IN the wake of record-breaking profits, more needs to be done to force big energy companies to reduce their impact on the environment, rather than telling individuals it’s their responsibility. That’s the view of UK fuel tech company SulNOx Group Plc, which has developed technology which can significantly reduce emissions from fossil fuels, and Caroline Dennett who publicly severed tied with Shell, accusing the company of having a “disregard for climate change risks”.
Nawaz Haq, Executive Director of SulNOx Group, said: “Systematic change on a global scale is needed – we have to have policies, infrastructures and technologies in place now that put the environment first. We cannot simply sit around twiddling our thumbs while we wait for clean power sources to become viable.
“Energy companies and Big Oil ave got to shift significantly. We have had a lot of promises, but now we need to see action. The new CEO at Shell, for example, has said the ‘opportunity to be able to rewire the entire energy system towards lower carbon’ is a ‘fantastic opportunity’. But we also know Shell only invested the equivalent of 6.3% of its £17.1bn profits into renewable energy in the first half of the year, nearly three times less than it invested in new oil and gas.”
Caroline Dennett believes there is no incentive for Big Oil to contribute to climate and pollution solutions.
“Certainly in the UK the oil and gas majors are not encouraged by the government to invest in decarbonising our energy infrastructure and systems. It is the opposite,” she said. “For example, the much debated ‘windfall tax’ on oil and gas companies’ recent high profits was discounted by 91% if the companies evidenced substantial re-investment in new oil and gas extraction projects in the North Sea.
“How beneficial would it be for both energy security and securing a liveable future if the discount was offered in return for investment in renewable energy infrastructure and development? Instead, renewable energy companies are ordered to pay a higher tax levy than these fossil fuel producers, 45% vs 35%, with no chance of a discount for re-investment in renewables.
“These are the wrong incentives. We need smarter thinking and policies from the government that match their carbon reduction pledges.”
