining and marketing more carbon dioxide than most and 28% of European refining.21 What’s more, as The New York Times countries in the world, including Texaco has 3,200 gas stations in once again points out, the power Canada, Brazil, Mexico, France, Brazil, a 13% retail market share.22 of Big Oil is greater than the sum Australia and Spain. BP Amoco’s Exxon and Mobil combined have of its parts because the industry is Other Corporate Climate Culprits The Auto Industry Automobiles and trucks use a great deal of the world’s oil. In the U.S., $62 Million Lobbying transportation overall accounts for about 31% of CO2 emissions, the $13 Million Public Relations most of any sector in the world. In the U.S. especially, millions of $53 Million Campaign Contributions drivers have been “sold” on the need for gas guzzling Sport Utility Vehicles and luxury models. The auto manufacturers have instigated, How Big aided and abetted this preference because Sport Utility Vehicles create Oil Rigs higher profit margins. Meanwhile, they have consistently resisted and delayed switching to fuel-efficient models. the System Worldwide, General Motors and Ford combine to control nearly 1/3 of the market for cars and light trucks, and could affect worldwide carbon emissions substantially by focusing on creating and marketing fuel cell, hydrogen based or fuel efficient cars. Both companies have concentrated more on beefing up sales of luxury cars.

Senate BillionsInaction$5 in Billionon Profits Kyoto in Corporate Welfare In March 1999, DaimlerChrysler announced the welcome news that they have developed a fuel cell car to be marketed in the year 2004. However, in the meantime, every car manufacturer is making big often “marching, engined SUVs as fast as it can make them, while lobbying to exclude and lobbying, in these vehicles from fuel efficiency standards.32 lockstep.”29 Or as Exxon Chief Lee Raymond Coal Corporations told an audience of his col- Besides oil and natural gas, coal makes the largest contribution to leagues: “united we stand, global warming. In addition, coal can cause severe local pollution, divided we fall.” Raymond has 8 both from mining and from burning. Coal producers supply 25 percent called for “cooperation” to prevent a “fall” on criti- of the world’s primary energy demand. A number of giant coal compa- cal issues such as climate change. The models for nies—Peabody, Cyprus Amax, Rio Tinto, CONSOL, BHP, and Arch these campaigns include working with other trade Coal—compete with the oil giants for the dubious distinction of groups, employees, and even consumers. Raymond greenhouse gangsters. Together these six transnational corporations has underscored the importance of allying with the are responsible for nearly five percent of all global carbon emissions.33 auto industry in confronting the Kyoto Protocol.30 As they globalize their mining operations, expanding throughout the This alliance of corporate climate culprits extends Third World, these corporations are fostering many countries’ depend- beyond lobbying to coordinated public relations ence on carbon intensive coal for their energy needs. These same cor- campaigns. These PR initiatives, run under the porations are also aggressively working to undermine the Kyoto guise of front groups like the Global Climate Protocol through their industry association, the World Coal Institute, Coalition or industry associations such as the as well as through the Global Climate Coalition.34 American Petroleum Institute, have also had pro- found effects on the U.S. government’s ability to Electric Utilities seriously address climate change. Electricity generation is another sector that plays a giant role in glob- For instance, in the run-up to the original Kyoto al warming. Like that of motor vehicles, the responsibility of utilities Protocol meeting in 1997, industry ran a $13 mil- overlaps with oil companies. Much of the utilities’ fuel is oil, and the lion dollar advertising campaign aimed at under- general public is the ultimate consumer of the product. Still, the elec- tric utility companies must become part of the solution to global mining support for the climate treaty. Then, in warming. The top three electric utilities emit over 100 million tons of April 1998, the National Environmental Trust dis- carbon dioxide annually. These companies’ emissions are comparable covered a $5 million plan by industry, including with the burning of oil and gas from Texaco, or with all the emissions Exxon and Chevron, to train climate science skep- from Argentina.35 tics in public relations so as to convince the public that climate change was not real.31 These efforts

may well be just the tip of the PR iceberg—the Company CO2 Emissions ones that have come under public scrutiny. Name in Tons per Year Certainly we can expect that below the surface many more exist. American Electric Power (AEP) 138 million The Southern Company 136 million Tennessee Valley Authority 108 million Oil, Globalization and Climate Change: How Free Trade, Mergers and Privatization Magnify Big Oil’s Power

n the early days of the oil Globalization supports the interests of transnational oil corporations in at industry, John D. Rockefeller least four key ways: became the richest and most • MERGER MANIA, which is sweeping the industry, is one way. This reviled man in America by consolidation is occurring as the big corporations attempt to increase Igaining a near monopoly on the their competitiveness in the world economy. It also represents a shift U.S. oil industry for his corpora- in power back toward Big Oil, as the former “seven sisters” attempt to tion, Standard Oil. Meanwhile in “unmake history,” in a sense reversing some of the break up of Asia, Royal Dutch and Shell Standard Oil which occurred nearly 90 years ago.39 Assuming regula- competed for dominance before tory approval, three of the four largest oil companies in the world will combining. The break up of be formed by recent mergers or acquisitions.40 Although there are still Standard Oil in 1911 led to the thousands of oil companies in the world, at the beginning of the 21st emergence of a larger group of still century a few supermajors will dominate the industry to an extent not very big companies known as the seen since Standard Oil’s heyday. Seven Sisters, though there were actually eight major players.36 For • STRUCTURAL ADJUSTMENT PROGRAMS, imposed by the much of the century, the Seven World Bank and IMF, are a second support for the oil transnationals. Sisters ruled the world’s oil industry. This, combined with the collapse of the former Soviet Union, has led But the dominance of the multina- to the widespread privatization of national oil companies. Oil privati- tionals was weakened by the forma- zation is a major piece of what author Daniel Yergin has called the tion of OPEC and the nationaliza- “greatest sale in the history of the world.”41 The big oil companies are tion of the oil industry in the 1970’s snapping up interests in these Third World and Eastern European 9 in the largest oil producing coun- companies (and their markets) left and right. For instance, Russia’s tries. Gazprom, just recently privatized, is now the single largest privately owned corporate contributor to climate change, responsible for more The largest oil producers in the than 4 percent of world carbon emissions. Shell and others have world today are still the national oil bought significant stakes in Gazprom.42 companies of Saudi Arabia, Iran, Venezuela and Mexico.37 The top Other state-owned oil companies have formed joint ventures with ten national oil companies control private sector companies. Mobil’s joint venture with PDVSA for some 70% of the world’s reserves.38 But now the pendu- lum of power is swinging back toward the Greenhouse Gangsters as they once again move to rule the industry. The swing of the pendulum is speed- ed by the process of corporate-led globalization.

Corporate-led global- ization is accelerating the pace of climate change. exploration in Venezuela’s human rights, labor or environ- Oil exploration is monumentally Orinoco Delta is one example.43 mental groups on this committee, expensive. Even with record low Chevron’s James Simpson believes and only one renewable energy oil prices, in 1998 the industry we will see more joint ventures, industry association. By contrast spent $88 billion in exploration.50 or even mergers, between the there are fourteen oil, gas, electric Prices rebounded in 1999, and multinational and national oil utility and mining companies and exploration budgets are likely to companies.44 industry associations on the com- soar even higher. Even Shell and mittee.46 These climate culprits BP agree, on paper, that renewables • FREE TRADE AND INVEST- are working hand in glove with are the wave of the future. Yet Big MENT AGREEMENTS and insti- the U.S. Trade Representative to Oil’s long-term strategy is still dic- tutions, such as NAFTA and the forge a new round of WTO nego- tated by the urge to explore. Why World Trade Organization ? tiations focusing on energy dereg- (WTO), are the third plank of Many oil executives seem to share ulation. Just as the WTO’s log- globalization that supports the oil the feeling that “without oil…civi- ging accord will increase defor- industry. For example, NAFTA— lization as we know it could not estation rates, thus undermining, the North American Free Trade exist.”51 Certainly their companies not only biological and cultural Agreement—promotes the oil could not exist, at least not without diversity, but also the role that industry over ecological sustain- a transformation. One traditional the world’s forests play in stabiliz- ability in two key ways. First, it measure of success for these compa- ing the global climate, an energy explicitly encourages governments nies is how well they replace pro- agreement will likely have the to subsidize oil and gas mega-proj- duction with new discoveries. This effect of accelerating destructive ects by exempting these subsidies brings pressure on the oil compa- global warming trends. from challenge as “unfair barriers to nies to look harder for more oil. trade.” Meanwhile, NAFTA gives The WTO can also be used to sti- Yet there is good reason for the no such protection to government fle countries’ efforts to comply oil companies to resist this logic support for energy efficiency, con- with the Kyoto climate treaty. and allow discoveries to lag 10 servation or alternatives—leaving For instance, the U.S. and the behind production. The reason is clean energy exposed to the whims European Union are threatening we have too much oil. This is true of NAFTA’s secretive, undemocratic to go after Japan’s new fuel effi- in the short term, as the glut of dispute resolution panels. Under ciency standards—rules that are 1998 and OPEC’s decision to cur- the guise of “free” trade, NAFTA designed to reduce carbon dioxide tail production in early 1999 also virtually eliminates countries’ emissions—as unfair barriers to showed. But it is also true in the ability to control the development trade.47 Government subsidies for long term. The scientists of the of their energy resources for export energy efficiency, “green” govern- Intergovernmental Panel on markets—in essence threatening to ment purchasing programs, and Climate Change (IPCC) estimate make Canada and Mexico virtual government labeling of goods that in order to stabilize CO “resource colonies” for the United whose production contributes to 2 concentrations at current levels States’ nearly insatiable energy climate change are all at risk of we would need to cut back on demand.45 being struck down by the WTO.48 carbon emissions by some 60%.52 Meanwhile the WTO is lowering • NEW FRONTIERS, including There is simply no way to do this barriers to trade and investment ecologically fragile areas, are without a massive cutback on around the world, and encourag- opened up to oil exploration by fossil fuel consumption and devel- ing the expansion of countries’ globalization. As free trade and opment of alternate energy. The increasing dependency on fossil investment accords tear down world’s proven oil and gas fuel based transportation, agricul- international economic barriers, reserves, if fully exploited, would tural and energy development. transnational corporations are far exceed the earth’s capacity to This creates ever expanding mar- rushing into a number of new absorb carbon emissions. In other kets for the oil industry. areas. The Greenhouse Gangsters words, it is impossible to safely are amassing cash to expand their burn even the fossil fuels we Of course, it is no coincidence reach to the developing countries already have, let alone those still that fossil fuel industry associa- of the South, to the remote rain- undiscovered.53 Yet the oil giants tions and corporations, including forests, to the deep sea, to the continue their expensive and Greenhouse Gangster Texaco forbidding Arctic, literally “to the destructive search for new oil and dominate the official U.S. govern- ends of the earth.”49 gas fields, even in some of the most ment trade advisory committee remote places on the planet. for energy issues. There are no This drive toward new oil explo- globalization fueling the “a first step towards arresting cli- ration has come up against a Greenhouse Gangsters’ expan- mate change.”55 movement for human and envi- sion by building a process of In sum, globalization has fos- ronmental rights. The oil indus- “grassroots globalization,” an tered the consolidation of the oil try has profound impacts not informal network of Indigenous industry in an ever smaller num- only on the global climate, but people, economic justice advo- ber of mega-corporations. It has on local ecology and the strug- cates, human rights defenders allowed these oil giants to buy gle for democracy. Currently, and environmental groups which up former state-owned compa- new exploration and oil or gas coordinate efforts to curtail nies. While through NAFTA, the pipelines continue to threaten destructive oil development. WTO and other accords, it has the survival of Indigenous peo- Recognizing that new oil explo- fostered a deregulation of trade ples in the Amazon basin, ration threatens both the global and investment which is provid- Southeast Asia, North America climate and local ecology and ing the oil industry with the and other centers of Indigenous culture, members of this network opportunity to continue to life. These people and their sup- have called publicly for a mora- expand its exploration and its porters have been actively resist- torium on new oil exploration.54 markets. As a result, globaliza- ing the encroachment of oil and As Nigerian human rights attor- tion increases the Greenhouse gas exploitation on their land. ney and activist Oronto Douglas Gangsters’ responsibility for cli- has put it, “a stoppage of oil Such movements are attemp- mate change, both in the United in the frontiers and fragile ting to combat the economic States and around the world. environments” can serve as

Part 2: The Corporate Response— The Five “Ds” 11

“There is now an effective consensus among the world’s leading scientists “D”s. These often overlapping tactics and serious and well-informed people outside the scientific community that and strategies form the core of the corporate response to environmental there is a discernable human influence on the climate, and a link between issues and are all on prominent dis- the concentration of carbon dioxide and the increase in temperature…The play in the global warming debate. time to consider the policy dimensions of climate change is not when the link between greenhouse gases and climate change is conclusively DENY “There is no harm to proven…but when the possibility cannot be discounted and is taken seri- human health or the ously by the society of which we are a part. We in BP have reached that environment.” Sound point.” —John Browne, CEO, British Petroleum56 familiar? This phrase is stock in trade for corporate spokes- he words of BP’s John vigorously enough, to play their people whenever there Browne sound reassuring, part in preventing climate change? is a release, spill, or especially coming from one To begin to answer these questions, accident of any kind. of the most influential exec- we invite you to study the reaction It is also the first reaction of manu- Tutives in the oil industry today. facturers to scientific or anecdotal of the climate culprits to the news of Surely they are a step forward from climate change, and compare it to evidence that their products are the total denial that climate change the behavior of other industries causing long-term damage. For is a problem, which has been issued faced with the conundrum of a example, DuPont, which was the by most oil executives until recent- product which provides profits but top manufacturer of chlorofluorocar- ly. But what do they mean in real also damages health and the envi- bons (CFCs) for most of the century, terms Has John Browne put his ? ronment. That behavior, typically, denied the connection between company’s money where his mouth can be summarized as: Deny, Delay, CFCs and ozone destruction for 14 is How about the other oil giants ? ? Divide, Dump, and Dupe—the Five years after that connection was first Will they act soon enough, and discovered.57 Only after evidence was so overwhelming that dissent effect, and must be able to replicate Convention was one of the most evaporated did DuPont finally results. In the real world, it is diffi- important international treaties on announce its own decision to cult to create the conditions to the table. The reaction of the oil phase-out CFCs. prove, beyond a scientific doubt, companies was predictable. Climate that a certain chemical causes a cer- change was not proven, the science In the case of leaded gasoline addi- tain ailment. “No proof of harm” is was not scientific, there was no tive, too, the industry which made not the same as “no harm.” The cause for alarm, etc. In short, full it fought tooth and nail against the industry understands this, yet they denial of the problem. phase-out despite evidence of use the scientific language of “no childhood An industry lobby group, the proof” to imply that there is no lead poison- Global Climate Coalition (GCC), cause and effect. Oil’s response ing, denying was formed to spread the notion that the Waiting for scientific proof is that global warming is a dangerous to global additive was morally wrong, because by defini- myth. Until recently, the GCC was the cause. tion the proof of cause and effect the main voice of the oil industry at warming is The asbestos comes after the damage is already climate negotiations and in key industry has done. The toy industry, in recent capital cities. Although other indus- classic: Deny, a similar his- years, kept vinyl toys on the try associations have formed with tory of shelves saying there was no proof more sophisticated positions, the Delay, Divide, denying the of connection between vinyl toys GCC continues to rely on the old Dump and Dupe connection and harm to health of children. But habit of inappropriately emphasiz- between parents understood that there was a ing the lack of proof.62 asbestos strong possibility of a problem. The This trick is still used by Mobil and products and cancer.58 companies agreed to phase out dan- others, who stress the lack of cer- gerous vinyl additives even though Currently, the chlorine industry as tainty as a reason to delay actions.63 advocates could not name a single a whole is still in the midst of 12 child who had been affected by the Currently, outright denial by the denial that its products are at the chemicals.61 Greenhouse Gangsters has weak- root of many of the world’s most ened a bit. For example, Shell and toxic and persistent chemicals.59 This principle of avoiding harm BP have left the GCC. They agree even when there is no absolute Typically, these industries use a sci- that actions should be taken even scientific certainty is the precau- entific sounding approach to bol- when there is scientific uncertainty. tionary approach. The precaution- ster their denials of harm. Most However these words have not ary approach is endorsed by many infamous in this regard is the translated into significant actions to international agreements, including tobacco industry, which claimed protect the climate. The U.S. the Rio Declaration, and even, in that there was no proven connec- majors, Exxon, Mobil, Chevron and theory, by Shell and BP. tion between smoking and lung Texaco are all still in the “deny” cancer despite the overwhelming Denial by the mode, stressing the uncertainty of evidence of such a connection. Greenhouse Gangsters the scientific studies as a reason to A former speechwriter in the auto delay action, while admitting there The theory of climate change due industry recalls the policy at is “concern.”64 to human activities became well- General Motors: “If we were known in 1988, when a scorching Exxon turns the precautionary princi- accused of contributing to air pollu- summer and other events brought ple on its head, comparing the sup- tion, we would simply say nothing environmental issues to the fore. It posed uncertainty of the science of had been proved.”60 was also the year of the first major climate change to the alleged certain- Strictly speaking, that was true. But international conference on climate ty of “serious adverse consequences what does it really mean? change. The meeting helped create for economic development and the IPCC, a large group of the growth around the world” if fossil The “no proof of harm” defense is a world’s best climate scientists. At fuel use is curtailed.65 This rhetorical misleading use of scientific sound- this conference, industrialized trick still sounds like precaution, but ing language. “No proof of harm” countries’ governments pledged to actually is an old-fashioned cost- may sound to the unsuspecting ear voluntarily cut CO emissions by benefit assertion. For Exxon, the like “there is no harm.” But that is 2 20% by the year 2005. economic disruptions of climate not what the scientist means. In the protection are more costly than the laboratory, to prove a hypothesis, By the time of the Rio Earth benefits of climate protection. the scientist must prove cause and Summit in 1992, the Climate DELAY brilliantly, having already estab- Delay is self-perpetuating. Mobil lished a dominant market share for notes that the 7% carbon cuts In the case of lead fuel additive, CFC replacements like HCFC 31, between 2008 and 2012 which the asbestos and CFCs, eventually the even as they were wringing the last U.S. would require under the evidence profits out of CFCs. DuPont flour- Kyoto Protocol really represent became ished during the phase-out of CFCs 41% cuts, because the 7% are so over- by delaying it long enough to plan below 1990 levels. It uses the 41% power- its own dominance of replacement figure to frighten the public into ing, and chemicals. thinking that affluence and modern society convenience are at stake. Mobil so over- Delay by the does not mention that its own whelm- Greenhouse Gangsters denials and delays are part of the ingly in Delay is also an important tactic for reason that carbon emissions are favor of the Greenhouse Gangsters. Mobil still growing in the U.S. Its own phase- laid its cards on the table in a series policies are part of the reason that out, that of ads just before and after the the relatively modest 7% goal will the Kyoto meeting in December 1997. be more difficult to reach.67 industry On the op-ed page of The New York was Here it is also interesting to note Times, Mobil emphasizes the “high forced the role of BP and Shell, the two degree of uncertainty” over the to abandon their denials, or the Greenhouse Gangsters that have impact of human carbon emissions. denials were simply ignored. Once admitted that climate change is a It says we “don’t know enough denial has been abandoned, the serious problem. These companies about global warming;” it scares us industry puts more of its effort into have stated that precautionary with predictions of job loss and delay. action is appropriate to the situa- “difficult choices” for Americans, tion; that is, carbon emissions The delay strategy relies a great such as “How much prosperity are should be reduced even though 13 deal on the value to society of the Americans willing to forgo?” and they believe there is no scientific product in question. Issues of jobs, “How much more tax will they certainty that human activities are convenience, and consumer prices have to pay?” It warns that the causing harmful climate change. are brought in to show that there Protocol could put “the U.S. at a They have received positive atten- will be a downside to the phase- disadvantage.” And it claims that tion for these statements, and for a out. In this way the public is divid- actions to prevent climate change stated commitment to investment ed—workers against environmen- “could wreak havoc on nations.” in solar energy. talists, people adversely affected This is the set up. Mobil then versus those who gain convenience, advises us not to take any “quick- Shell and BP, as European-based rich versus poor—and momentum fix” measures, and to “Stop, look companies, were quicker to under- for phase-out is temporarily slowed. and listen before we leap.” In other stand the meaning of a precaution- All of these products are useful to words, delay.66 ary approach, and quicker to at least one constituency, and their include it in their rhetoric. In their To implement the delay, the entire replacements are generally less home countries, where climate strategic arsenal is on display. proven. Users and consumers are change has become a big issue, Contributions to right wing legisla- scared into thinking that their the political climate encourages tors; alliances with other industries refrigerators or cars will not work, such political positioning. But these such as the auto industry and with and begin to support a gradual sun- companies’ relatively minor efforts some labor unions such as the setting of a product rather than an to promote alternative energy may, United Mine Workers of America; immediate ban. more than anything else, help lobbying for U.S. rejection of the alleviate the growing political The latest possible phase-out date Kyoto Protocol, even after weaken- pressure on them, serving to delay is sought, so that the maximum use ing it by calling for late action; the real measures to address global can be made of equipment and formation of the Global Climate warming. technology which already repre- Coalition and other lobby groups sents investment for the firms. which are very active at the climate What’s more, Shell and BP are Meanwhile, the firms work feverish- negotiations—these are all aimed at content to allow the American ly to control the market in the suc- delaying changes. Petroleum Institute do their dirty cessor products. DuPont did this work for them. API continues its role in denying the problem of climate change and delaying solu- and undermine technology innova- it must go to avoid and delay tions.68 In doing so, API represents tion. Emissions trading schemes do making actual reductions in our both BP Amoco and Shell Oil. The not address the local polluting dependence on fossil fuels and our positions of the more reactionary effects of carbon emitting facilities emissions of carbon. The emissions companies like Exxon, and of indus- like refineries, and therefore can trading system allows the least try associations like API, allow exacerbate environmental racism challenge to the power of the Shell and BP to sound progressive both within the U.S. and across Greenhouse Gangsters and their and environmentalist without hav- borders. And the allies, while under- ing to make substantial changes to trading system puts mining the creation their business plans. Or, as The Wall southern countries of real solutions to Street Journal puts it, “oil companies at a disadvantage climate change. play on both sides of the global when they begin warming debate.”69 making carbon cuts, DIVIDE since the easiest Pollution Trading— In fighting envi- cuts will have ronmental regula- Another Way to Delay already been pur- tion, corporations To prevent climate change, reduc- chased and credited do not merely ing fossil fuel use is the crux of the to northern coun- advocate delay, matter. Yet the U.S. government tries.70 but bring out the and industry have gone to great Even some climate entire arsenal of lengths to come up with schemes to science skeptics tactics to effect avoid or delay doing just that while such as Jack Kemp the delay. Among still getting credit for carbon reduc- realize that emissions trading is “a the most important of these tactics tions. These schemes are based on cynical bargain between big busi- is to DIVIDE the opposition. the principle of emissions trading. ness and the Federal Government” Perhaps the most important divi- 14 In its broadest sense, trading takes which will “divide the business sion exploited by business in the several forms, which are known as community between winners…and last 30 years has been between the Flexible Mechanisms under the losers, who will face the full brunt environment and labor movements. Kyoto Protocol. These include of any emissions controls.”71 From the infamous spotted owl ver- sus lumberjacks debate in the Joint Implementation and the Clean The Greenhouse Gangsters are by Development Mechanism (CDM). Pacific Northwest to the closing of no means the only proponents of chemical plants, jobs versus envi- Joint Implementation allows the emissions trading as a solution to industrialized countries to buy the ronment is the traditional wedge climate change. It is supported by for business. credit for another country’s reduc- some environment groups such as tions rather than having to reduce Environmental Defense Fund and Some environment and labor advo- emissions at the source. The CDM Union of Concerned Scientists. But cates believe this wedge is becom- allows the industrialized countries to an extent, this support reflects ing even more powerful, due to ris- to avoid domestic reductions in the realpolitik of climate change. It ing job insecurity.73 exchange for participating in devel- presupposes that we cannot force Greenhouse Gloom and Doom oping country projects which would the fossil fuel industry to change if produce lower emissions than other- we cannot make it profitable to do In the case of global warming, the wise would have been emitted. For so, and this assumption is based on threat of job loss and other eco- example, the U.S. could buy “credit” the knowledge of the industry’s nomic forecasts of doom have been for carbon absorbed by carbon tremendous power. Questions of an effective way to divide critics of “sinks,” like forests, in the South, or justice and fairness become second- the fossil fuel industry. In the U.S., for global warming gas reductions in ary in the realpolitik calculation. the economic doom forecast by the the former Soviet Union, where Trading schemes, as one columnist industry should the Kyoto Protocol economic downturn is causing puts it, provide a “pretense of move forward has successfully reductions anyway. action to the public while giving divided environmentalists from at Experience with emissions trading winking assurance to industry that least a portion of the labor commu- in air pollution has shown that the status quo is not disturbed.”72 nity, despite that fact that workers have not fared well at the hands of pollution trading can create phan- The embrace of emissions trading as a tom reductions, reward the worst the fossil fuel industry, and despite solution reflects the desperate lengths efforts by the AFL-CIO to keep historical polluters, promote fraud, to which the U.S. government feels open a dialogue between the labor and environmental movements.74 Job loss in the U.S. has been the most effective scare tactic industry has used in opposing climate pro- tection in general and the Kyoto treaty in particular. Let’s look at those claims. According to the American Petroleum Institute (API), the oil industry employs nearly 1.5 million people in the U.S.75 API, whose members include all the major oil companies, has actively raised the specter of job loss due to the Kyoto Protocol.76 In 1997, a study by the Wharton Econometric Forecasting Associates forecast wildly gloomy conse- Again, a gloom and doom scenario. Big oil’s rush to profits comes at the quences if the U.S. were to sign the The tone of these studies and ads expense of jobs, community health Kyoto Treaty. These included the implies that the industry is just fine loss of 2.4 million jobs, $300 billion as it is, and the Kyoto Protocol is and the environment—their tactic is in GDP, and an average loss of the main threat to its health. In to play these groups against one $2,700 per household.77 The study reality, the fossil fuel industry is another. was cited by the American already shedding jobs, without 15 Petroleum Institute, Mobil and influence from the Kyoto Protocol. other companies as evidence of the ARCO acquisition, BP Amoco had hardships combating climate In the U.S., the Bureau of Labor already laid off 400 Alaska change will bring. Statistics calculates that from 1990 —1996, oil and gas extraction lost workers.85 In January the company The Economic Policy Institute 76,000 jobs net. According to the announced a loss of 900 jobs in examined the study and found the Bureau, between Oct. 1997 and Britain and in February 1,500 authors had included portions of March 1999, 52,000 jobs—some Chicago area jobs.86 The Exxon the Kyoto Protocol which were not 15% of the workforce—were lost in Mobil merger will involve at least agreed to and made other unduly oil and gas production alone, and 9,000 jobs lost.87 And Exxon has pessimistic assumptions.78 The many will not be replaced. Exxon already been cutting jobs at the rate National Environmental Trust dis- chief Lee Raymond says 450,000 oil of 4% annually for over a decade.88 covered connections between jobs were lost between 1981 and Neither climate change nor the Wharton and the GCC, API, Shell 1996, though he blames U.S. envi- Kyoto Protocol are a current cause and Texaco. API funded the study.79 81 ronmental regulations for the loss. of job loss in the fossil fuel indus- API also co-sponsored a study by Many of the job losses are among try. Rather, management’s own Ronald Sutherland, which con- the small producers, who are hard- plans for mergers and other restruc- 82 cludes that the Kyoto Protocol est hit by low prices. turing to maximize competitiveness would cost Americans thousands of But giant oil companies are and profit, are the main forces jobs—23,000 in the aluminum cutting jobs as well behind job loss in the industry. industry alone, 5,800 in the cement The predicted future losses are also industry, 7,500 to 75,000 in the The Oil and Gas Journal believes that misleading. The API studies and chemical industry, and thousands most of the 51,500 oil jobs lost from related advertising campaigns more in steel, paper and petroleum December 1997 to February 1999 83 assume that the Kyoto Protocol will refining. The study says that the were layoffs at large companies. BP be signed without policies to miti- jobs would migrate overseas, to Amoco’s purchase of Arco will lead gate the job loss. That is a prepos- countries with less stringent com- to approximately 2,000 jobs lost, 84 terous assumption, and there are mitments under Kyoto.80 mostly in California. Two months before the announcement of the many policies available. The Sutherland study asserted that policies favoring new technologies of lead additive plants and refiner- jobs in the steel, paper, cement and could not only reduce carbon ies (some of which closed rather refining industries would migrate to emissions and other pollutants, but than upgrade) cost 7,670 jobs.93 developing countries with less strin- also “cut energy costs, increase For some of the families of these gent Kyoto commitments. It is true, employment… [and] reduce net workers, the layoffs were no doubt 91 though reprehensible, that some of costs by $530 per household.” a severe hardship. Yet who would the dirtiest industries have migrated argue that another entire genera- to developing countries when Economic Extortion and Job Fear or Just Transition? tion of children should risk the health and safety regulations make nightmare of lead poisoning to pro- In the long run, jobs will be dis- it more difficult or more expensive tect these jobs? Who would tell a placed as the fossil fuel industry is to operate in the U.S. mother in New York City or gradually phased out. Unless some- But ironically, it is these industries, Oakland that her child must thing unexpected happens to including the members of API, breathe additional lead because a reverse the trend of global warm- which support the ability of U.S. job must be protected at all costs? ing, this is as inevitable and desir- companies to freely move wherever able as the phase-out of leaded It is entirely understandable that on earth they wish. Instead of argu- gasoline, CFCs, and asbestos. The each generation of workers will ing for some control on the export sooner we plan for the transition, fight to protect its jobs. But indus- of polluting and hazardous indus- the better off workers and environ- tries will continue to transform, tries to the South, they now argue ment will be. mostly due to changing markets or that we can’t afford regulations technologies, but also sometimes The phase-out of leaded fuel is a because industry will leave. as a response to social or environ- fascinating precedent, and one The argument is disingenuous is mental issues. When these changes which we must avoid repeating. another way. Even without regula- cost jobs, the response should be Lead was added to gasoline starting tions which directly restrict migra- not to protect jobs in dirty indus- in 1924 to boost octane. By the tion of dirty industries, there are tries indefinitely but to provide a 16 1970’s scientists discovered that ways to prevent the loss of these JUST TRANSITION. Such support this was a monumental mistake. jobs. A carbon tax on imported car- needs to be both for workers who Leaded fuel was the biggest source bon intensive goods is one way. A lose their jobs, and the communities of global lead contam- border adjustment is another way. ination and millions With border adjustments, the tax of children had been on fuel, for example, is based on poisoned by lead, the place of consumption, not pro- causing loss of intel- duction. Therefore, there is no ligence, behavioral incentive to move production over- problems and neuro- seas. Border adjustments are already logical problems. commonly used and are compatible Starting in 1975, with international trade rules. For lead was phased out example, ozone depleting chemi- of gasoline.92 cals are taxed in this way.89 When industry tries to scare us about job DuPont, Ethyl and loss if we take action to prevent other lead additive global warming, they are deliber- producers warned ately ignoring these policies. that thousands of jobs would be lost The Greenhouse Gangsters are also as a result of the ignoring the employment benefits of phase-out. They cutting greenhouse gas emissions. were not crying Researchers looking at solar and wolf. The closure wind power, micro-energy and low/no-emission vehicles have con- cluded that the Kyoto Protocol Fossil fuel “would create more winners than corporations are losers” through low energy prices and job creation.90 One detailed misleading the American public report shows how market-based by playing off their fears and blaming the “Third World” that are left dealing with the environmental and THE BLAME GAME: GLOBAL WARMING & GLOBAL EQUITY economic consequences of a toxic industry How should actions to prevent climate change be shared among the countries of the departing as a result of regulations which benefit world? There are many ways to look at the question, and the answer, inevitably, is the wider society. political. A common sense approach to equity, or fairness, includes the following factors:97 The Oil, Chemical and Atomic Workers Union, which has since merged with the Paperworkers • historical emissions International to form PACE, has demanded the • current and future emissions creation of a National Just Transition Fund “to provide full income protection, access to sus- • per capita emissions tainable jobs and education for workers in toxic • ability to reduce emissions without hardship to population industries, and economic support for impacted communities.”94 PACE is working with the The Kyoto Protocol, which so outrages big oil, says that the U.S., Western Europe Southwest Network for Environmental and and other industrialized countries must reduce their carbon emissions by various Economic Justice and other environmental jus- amounts by the year 2010. Developing country commitments will come later. Is this tice organizations to build a Just Transition really so unreasonable? Consortium that organizes workers and fence- One measure of how to require actions would be historical responsibility. In other line communities through training and dialogue words, how much total carbon a given country has emitted in the past is one indica- (see p. 25). Meanwhile, in Canada, the tion of their responsibility. By this criterion, the United States has by far the largest

Chemical, Energy and Paperworkers Union has contribution to total CO2 emissions. Despite having smaller population, the U.S. has not only made Just Transition its policy, but is emitted about three times more CO2 since 1950 than the Soviet Union/Russia or 98 working nationally to make it a legislative ini- China. The industrialized world as a whole accounts for about 80% of CO2 emis- tiative across the country. sions historically.99

API and its members, which cry so loudly about In current emissions, the U.S. also has by far the highest of any country in the job loss due to the Kyoto Protocol, are mainly world. Moreover, U.S. emissions are still growing, with an increase of 11% between silent about their workers’ call for Just Transition. 1990 and the year 2000. With the exception of Germany and the UK, all the major

Industry’s concern about job loss due to the emitters whose CO2 emissions decreased were in the former East bloc; the decrease Kyoto Protocol or other means of reducing fossil was due to economic stagnation rather than improved efficiency or development of fuel use rings hollow when it routinely slashes alternative fuels.100 jobs to increase profits. Its failure to develop plans for a Just Transition is another way the On a per capita basis, the U.S. contribution is even more skewed. On average a U.S. Greenhouse Gangsters hang on to their fossil fuel citizen emits about 120 pounds of greenhouse gases per day, about twice as much business at the expense of the planet’s health. as the average for other wealthy countries like France, Germany or Japan. With just four per cent of the world’s population, the U.S. emits about one-fourth of the North vs. South world’s greenhouse gases.101 The average greenhouse gas emissions of a U.S. citizen How to cut greenhouse gas emissions in a way are equal to 25 Indians, 33 Pakistanis, 125 Bangladeshis, or 500 Nepalese.102 that is fair to all countries is the most con- Worse still, U.S. energy consumption is still growing, largely as a result of more driv- tentious issue at the Kyoto Protocol negotia- ing, bigger cars, bigger houses and appliances, and lack of efficiency measures by tions. This reflects both the real complexity of industry.103 the issue and the mutual suspicion between so called developed and developing countries in In addition, the U.S. has the strongest economy in the world, and one of the high- international politics. est rates of CO2 emissions per unit of GDP. By any interpretation of equity, the U.S. should double, triple or quadruple the reductions of almost all other large countries, The Greenhouse Gangsters have used this emo- even the wealthiest nations of Western Europe. Neither the Kyoto Protocol nor any tionally and politically charged issue to slow other forum has dared to suggest this, however. down, weaken or derail progress toward CO2 reductions. Fossil fuel corporations have used If one were to take into account emissions created by US corporations operating in jingoism and xenophobia cleverly to divide the the developing world, the responsibility of the US is greater still. international public on the issue. The main And what about China and India? If we look at the four criteria for common sense theme is the need for developing countries to fairness above, we see that these countries fit just one of the four. They are not cut carbon emissions. major historical contributors, they have relatively low per capita emissions, and The petroleum industry has insisted that the their widespread poverty makes it difficult to reduce emissions while improving the Kyoto Protocol is unfair because no action is standard of living. But in simple numerical terms, it is true that China, India, Brazil required of developing countries. Its campaign and a few other developing countries must become part of the solution if climate has worked, as its position has been echoed in change is to be prevented. As we have already seen, the oil companies, along with the U.S. Senate and casts a shadow over the the international financial institutions, nevertheless are pushing the development of fossil fuel based economies on these countries. climate negotiations.95 The indus- In one especially heinous case, the exports go to the developing try has deliberately focused on this Shell and other companies manu- world, where people are still rou- issue because it plays to the most factured a pesticide for export to tinely exposed to the misery of jingoistic and racist side of the U.S. Central America even after its use asbestos diseases.107 public, to the unsubstantiated but was banned in the U.S. because it The chlorine industry and its satel- nagging belief that the masses of caused sterilization in men.104 lite industries like pulp, paper and China and India are the real envi- But in many cases, the expansion of PVC plastic are expanding most ronmental problem, to the fear that a dirty industry proceeds well before rapidly in Asia and Latin America the United Nations is picking on regulations clip its wings at home. as the environmental consequence the American people, their free- of chlorine chemistry has become dom, their lifestyle.96 The tobacco industry is one of the understood in Europe and North best examples of an industry which The justification for this position is America.108 first denied scientific proof, then that in approximately 2015, accord- delayed restriction at home, and Since most technologies and prod- ing to the International Energy then dumped its product on the rest ucts which spread globally are first Agency, carbon emissions from of the world. As massive public invented in the North, this is the developing countries as a group will education campaigns and the litiga- standard pattern. It is a pattern exceed those of industrialized coun- tion by State Attorneys General which has become even more pro- tries. Yet this projection is just one finally brought an end to growth nounced as the rules of the global side of the story, and does not mean for tobacco in the U.S., the tobacco economy facilitate the export of that all countries must make the companies were busy building their dirty industry and discourage same commitments. The corpora- markets overseas. They enlisted the national governments from prevent- tions know this. In truth, their posi- United States Trade Represen- ing import of environmentally dam- tion is really an attempt to weaken tative’s help in opening markets. aging products and technologies. or derail the treaty altogether. And they kept health warnings Dumping by the Greenhouse 18 The oil industry downplays the off cigarettes for export, even obvious fact—understood by every- when such warnings were required Gangsters (aka: Globalize, one outside the United States—that in the U.S. Globalize, Globalize) carbon emission cuts must come The strategy worked. Philip Morris Chevron said it well in its 1992 from the U.S., which puts out 24% and RJ Reynolds, the two leading Annual Report. “Attractive opportu- of all greenhouse gasses, making it U.S. companies, now sell nearly 2/3 nities overseas combined with the single largest contributor to cli- of their cigarettes and earn nearly limited business opportunities in mate change. This divisive theme half their profits abroad.105 the U.S. due to stringent regulatory leads to misplaced outrage among barriers, drilling bans and a dwin- some Americans at developing It worked for DuPont and Ethyl as dling number of high-potential countries. This is juxtaposed with well. They continued profiting from exploration opportunities have the outrage felt by much of the export of lead fuel additive to the resulted in a shift in investment world at massive overconsumption developing world well after its role in emphasis.”109 in the U.S. With people from indus- causing childhood lead poisoning was trialized countries and developing understood and its use was phased- Despite some differences, the expan- countries blaming each other and out in the U.S. and Canada.106 sion of the fossil fuel industry in the South has a lot in common with the misunderstanding their relative Canada, the second largest produc- responsibilities and roles, the oil classic dumping practices of tobacco, er of asbestos in the world, exports asbestos and lead industries. industry no doubt feels less threat- nearly all of it, since asbestos is ened than it would in a world unit- virtually banned in Canada. Most of Most governments agree that, des- ed to reduce fossil fuel use. pite the squeals of the U.S. right wing, the developing world should DUMP be given more time before they are When a corporation sees the writ- required to cut back on CO2 emis- ing on the wall, when its home sions. During that time, developing country has at last banned its countries will be a growth market product, it may have already for oil and gas. So the oil giants, made arrangements to protect along with many of the smaller profits by dumping the product brethren, are tripping over each in the developing world. other to claim concessions in these countries. An oil concession map capacity to carry 225,000 barrels of The Greenhouse Gangsters should of the Amazon basin of South Amer- crude per day for a period of 25–30 be telling the world the truth. It is ica or West Africa looks like a who’s years.113 the U.S.—its government, people who of international oil companies. and, perhaps most of all, its corpo- It is one thing to invest millions in Massive areas of Peru, Venezuela, rations—which must take the lead growing a carbon-based economy in Bolivia, Colombia and Ecuador are role if disastrous climate change is the developing countries, but given over to these companies by to be prevented. another to insist simul- governments in the process of eco- taneously that these nomic liberalization.110 countries must plan to DUPE The process of globalization, sup- cut carbon emissions. Since the late 1980’s, ported and pushed by these same The Rio Earth Summit industry has become corporations, opens the economies established the princi- increasingly con- up to these companies. These coun- ple that industrialized cerned and sophisti- tries become as dependent on fossil and developing coun- cated about environ- fuels, both for foreign exchange tries have “common but mental issues. and for domestic consumption, as differentiated responsi- Whether the concern any industrialized country. bilities.”114 This princi- is mainly for the envi- ple guides the Kyoto ronment or for their Hydrocarbon Hypocrisy treaty as well. It is an public image is a mat- The industrialized world and its accepted part of the ter of heated debate. corporations are driving the devel- international approach Some companies and oping world toward replicating the to environmental issues. The oil business groups do not even distin- energy model which causes global giants are well aware of this. guish between the two rationales.116 warming, and supporting massive In any case, business has moved Yet the oil companies have allowed new fossil fuel projects for the aggressively to control the terms of their public relations departments, South. This being the case, it is the environmental debate, by 19 trade associations, front groups and remarkable that the same forces are co-opting and distorting environ- right-wing politicians to do the crying out that the developing mental language, by forming envi- dirty work of stigmatizing China, world must reduce CO emissions ronmental departments and giving 2 India, and other developing coun- under the Kyoto Protocol. speeches about the importance of tries to the U.S. public. The United environment for good business, by Exxon chief Lee Raymond, for Nations and environmental creating corporate sponsored “envi- example, reminded an audience in “extremists,” like Al Gore, are demo- ronmental” groups, by allying with China of “the need to maintain and, nized for allowing these countries a mainstream non-governmental if possible, increase local production different timetable for adjusting organizations, by investing in and reserves [of oil]…” He went on their economies to the reality of small-scale projects which are envi- to explain that “excluding develop- climate change. ronmentally friendly and distract ing countries from the reductions [of the Kyoto Protocol] will not prevent them from being hurt. Their exports will suffer as the economies of THE WORLD BANK’S CLIMATE HYPOCRISY 111 industrialized nations slow.” Researchers have documented that the World Bank and other international financial institu- As already noted, the oil majors tions have a similar Climate Hypocrisy policy. Rather than assisting developing countries in are highly transnationalized phasing out fossil fuels, the Banks are lending millions of dollars a year for new fossil fuel companies and their petroleum projects. These projects include coal-fired power plants in China and India, the most carbon activities extend to dozens of coun- intensive energy sources available. The researchers found that the projects enriched Amoco, tries in Africa, Latin America and Exxon, Chevron and Mobil, among other western companies. Asia. They are proud of their role World Bank projects financed since 1992 will produce 37.9 billion tons of carbon, more than as major driving forces behind the a year’s worth of total carbon emissions for the whole world. U.S. export credit and insur- growth of the fossil fuel industries ance agencies, the Export Import Bank and the Overseas Private Investment Corporation, 112 in the South. To name just one have underwritten $23.2 billion in financing for fossil fuel projects around the world—proj- notorious example, Exxon and Shell ects which will emit 25.5 billion tons of CO2 over their lifetimes. Yet when China recently are part of the consortium planning announced a $23 million investment in solar energy, no international financial institution the controversial Chad Cameroon supported it.115 gas pipeline, which will have the from the destructive nature of their of Peru. If Mobil’s ad is to be be- emissions by 10% by the year core business, and by “posing as lieved, Conservation International’s 2010.124 In March, 1999, BP bought friends of the environment and collaboration in this unnecessary Solarex for $45 million, making it leaders in the struggle to eradicate and destructive project has been the largest solar company in the poverty.”67 secured.121 world. And on March 13th, John Browne announced that BP Amoco The largest petroleum, chemical, Shell has its “Profits or Principles” would install solar panels in 200 nuclear and mining companies have philosophy which indicates that it gas stations around the world. spent hundreds of millions of dol- does not need to choose between lars trying to convince the public profits and principles but can satisfy It’s not that there’s anything intrin- that they are the leaders in environ- everyone. A recent ad, replete with sically wrong with these initiatives. mental protection and our allies in the predictably exuberant green Its just that they pale in compari- promoting sustainable development foliage behind the company logo, son to the aggressive consolidation and human rights. Some of the claims Shell is “focusing [its] ener- of power and commitment to fossil most notorious names in environ- gies on developing [renewable ener- fuels in which the company has mental history—DuPont, Dow, gy] solutions”122 even while its been engaged. For BP, being the Sandoz, Monsanto, Shell, Exxon— Annual Reports document fossil fuel world’s largest solar company is not have promoted themselves as envi- growth and provide maps graphical- difficult. The $45 million spent on ronmentally concerned leaders. The ly demonstrating the astounding Solarex, is a mere fraction of the phenomenon of environmental global reach of its oil and gas explo- $400 million in transfer taxes asso- image advertising and other envi- ration and production operations.123 ciated with the purchase of ARCO, ronmentally oriented PR programs which cost $26.5 billion.125 In 1999, British Petroleum one- has been dubbed “greenwash.”118 upped its competitors in the green- The company’s dramatic move to Greenhouse Greenwash wash sweepstakes. Chairman John acquire Arco in 1999 was aimed at Browne laid the groundwork with strengthening its gasoline market- The Greenhouse Gangsters, some his endorsement of the precaution- ing position in the U.S., and gives 20 of which were pioneers of green- ary principle and recognition that it control over all Alaskan oil wash in the 1980’s, indulge in un- BP needs to take into account the exploration. In Alaska alone, BP healthy doses of climate greenwash. views of the society in which it Chevron has its “People Do” adver- operates. Then came a commit- tising campaign.119 ment to reduce BP’s own Exxon has its “Save the Tiger Fund,” which asso- ciates its logo with the endangered tiger.120 Mobil has its unc- tuous op-ed page ads every Thursday in The New York Times. In May 1999, Mobil boasted of how it overcame Conservation International’s alarm at plans to develop oil in the sensitive Tambopata rainforest

Going green or greenwashing? BP bought itself the world’s largest solar company for $45 mil- lion. Meanwhile it plans to spend $5 billion on more oil exploration and production. Amoco will spend $5 billion in the fossil fuel path which is leading to renewable energy. In 1973, geother- next five years on oil exploration catastrophic climate change. The mal, wind, and solar accounted for and production.126 The implication endorsement of the precautionary 0.1% of world energy supply. In is clear: BP Amoco is committed, approach and the miniscule solar 1996, renewables accounted for a over the long term, to continued investments don’t change the basic mere 0.4% of world energy supply. reliance on oil and gas. facts. BP Amoco is part of green- During that same period, oil house greenwash, an attempt to declined in terms of dominance of The merger with Amoco and the dupe the public into leaving the oil fuel supply, from 44.9% to 35.3%, purchase of Arco put John Browne companies to regulate themselves. though it is still the biggest source. at the helm of the largest fossil fuel But this decline was replaced largely company in the world. The pursuit In reality, over time, the Green- with natural gas, which contributes of oil in Alaska and in the Arctic house Gangsters have not used their equally to global warming, and are perfect examples of following a power for significant development of nuclear power.127

HYDROCARBONS AND militarization of the area, which has from the presence of Occidental HUMAN RIGHTS resulted in forced relocation, forced Petroleum.” This laugher specifically labor, rape and summary executions by mentions the sinking of 10 freshwater “Speaking of human rights in the the military regime. Unocal joins Shell, wells along three Rivers in northeastern [Amazonian] oil producing regions Texaco and Chevron in the dubious dis- Peru which are known for their contami- is like speaking a language from tinction of being sued for its role in nation by crude oil from Oxy’s opera- these abuses.131 tions. Oxy also has the gall to include its 128 another planet.” contribution to education in Colombia, In Colombia, a former oil engineer says —Paulina Garzon, Center for Economic where it threatens to begin oil activities “it is inarguable that the arrival of the in sacred U’wa land. The 5,000 U’wa peo- and Social Rights, Quito, Ecuador petroleum industry to any region of the ple have threatened to commit mass sui- 21 country immediately worsens the condi- Oil development has been at the center cide if Oxy proceeds. of human rights abuses around the globe tions of the population. One only has to for decades, and the companies have look at a map to see that the regions of In this document we discover that BP come under withering attacks for their violent conflict and human rights viola- joined with WWF in bringing environmen- roles. tions coincide with the regions of natural tal education into the school curriculum resource exploitation, particularly petrole- in China. We may be surprised to learn In Ecuador, Texaco dominated the oil um.”132 Despite this record, environmen- that Shell has “consistently called for fair industry for decades and the pollution tal protection is not the only cause the trials and humane treatment for prison- from their operations affected an esti- Greenhouse Gangsters have belatedly ers” in Nigeria, where the military gov- mated 30,000 Amazonian Indians and adopted in the last few years. The oil ernment executed Ken Saro-Wiwa and farmers. Their health, their ability to giants are now promoting themselves as eight other Ogoni activists for agitating grow food, their land, in short, their human rights champions as well. against Shell. Perhaps we’re shocked to entire lives, were affected. These oil vic- find out that Unocal has “improve[d] Incredibly, the oil industry is proud of its tims are plaintiffs in a lawsuit against living conditions in the Yadana region of human rights record. Shell and Unocal, for Texaco for damage to their land and Myanmar [Burma],” where, as even UNO- example, both include the Universal health.129 CAL President John Imle has admitted, Declaration of Human Rights on their web- forced labor has been used to build the In Nigeria, Shell’s role in propping up sites and Shell discusses why it is commit- company’s pipeline. the military dictatorship became notori- ted to human rights. ous because of the execution of Ken Evidently, Exxon had to dig deep to find The American Petroleum Institute offers Saro-Wiwa and the suppression of dissent something to include here. It joined with a 12-page dossier: “Oil and Natural Gas by the Ogoni people. In 1998, Chevron the government of Colombia to form a Industry Promotes Human Rights played a similar role, providing transport nonprofit organization to promote eco- Abroad.” The Institute concludes that for military personnel who killed Ijaw nomic development. It has helped “to “Wherever they are engaged, American youth who were protesting at oil installa- promote capitalism among young people petroleum companies…provide powerful tions. Shell and Chevron are also being in Russia.” Quite believable. And finally, support for humanitarian activities.” sued in U.S. courts for these violations.130 a bit of unintended, though welcome, In Burma, California-based Unocal’s The compendium includes claims such as: honesty: “Exxon is committed to helping Yadana pipeline is the cause of massive “Peru has benefited in a number of ways its advertising icon [the tiger].” Part 3: Climate Justice

for the climate, like all ecological protection, is inseparable from the struggle for democracy, for freedom, and for justice.” —Ka Hsaw Wa, Burmese Activist,

“ 133 Respect EarthRights International

he petroleum industry is accounts for 10% of all carbon giants would like us to believe they going through the biggest emissions. If we include their role have become allies in the quests for restructuring since the oil in refining and marketing, their environmental protection, sustain- embargo of 1973. At the contribution to climate change is able development and human Tstart of the 21st century, a few higher. Their power in Washington rights. These corporations have super-giant oil companies will be and other capitals is difficult to adopted, to varying degrees, the moving toward re-establishing their resist, and that power is magnified rhetoric of scientists and environ- dominance over one of the world’s by a collective political strategy. mentalists concerned about climate most strategic industries. The globalization dynamic they change. They promote their human have forged further expands their rights and environmental records. As we have seen, fossil fuel produc- reach and impact. This collection They would like us to believe that tion by just five corporations of power dwarfs the influence of they understand the problem better 22 the individual to affect change than anyone, and are in the best Secoya demonstrators in Ecuador: “Gas through lifestyle choices. position to balance scientific, prices rise and my rainforest cries.” technological, environmental and As the saying goes, with power economic considerations when People around the world are fighting comes responsibility. How has the finding solutions. the Greenhouse Gangsters for survival. industry handled its power? The oil Reality, however, is a different story. On the ground, the Greenhouse Gangsters are egregious viola- tors of human rights and envi- ronmental stan- dards. The oil companies’ exploration and extraction of oil has destroyed rainforests and polluted Indig- enous lands. Their oil boom- towns have torn the social fabric and introduced disease to Indigenous and peasant communities. Their oil sep- justice go hand in hand. The best of government, through their aration stations have dumped con- solutions to climate change will not unabashed promotion of the glob- taminated wastewater in rainforest only reverse global warming. They alization agenda, through their and farmland. Their hellish gas will protect jobs and incomes, control of the mainstream media flares light up the night. Their improve respect for human rights, and their advertising power, con- pipelines reduce inequality tinue to undermine democratic and oil between and institutions nationally and interna- tankers have Climate Justice within nations, tionally. By creating a global sys- spilled bil- improve the local tem of corporate rule where the lions of bar- places environ- environment in bottom line reigns supreme, these rels of oil, many places, and companies—the Greenhouse causing mental, labor and reduce our Gangsters central among them— toxic con- dependence on a attempt to insulate themselves tamination. human rights at few large corpo- from the values of human, labor Their the center of the rations for our and environmental rights. refineries, daily energy A movement for Climate Justice often locat- needs. Or, as movement to must join with other organized efforts ed in low- Esperanza to strive to reverse this dynamic. It income Martinez, coordi- reverse global must make human rights, labor communi- nator of the glob- rights and the environment the ties, have warming al, Ecuador-based guiding forces for local, national and polluted the Oil Watch net- international politics and economics. air and work, puts it: If we are to halt global warming water, while poisoning workers. “the sum of local experiences…will while addressing the other negative Their host communities often help us resist the causes of climate impacts of the Greenhouse remain impoverished, despite the change.”135 Gangsters and their cohorts, we 23 wealth oil generates. Their political Thus, the following is an attempt to must build a movement for grass- allies have repressed dissent, some- set forth a platform for Climate roots globalization and democratic times violently and brutally. Is this Justice. control over corporations. an industry which can be trusted to deal responsibly with its role in 1. Remove the Causes of Global Such democratic control could and causing global warming? Warming—Build Democratic should take many different forms. Regulating not just how a company The reality is that because of their Control Over Corporations produces something, but rather powerful interests, the oil giants are Almost every one of us is an emitter what that company produces is an adversaries, rather than allies, in the of greenhouse gasses, an addict, if important step toward greater dem- quest for environmental protection you will, of fossil fuels. We must par- ocratic control over corporations. and justice. Their behavior demon- ticipate in the technological changes When applied to climate change strates that their goal is to obstruct which will be necessary, including this approach might manifest itself actions to prevent climate change reining in our energy habits. But we in government requirements that oil so as to protect their business for must also change the habits of the companies invest truly significant as long as possible. Modeling their pushers, the fossil fuel producers. amounts of money in developing actions on historic corporate Ultimately, if those who supply and ecologically sound energy and responses to environmental issues, continue to push fossil fuels are not employment alternatives. the Greenhouse Gangsters have held accountable, we will live the taken strategic steps to accomplish 21st century in a turbulent and terri- Another step toward exerting this goal at the expense of the plan- fying greenhouse world. democratic control can be taken et’s health. through divestment campaigns Addressing climate change is against the Greenhouse Gangsters The U.S. Chamber of Commerce, intertwined with the challenge and other climate culprits. In fact, a leading business association, has of building a movement to address students at many universities across vowed to “Block [the] Climate increasingly unfettered corporate the U.S. are organizing a nation-wide Treaty and ‘Environmental power in the U.S. and worldwide. “Cool the Planet” campaign to pres- Justice.’”134 Perhaps without realiz- Corporations, through their sure their schools to divest their ing it, they made the link: climate influence in the legislative, holdings in members of the Global protection and environmental executive and judicial branches Climate Coalition.136 More broadly speaking, democratic a movement for Climate Justice As a group of Indigenous leaders control over corporations means must make democratic control over meeting on climate change recently revoking the Supreme Court grant- corporations a central organizing declared, “The continuing large ed status of U.S. personhood principle. scale extraction of fossil fuels whereby corporations enjoy the results in a number of adverse 2. Oppose the Destructive same rights and privileges as indi- changes in these vital zones, vidual citizens. Other important Impacts of Oil Locally and including deforestation, pollution reforms that could exert such dem- Globally from drilling and ultimately forest ocratic control include ending the The growing global reach of the degradation caused by climactic billions of dollars in government Greenhouse Gangsters is encoun- instability on a world wide subsidies to the oil industry; strictly tering increasingly vibrant move- scale…The zones of fossil fuel ments to curtail the mastery of oil extraction are the homes of some in our society. One is the move- of the oldest and most vulnerable The prevention of ment for climate protection. Indigenous populations on Mother Internationally, most activists have Earth. This accelerates the loss of climate change goes put their efforts into strengthening biodiversity, traditional knowledge the Kyoto Protocol, which in theo- and, ultimately results in ethnocide hand in hand with ry will reduce greenhouse gas emis- and genocide.”137 opposition to cor- sions country by country. This will Similarly, communities in the U.S. require a major transformation of located near refineries which have porate rule. energy and transportation systems built resistance to the toxic pollu- and development models. tion and refinery accidents through groups like the National Oil prohibiting corporate campaign This movement has allies and Refinery Action Network are key contributions; supporting and gen- potential allies whose own battles allies in the struggle for Climate Jus- erating government subsidies for for survival against the oil compa- 24 tice. The disproportionate siting of the widespread development of nies provide a strong push for Cli- polluting facilities like refineries in community based, renewable ener- mate Justice. For example, many low income communities of color gy sources; and creating affordable, Indigenous people and their net- has sparked an environmental jus- sustainable public transportation. works are leading battles against new oil exploration which has pro- tice movement that has responded With such changes in place, Senate foundly impacted them. And to a to both unjust government policies approval of the Kyoto Protocol growing number of Indigenous peo- and to the unfettered power of would be a slam dunk. Of course, ple, the connection between their transnational corporations, like the to get there, a powerful social local struggles against the fossil fuel Greenhouse Gangsters. When a movement must emerge in the US industry’s incursion on their ecolog- Latino community in Austin forces and around the world to challenge ically fragile lands and the global the corporate clean-up of oil stor- the Greenhouse Gangsters. Such problem of climate change is clear. age tanks, it becomes a victory—a

NO NEW EXPLORATION! For the sake of the protection of Indigenous rights and tropical forests, a moratorium on new oil exploration should begin with a moratorium on all new oil exploration would benefit focus on pristine and ecologically sensitive areas, and a recogni- the global climate, fragile local ecosystems and tion that Indigenous people have the right to say no to oil AIndigenous people living in these pristine places. development on their lands. A moratorium would acknowledge the long-term necessity While the industry is traditionally concerned with replenishing its for society to wean itself eventually off of fossil fuels. It consumption with new finds, the carbon logic, i.e. the ecological would recognize that we cannot afford to burn all the oil limit on our ability to burn oil safely, indicates it is time to lower on the planet without causing catastrophic climate change. that priority in favor of investment in other energy sources. So A moratorium would cut off the spigot of climate change, far, the industry has not responded to calls for a moratorium on even as we allow ourselves time to transform our energy new oil. Governments are unlikely to call for a moratorium right and transportation systems. By the time supplies of fossil now, but as Esperanza Martinez, coordinator of Oilwatch in Quito, fuels get low, society will have had more time to develop asserts, the moratorium “can be decreed by governments or it can alternative energy sources. be decreed and executed by local populations.” 139 link in a chain that can eventually sever the strangle- hold of the Greenhouse Gangsters.138 3. Forge Just Solutions to the Challenge of Climate Change Prevention of cli- mate change could impact workers in fossil fuel- inten- sive industries and neighboring com- munities hardest if there is no parallel effort to foster a Just Transition. Also, as we have International (PACE), is working in If we are to stop global warming, a seen, some of the proposed “solu- partnership with the Southwest strong activist movement for Climate tions,” like pollution trading, are Network for Environmental and not only unproven but also Economic Justice (SNEEJ) to build Justice must emerge in the U.S. inequitable, as they allow local a Just Transition Consortium. The —protest at Chevron headquarters, 25 communities to become toxic sacri- consortium counts among its mem- fice zones for the rest of the planet, bers a number of environmental jus- San Francisco, 1999. while letting countries like the U.S. tice organizations, including the delay true emissions reductions. Indigenous Environmental For instance, technology for eco- Solutions that force countries of the Network, the Asian Pacific logically sound energy develop- South to bear an undue burden are Environmental Network, and the ment should be made available to unjust as well. Northeast Environmental Justice the poorer countries for little or no A Climate Justice approach to solv- Network, along with Canada’s cost, rather than being held hostage ing the global warming problem Chemical, Energy and to corporate driven intellectual would, at its core, develop solutions Paperworkers Union. This consor- property and patent regimes. tium is organizing workers and that promoted economic and envi- Climate Justice also requires that neighboring “fence-line” communi- ronmental justice between commu- adequate support be given to the ties through training and dialogue. nities and between nations. Central victims of global warming—espe- The focus of this effort is to bring to this approach is the principle of cially environmental refugees who together these groups, which have Just Transition, which would set have lost access to their land, been wedged apart by industry, and aside funds to finance the transition homes, food, health and work as a to mobilize them to implement a for workers and communities result of global warming. dependent on the fossil fuel indus- Just Transition of their jobs and try. Such a transition would pro- communities so they do not unjust- Finally, Climate Justice demands mote investment, worker training ly bear the negative economic bur- that the Kyoto Protocol negotia- and community development based den of addressing the impacts of tions be democratized. Until now, on sustainability and justice. local pollution or global climate the minor concessions of the Kyoto change. Protocol have been negotiated in There is already organizing and international fora dominated by A similar transition needs to be fos- growing pressure on this front from government and lobbyists for tered at the international level, workers and communities. As men- industry. The voices of NGOs, whereby Southern nations are given tioned earlier, the recently merged Indigenous peoples and those most support to transition their Oil, Chemical and Atomic Workers affected by climate change have economies away from fossil fuels. Union and Paperworkers not been included. 4. Reverse the dynamics of UN-brokered international environ- fuel production and investments.140 corporate-led, fossil fuel mental agreements like the Kyoto Based on this reporting, the world’s based globalization Protocol must take precedence over governments could begin to hold the institutions of globalization like Greenhouse Gangsters and their Currently, corporate led globaliza- the WTO. The World Bank and cohorts globally accountable for tion is fostering investment oppor- other lending institutions must their central contribution to this tunities and new markets for the reverse their policies subsidizing global problem. fossil fuel industry. International fossil fuel-based globalization. trade and investment agreements Climate Justice also means that the like NAFTA and the WTO, along True Climate Justice requires that central corporate contribution to with multilateral lending institu- the Kyoto Protocol specifically global warming be publicly identi- tions like the World Bank/IMF, have focus at the root of the problem— fied on a global scale. There are created the global economic struc- the 122 corporations that produce many creative ways to do this. For tures that are advancing both cor- 80 percent of the fossil fuel which instance, in 1998 members of the porate profits and global warming. winds up as carbon dioxide in the European Parliament proposed that Earth’s atmosphere. A first step hurricanes should be renamed to Climate Justice requires that the toward international control of reflect this corporate role. Thus world economy serve interests of these global climate culprits would Hurricane Mitch might have been human rights and the environment, be for the Kyoto Protocol to called Hurricane Shell, while not corporate bottom line. For require that every major energy Hurricane Floyd might instead have starters, international labor stan- company in the world report the been called Hurricane Exxon- dards from the ILO, the Universal current and future global warming Mobil. Declaration on Human Rights and emissions implications of the fossil

26 Final Words

he clash between the hydrocarbon economy fuel use, we can begin to free ourselves of the tyranny and environmental protection seems to present of the oil industry over our lives. We can reduce an intractable contradiction. But it also pres- destruction of Indigenous cultures and reduce pollution ents an opportunity to society. Once we accept of local communities. We can begin to build less cen- Tthat climate change forces us to severely limit fossil tralized energy systems, cleaner cities, less sprawl, more cooperation between North and South, more independence from the super-giant corporations which now control such fundamental aspects of our daily lives. The prevention of climate change goes hand in hand with the opposition to corporate rule. Of course, Climate Justice will not be achieved without the emergence of a powerful movement for grassroots globalization—one which links efforts for social and environmental justice across the globe. The good news is that such a movement is emerging.

Ken Saro Wiwa puppet, International Day of Action Against Corporate Globalization, San Francisco Notes

1 Exxon and Mobil announced their intention to 17 In this paper, natural gas is considered as part of major was French-owned CFP. Daniel Yergin, The merge in 1998. Unless otherwise indicated, this the petroleum, or oil industry. Natural gas gener- Prize p. 503 Simon and Schuster, New York 1991 paper treats them as one corporation. The merger ally burns somewhat cleaner than oil, and theo- 37 1997 Top 100 Ranking, Energy Research Group, is pending U.S. government approval. retically has a slightly lower greenhouse effect New York, 1998 than oil. However, fugitive emissions of natural 2 The recently merged BP Amoco has announced its 38 Speech of James Simpson, VP and Managing intention to buy Arco. Unless otherwise indicated, gas bring its greenhouse effect up to oil’s level. Moreover, the local impacts of natural gas extrac- Director, New Ventures, Chevron Overseas this paper treats them as one corporation. The Petroleum Company, to the 1998 Annual merger is pending U.S. government approval. tion are similar to oil. Finally, natural gas is domi- nated by the same corporate players as oil. Convention, American Association of Petroleum 3 Kingpins of Carbon: How Fossil Fuel Producers Geologists, Salt Lake City, Utah, 5/18/98 18 Kingpins of Carbon Contribute to Global Warming, Natural Resources 39 Agis Salpukas, “Do Oil and Bigger Oil Mix?” The Defense Council, the Union of Concerned Scien- 19 Rick Heede, “Carbon Majors Summary Table,” New York Times 12/2/98 p.C1 tists and the U.S. Public Interest Research Group unpublished study for Greenpeace International, 40 The deals pending are Exxon/Mobil, BP Education Fund, Washington DC, July based on data from CO2 Information and Analysis 1999.(www.nrdc.org/nrdcpro/carbon/kocinx. Center, Oak Ridge National Laboratory, Oak Ridge, Amoco/Arco and Total Fina/Elf Aquitaine html)The figure of 122 corporations counts Exxon, TN 41 Yergin and Stanislaw, The Commanding Heights p. Mobil, BP Amoco, Arco, Total Fina and Elf 20 Kingpins of Carbon, Part 2. 13 Simon and Schuster New York 1998. Aquitaine as separate companies. 21 “Big Oil Accords Have Raised the Stakes for 42 Kingpins of Carbon, p. 5, and Part II. 4 Personal interview with Paulina Garzon, Center for Competitors Like Texaco,” The New York Times 43 Mobil WebPage, www.mobil.com/ Economic and Social Rights, Quito, 6/3/99, 12/3/99 C6 alliance_venezuela/index_venezuela.htm regarding oil’s impacts on the Amazon region of Ecuador 22 Texaco 1998 Annual Report p.20, White Plains, 44 Speech of James Simpson New York April, 1999 5 Translated from Spanish by authors, Declaracion de 45 Carol Alexander & Ken Stump, The North American Albuquerque de los “Circulos de Sabiduria” Los 23 Patrick Crow, “Watching Government” Oil and Gas Free Trade Agreement and Energy Trade, Pueblos Nativos/Las Tierras Nativas Sobre Los Journal 97:2,1/11/99 Greenpeace USA, Washington DC, 1992. Cambios Climatologicos, Reunion de Trabajo y 24 Rick Heede, Oil Industry and Climate Change, 46 “Industry Consultation Program, Current Cumbre, 1 De Noviembre de 1998. Albuquerque, Appendix V p. 61 Greenpeace International, Membership, November 17, 1998” Office of New Mexico. Amsterdam 1998, from Table 1. “Total anthro- the United States Trade Representative, 6 Comments of Experts on Hurricanes and Climate pogenic CO2 emissions,” Updated information on www.ita.doc.gov/icp/members6.html greenhouse gas emissions and projections, Change, Institute for Public Accuracy, Washington, 47 Lori Wallach and Michelle Sforza, Who’s Trade Subsidiary Body for Implementation, Framework D.C. 9/16/99 www.accuracy.org Organization? Public Citizen, Washington DC, Convention on Climate Change, United Nations 1999, pp. 31-34. 7 Climate Change: The IPCC 1990 and 1992 FCCC/SBI.INF. 4/10/14.97, and Data Table 16.1 Assessments, Intergovernmental Panel on Climate “Emissions from Fossil fuel Burning and Cement 48 Aaron Cosbey, James Cameron Barrister, “Trade Change, Geneva, Switzerland. pp 168; IPCC Second Manufacturing, 1995,” Carbon Dioxide Information Implications of the Kyoto Protocol,” International Assessment - Climate Change 1995, A Report of the Analysis Center, reprinted in World Resources Institute for Sustainable Development, Canada, no Intergovernmental Panel on Climate Change, 1998-99, World Resources Institute/ Oxford date. 27 Geneva; www.ipcc.ch/; Framework Convention on University Press, New York, 1998. Climate Change 49 Steve Kretzmann and Shannon Wright, Drilling to WebPage,www.unfccc.de/resource/iuckit; 25 Leslie Wayne, “Companies Used to Getting Their the Ends of the Earth, Rainforest Action Network Executive Summary of the National Communication Way,” The New York Times 12/4/98 p.C1 and Project Underground, San Francisco, 1998 of the United States of America, submitted to the 26 As cited in “Greasing the Wheels,” The New York 50 David Chance, “Oil spending set for biggest drop UNFCCC Secretariat under Articles 4 and 12; Times 12/4/98 p.C1 in decade” Reuters 12/22/98 FCCC/NC/7 25 July 1995; Climate Countdown fact 27 Gary Cook and Kirsty Hamilton, Oiling the Machine, 51 Harold L. Ickes. U.S. Secretary of the Interior, sheet “In Their Own Words; Corporations Greenpeace, Washington D.C. undated 1933, as quoted in Daniel Yergin, The Prize, p. Recognize the Threat of Climate Change and 254 Support Action,” National Environmental Trust, 28 The US government provided net subsidies of Nov. 1998, Washington, D.C. between $5.2 and $11.9 billion to the oil sector 52 Intergovernmental Panel on Climate Change, 2nd during 1995, Douglas Koplow and Aaron Martin, Assessment Synthesis of Scientific-Technical 8 The Greenpeace WebPage: www.greenpeace.org/ Fueling Global Warming: Federal Subsidies to Oil in Information Relevant to Interpreting Article 2 of climate/industry/ reports/sceptics.html has a the United States, Greenpeace USA, Washington the United Nations Framework Convention of thorough rebuttal of the skeptics’ case against the DC, 1998. Climate Change, www.ipcc.ch/ reality of climate change. 29 Leslie Wayne “Companies Used to Getting their 53 This argument is thoroughly explained in several 9 Almost every week brings new scientific reports of Way,” The New York Times 12/4/98 p.C1 Greenpeace Reports, including The Carbon Logic, observed effects of climate change in scientific Greenpeace International Amsterdam, 1997, and 30 Remarks by Lee R. Raymond, Chairman Exxon publications or general interest magazines and on the Greenpeace WebPage www.greenpeace.org. Corporation, American Petroleum Institute Annual newspapers. A good summary as of spring ’99 can The argument against new oil exploration on Meeting, 11/11/96, Exxon WebPage, be found in Patrick Mazza and Rhys Roth, “Global grounds of human rights protection as well as cli- www.exxon.com/exxoncorp/news/speeches/speech Warming Is Here: The Scientific Evidence” Climate mate protection is well laid out in Steve Kretzman _111196.html Solutions, Olympia, Washington, May 1999 and Shannon Wright, Drilling to Ends of the Earth 31 “Industry Group Plans to Battle Climate Treaty” 10 See United Nations Climate Convention Secretariat 54 Among the groups which have called for a mora- The New York Times April 26, 1998 p.1 at www.unfccc.de/ torium in some form are the Oilwatch Network, 11 United Nations Environment Programme WebPage, 32 Sources: Matthew Wald, “Muscle, Muscle Every- Environmental Rights Action, Greenpeace, www.unep.ch/iucc/fs111.html where,” The New York Times, 5/19/99 p.18; “Ford Rainforest Action Network, Project Underground, Buys Volvo Unit in Bid To Lift Profile of Luxury 12 “South Asia Statement to Fourth Conference of Institute for Policy Studies, Accion Ecologica, and Cars,” The New York Times 1/29/99 p.C4, Parties to the Framework Convention on Climate many others. “DaimlerChrysler Presents First Driveable Fuel Cell Change,” Buenos Aires, published in Center for 55 Oronto Douglas, “Tongues of Fire”, Corporate Technology Car In the U.S.,” DaimlerChrysler press Science and Environment Dossier, Delhi, 10/24/98 Watch Interview:www.corpwatch.org/feature/cli- release, Washington, D.C. 3/17/99; John Kennedy mate/oronto.htm, October, 1998. 13 Personal communication, Denny Larsen, National “How Oil and Gas Companies Fought 1998 and Oil Refinery Action Network, San Francisco, Dec., Won,” Oil and Gas Journal 97:1, 1/4/99; and Keith 56 John Browne, BP CEO, as quoted in “Business 1998 Bradsher, “It’s a Hybrid in sport Utility Clothes,” Information Sheet,” Climate Countdown Project, 14 See Bradford C. Snell, American Ground Transport: The New York Times, 9/15/99 p.C1 National Environmental Trust, Washington D.C. 1997 A Proposal for Restructuring the Automobile, Truck, 33 Kingpins of Carbon, Table 3. Bus and Rail Industries, Report prepared for the 57 Jack Doyle, Hold the Applause: A Case Study of 34 Ibid, Part 1. Committee of the Judiciary, Subcommittee on Corporate Environmentalism as Practiced at DuPont, Antitrust and Monopoly, United States Senate, 35 Figure 1.5: CO2 emissions of top 100 generating Friends of the Earth, Washington, D.C. 1991 companies, Benchmarking Air Emissions of Electric February 26, 1974. 58 Barry Castleman, Asbestos: Medical and Legal Utility Generators in the U.S, Natural Resources 15 “Tongues of Fire,” Corporate Watch Interview with Aspects, 3rd edition, Prentice Hall Law and Defense Council, New York 1998 Oronto Douglas, Nigerian Human Rights lawyer, Business, 1990 36 The Seven Sisters were Standard of New Jersey www.corpwatch.org/features/climate/ 59 Chlorine Chemistry Council, various press releases (later Exxon), Socony-Vacuum (Mobil), Standard of 16 Daniel Yergin, The Prize p.41 Simon and Schuster, and position papers, see for example http://c3. California (Chevron), Texaco, Gulf, Royal New York 1991 org/newsroom/press releases/03-9-99.html Dutch/Shell and British Petroleum. The eighth 60 David Lewis, former General Motors speechwriter, 88 William L. Randol, “Rockefeller’s Revenge” The 113 Daphne Wysham and Jim Vallette, Fueling Climate quoted in Keith Bradsher “New Leaders Hope to New York Times op-ed page 12/3/98 Change; The World Bank and the G-77 Still Help Motor City Come Clean,” The New York Times 89 J. Andrew Hoerner, Border Adjustments and Changing the Earth’s Climate for Business, version 5/19/99 p.G21 Climate Policy: What Are Border Adjustments and 1.2, Sustainable Energy and Economy Network 61 Personal communication, Greenpeace toxics cam- Why Should Labor Care? Center for a Sustainable (Institute for Policy Studies) and International paign, Washington, D.C. 1998 Economy, Washington D.C. Feb. 24, 1999 Trade Information Service, Washington, D.C. Nov. 1998 62 Andy Rowell, unpublished report “The Global 90 Flavin and Dunn, “Shift To A Low-Carbon Energy Climate Coalition,” for Friends of the Earth Economy May Open Multi-Billion-Dollar Economic 114 Rio Declaration, Principle Seven, Rio Earth International, 1997 Opportunities,” WorldWatch Institute, Washington, Summit, United Nations, Rio de Janeiro and New York, 1992 63 Mobil and Exxon WebPages,www.mobil.com and D.C. 11/30/97, reprinted in Rising Voices against www.exxon.com, speeches and position papers on Global Warming, IZE, Frankfurt, pp. 54-155 undated 115 Daphne Wysham and Jim Vallette, Fueling Climate climate change 91 “Energy Innovation: A Prosperous Path to a Clean Change; “Business as Usual?” Institute for Policy Studies and Friends of the Earth, May, 1999 64 Exxon, Mobil and Texaco WebPages: Environment,” Executive Summary p. 19, Energy Innovations, Washington, D.C. 1997: Tellus Washington, D.C; . “China Launches Project to www.mobil.com, www.exxon.com, and www.texa- Develop Solar, Wind Energy,” AFP, Beijing 4/7/99. co.com Institute, Alliance to Save Energy, American Council for an Energy-Efficient Economy, Natural 116 Responsible Care, Chemical Manufacturers 65 Exxon WebPage, www.exxoncorp.com/news/publi- Resources Defense Council, Union of Concerned Association, Washington D.C., various Exxon and cations/safety_report/energy/index.ht Scientists, www.tellus.org/ei Mobil WebPage statements on climate change 66 Series of Mobil op-eds available at: 92 Kenny Bruno, “Poison Petrol,” Multinational 117 Bruno and Greer, Greenwash: The Reality Behind www.moblile.com/climate_opeds/ Monitor, Washington, D.C. July/August 1991 Corporate Environmentalism, p.11, Third World 67 “The Kyoto Protocol: too many gaps” Mobil adver- 93 Just Transition Movement for Jobs and the Network, Penang, Malaysia 1996 tisement, The New York Times op-ed page 9/10/98 Environment, Public Health Institute and Labor 118 ibid 68 American Petroleum Institute WebPage, Institute, New York, May 1998 119 “Greenwash Award,” www.corpwatch.org/trac/ www.api.org/global climate/start a/html 94 Oil, Chemical and Atomic Workers Union, greenwash/chevron.html 69 Steve Liesman, “Inside the Race to Profit From Resolution on Just Transition, passed at 1997 120 Exxon WebPage: www.exxon.com Global Warming,” The Wall Street Journal, OCAW Convention 10/19/99 121 “When Special Care Is Called For,” Mobil advertise- 95 Climate dossier from National Environmental Trust, ment, The New York Times op-ed page 5/5/99 70 Mike Belliveau, Smoke and Mirrors: Will Global Washington, D.C. 1998 122 Shell advertisement, Business Week, 5/17/99, pp. Pollution Trading Save the Climate or Promote 96 Various Mobil op-ed page ads, The New York Times Injustice and Fraud? Transnational Resource and 68-69 Action Center, San Francisco 1998 97 This adapted from Eileen Claussen et al., The 123 Royal Dutch/Shell Group of Companies, Financial Complex Elements of Global Fairness, Pew Center 71 Jack Kemp and Fred L. Smith Jr., “Beware of the and Operating Information 1994-1998, Shell for Climate Change, Arlington, VA 1998; for other International Limited, London Kyoto Compromise” The New York Times op-ed proposals on equitable sharing of emissions reduc- page 1/13/99 tions from a southern viewpoint see CSE dossier, 124 BP Amoco WebPage: 72 Gregory Palast “Fill your Lungs—It’s Only factsheets 1- 6, Center for Science and www.bpamoco.com/about/policies/climate.htm Borrowed Grime” London Observer 1/23/99 Environment, Delhi, November, 1998 125 BP Amoco WebPage, 73 “Just Transition Movement for Jobs and the 98 Eileen Claussen et al. The Complex Elements of www.bpamoco.com.nms.page3.html 28 Environment,” Public Health Institute and Labor Global Fairness 126 “We Laughed! We Cried! But Mostly We Cried!” Institute, draft 7.1 pp. 1, 18-19 May 1998 99 Duncan Austin, Jose Goldemberg et. al., Greenpeace press release, New York, April 22, 74 AFL-CIO has organized several meetings of envi- “Contribution to Climate Change: Are Conventional 1999. ronmental groups and labor unions in Washington Metrics Misleading the Debate?” Climate Notes, 127 International Energy Agency WebPage, D.C. to explore a Blue/Green coalition on the cli- World Resources Institute October 1998 www.iea.org/stats/files/keystats/ Washington D.C. mate issue. 128 Personal communication with Paulina Garzon, 75 “Energy Facts and FAQ” American Petroleum 100 Framework Convention on Climate Change, Center for Economic and Social Rights, Quito, Institute fact sheet, via www.api.org/edu/fact- “Communications From Parties included in Annex I June 3, 1999 to the convention” FCCC/SBI/1997.INF.4 14 soil.htm 129 “Texaco vs Indigenous Groups,” Environmental October 1997 76 “Global Climate Change,” American Petroleum News Service, February 3, 1999; also see www.tex- Institute fact sheet, via www.api.org/global cli- 101 World Resources 1998-1999, Data Table 16.1 acorainforest.org mate/start a.htm 102 South Asia Statement 130 Peter Waldman, “Nigerian’s Suit Alleges Chevron 77 Mary Novice et al, Global Warming: The High Cost 103 “US Goes On Energy Splurge After Falling Of Its Backed Attacks That Violated Human Rights,” Wall of the Kyoto Protocol, Wharton Econometric Diet,” The New York Times Oct 22, 1998 p.C6 Street Journal, 528/99; Kenneth Howe “Human Forecasting Associates (WEFA) 1998 Rights Group Investigates Chevron: 2 Nigerians 104 Bruno and Greer, Greenwash: The Reality Behind 78 James P. Barrette, Global Warming: The High Cost killed in offshore protest” San Francisco Chronicle, Corporate Environmentalism, Third World Network, November 19, 1998 of the WEFA Model, Economic Policy Institute, Penang, 1996 p. 56 Washington, D.C. November, 1998 131 Earth Rights: Linking Human Rights and Ecological 105 Robert Weissman, “Big Tobacco Goes Global” Protection, EarthRights International, Washington 79 Memorandum “American Petroleum Institute Multinational Monitor, July/August 1998 pp26-32. Study,” provided by National Environmental Trust, D.C. 1999 Washington, D.C. undated 106 Kenny Bruno, “Poison Petrol,” Multinational 132 Personal communication with Tatiana Roa, CENSAT, Monitor, Washington D.C. July/August 1992 80 Ronald J. Sutherland, “The Impact of Potential Bogota, 6/99 Climate Change Commitments on Six Industries in 107 Barry Castleman, Asbestos: Medical and Legal 133 Personal communication with Ka Hsaw Wa, Karen the United States,” Energy Policy, Vol. 26 no.10 Aspects activist from Burma now living in exile in pp.756-776, 1998 108 Bruno and Greer “Moving South” Third World Thailand and the United States, 9/23/99 81 Remarks by Lee R. Raymond, chairman, Exxon Resurgence #54, Third World Network, Penang, 134 “Key U.S. Chamber-Backed Environmental Riders - Corporation to American Petroleum Annual Malaysia 1994 Block Kyoto Climate Treaty and Environmental Meeting, Nov. 11, 1996, via 109 Supplement to the 1992 Chevron Annual Report, Justice’” U.S. Chamber of Commerce New Release, www.exxon.com/exxoncorp/news/speeches/speech p. 11, cited in Joshua Karliner, The Corporate Washington, D.C. 10/6/98 _111196.html Planet: Ecology and Politics in the Age of 135 Personal Communication, Esperanza Martinez, 82 Ages Salukis, “Low Prices Have Sapped Little Oil Globalization, Sierra Club Books, San Francisco, coordinator, Oilwatch, Quito 6/7/99 1997, p. 80 Producers,” The New York Times 4/3/99 p.C1, C4 136 See http://www.ozone.org/cooltheplanet.html 110 Andy Rowell, unpublished report for Greenpeace 83 “Oil prices and Layoffs,” Editorial, Oil and Gas 137 Declaracion de Albuquerque Journal 97:13, 3/29/99 International, Amsterdam, 1997, on file with authors 138 Mike Ward, “Escaping the Shadows of the Tanks: 84 BP Amoco press release, BP Amoco WebPages, Citizens Use voice for Change,” Austin American- bpamoco.com/pressrelease01041999 111 Remarks by Lee R. Raymond, Chairman and Chief Executive Officer Exxon Corporation, World Statesman, 2/14/93 85 “BP Amoco Acquisition Means Layoffs” Associated Petroleum Congress, Beijing, People’s Republic of 139 Personal communication, Esperanza Martinez Press 4/1/99 China 10/13/97 via Exxon WebPage 140 Kingpins of Carbon, Executive Summary. 86 “BP Amoco cuts 900 Jobs in Britain,” AFP Jan. 8, www.exxon.com/speeches 1999 ; “BP-Amoco to cut 1,500 Chicago-area 112 See, for example, Mobil op-eds in The New York jobs” UPI/Oil and Gas Journal Online 2/4/99 Times and fact sheets “Oil Industry and Human 87 David M. Halbfinger, “Consolidations Give Jitters Rights,” American Petroleum Institute, Washingon, to Station Operators,” The New York Times D.C. undated 12/3/98 p.C7 Climate Justice Resources

Centre for Science and Environment, CSE is a leading voice from c/o Public Health Institute 853 Broadway, Room 2014; New York, the South on questions of climate change and international equity. NY 10003; tel: 212-674-3322; fax: 212-353-1203; 41, Tughlakabad Institutional Area, New Delhi-110062. INDIA e-mail: [email protected]; www.justtransition.org; tel: 91-11-698-1110, fax: 91-11-698-5879 The National Oil Refinery Action Network links together neigh- e-mail: [email protected]; www.oneworld.org/cse/ bors, workers, and responsible shareholders who want to see the oil Climate Action Network provides an International Directory of non- industry made cleaner, healthier, and safer. A project of CBE. governmental organizations working on climate change. c/o CBE, 500 Howard Street, Suite 506, San Francisco,CA 94105 1200 New York Avenue Suite 400; Washington, D.C.20005 tel: 415-243-8373; e-mail: [email protected]; www.igc.org/cbesf tel: 202-289-4201; fax: 1-202-289-1060 Oilwatch is an Ecuador-based network of organizations and communi- e-mail: [email protected]; www.climatenetwork.org ties in Asia, Africa and Latin America fighting oil development in the Climate Solutions works in the Pacific Northwest to stop global tropics. Oil Watch has also been active on the climate change issue. warming at the earliest possible point, boost Clean Energy Investment Alejandro de Valdez N24-33 y La Gasca and create more livable community design Casilla 15-15-246-C, Quito, Ecuador 610 East Fourth Avenue, Olympia, Washington 98501 tel: 593-9-700-712; fax: 593-2-547-516; tel: 360-943-4595; fax: 360-943-4977 e-mail: [email protected] e-mail: [email protected]; www.climatesolutions.org Ozone Action is a progressive Washington, DC based non-profit pub- Cool the Planet is a national student-run campaign dedicated to lic interest organization focused exclusively on two atmospheric opening people’s eyes to the threat global warming poses to the future threats: global warming and stratospheric ozone depletion. and to showing the world that students are no longer going to stand 1700 Connecticut Ave. NW, 3rd Fl., Washington, DC 20009 for the corrupt policies of corporate America and groups like the tel: 202-265-6738; fax: 202-986-6041 Global Climate Coalition. e-mail: [email protected]; www.ozone.org Contact: www.cooltheplanet.org; www.ozone.org/ Project Underground seeks to systematically deal with the problems cooltheplanet.htm created by the mining and oil industries by exposing environmental EarthRights International combines the power of law and the power and human rights abuses by the corporations involved in these sectors. 29 of people in defense of human rights and the environment. ERI works 1847 Berkeley Way Berkeley, CA 94703; on the ground level in Southeast Asia. tel: 510-705-8981; fax: 510-705-8983; 2012 Massachusetts Avenue NW, Washington D.C. 20036 e-mail: [email protected]; www.moles.org tel: 202-466-5188; fax: 202-466-5189; e-mail: www.earthrights.org Rainforest Action Network: RAN’s Beyond Oil campaign works to Friends of the Earth International runs a climate change campaign, halt new oil exploration and to protect indigenous people’s rights, the focuses on corporations like Exxon and lobbies governments around local environment and the global climate. the world on ratifying and strengthening the Kyoto Protocol. 221 Pine Street Suite 500; San Francisco, CA 94104 U.S.A P.O. Box 19199; 1000 GD Amsterdam; The Netherlands tel: 415-398-4404; fax: 415-398-2732 tel:+31-20-622-1369; fax: 639-2181; e-mail: [email protected]; e-mail: [email protected]; www.ran.org www.foe.co.uk/climatechange/ The Southwest Network for Environmental and Economic Justice Greenpeace has steadily pressured the world’s governments through is a coalition of community based grassroots organizations, native, campaigning and lobbying to enact and implement the Kyoto labor and student groups from the southwestern and western United Protocol. It has also targeted corporate climate culprits, including States working to build a multi-racial, multi-cultural and international many large oil corporations for their role. movement that promotes environmental and economic justice. SNEEJ is a participant in the Just Transition consortium. 1436 U St NW, Washington, D.C. 20009 tel: 202-462-1177; fax: 202-462-4507 P.O. Box 7399, Albuquerque, NM 87194 e-mail: www.greenpeace.org/climate tel. 505-242-0416; fax: 505-242-5609 e-mail: sneej@flash.net Indigenous Environmental Network is an alliance of grassroots indigenous peoples whose mission is to protect the sacredness of The Sustainable Energy and Economy Network: SEEN works in Mother Earth from contamination and exploitation by strengthening partnership with citizens groups globally on environment and develop- maintaining and respecting the traditional teachings and the natural ment issues with a particular focus on climate change, energy, gender laws. IEN was helped draft the Albequerque Declaration of equity, and economic issues. Indigenous peoples on climate change. C/o IPS, 733-15th St., NW, Suite 1020, Washington, DC 20005 P.O.Box 485 Bemidji, MN 56601 tel: 202-234-9382; fax: 202-387-7915 tel. 218-751-4967; fax: 218-751-0561 e-mail: [email protected]; www.seen.org e-mail: [email protected]; www.alphacdc.com/ien/ The Just Transition Consortium is a process to ameliorate the Photo Credits: Pg. 1 Daniel Hulshizer/AP/WideWorld Photos, 1999; conflict between jobs and the environment. It brings organized labor, Pg.4-5 CODEFAGOLF, Honduras; Pg. 15 Sam Kittner/Greenpeace, the traditional environmental community and the people of color 1990; Pg. 22 Andy Drumm/RAN; Pg. 25 Marc Beck, 1999; Pg. 26 environmental justice movement together to develop policies and rela- Marc Beck, 1999; Back cover: Jennifer Pangraze/Greenpeace, Tom tionships to avert clashes. Levy/APEN. he Greenhouse Gangsters— giant oil corporations—play a key role in causing both local pollution and global warming. TBuilding a movement for “Climate Justice,” one where communities hold the oil corporations accountable while prioritizing human rights, labor rights and environmental justice, is central to any solution to climate change. You can help build this movement! Get involved and get active. Think and act both locally and globally. Mobilize to hold corporate climate culprits accountable. Order Greenhouse Gangsters vs. Climate Justice in bulk and distribute it through your community, activist networks, co-workers and friends.

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I’d like to get more involved, please send me information about working for Climate Justice Send me monthly Corporate Watch e-mail updates Put me on your CyberAction Team so I can send free faxes protesting corporate abuses! I’d like to order more copies of The Greenhouse Gangsters ____1-9 copies @ $2.00 each ____10-49 copies @ $1.50 each ____50 or more @ $1 each Amount ______(Prices for fossil fuel corporations and their representatives: $75 each, no bulk discount) California Residents add 8.5% sales tax Sales tax ______I’d like to make a tax-deductible contribution to support TRAC’s work for Climate Justice: Donation ______$25 Climate Justice Activist $50 Corporate Watchdog $100 Multinational Masher $500 or more Globalization Gladiator! Other______Total ______Make check payable to: TRAC/Tides or use your credit card: Visa Mastercard

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TRAC PO Box 29344, San Francisco CA, 94129, USA • e-mail: [email protected] • www.corpwatch.org