The White House hosted this year’s Major Economies on Energy and Climate Forum yesterday. The highlight of the forum was the speech by United Nations Secretary-General António Guterres to the leaders of the world’s major economies. Secretary General Guterres did not restrain himself in critical comments towards President Biden about his administration’s response to recent fossil fuel companies’ actions.
Before the White House’s plan to negotiate with oil companies about increasing production, Secretary General Guterres said:
“However, we seem to be stuck in a world where fossil fuel producers and financiers have people by their throats. For decades, many in the fossil fuel industry have invested heavily in pseudoscience and public relations – with false narratives aimed at minimizing their responsibility for climate change and undermining ambitious climate policies.
They exploited exactly the same scandalous tactics as Big Tobacco decades ago. Like tobacco interests, fossil fuel interests and their financial accomplices must not shirk responsibility. Arguments for setting aside climate action to address domestic problems also become hollow.
Had we invested earlier and massively in renewable energy, we wouldn’t have found ourselves again at the mercy of the volatile fossil fuel market. So make sure that the war in Ukraine is not used to increase that dependence.”
Guterres felt strongly that the world’s dependence on fossil fuels created an unstable system. This unstable system encourages greater reliance on fossil fuels and the companies that produce them. The Secretary-General recommends that the only way to stabilize gas prices and ensure long-term sustainable economic growth is to adhere to a five-point plan that he has presented to the international community:
- Treat renewable technologies as freely available global public goods.
- Expand and diversify the renewable energy supply chain.
- Transfer fossil fuel subsidies to vulnerable people who want to participate in the green economy.
- Reform administrative apparatuses to fast-track approval processes.
- Triple public and private investment in renewable energy to at least $4 trillion a year.
The Secretary-General’s proposal to focus heavily on the transition to renewable energy intuitively makes sense. Reducing the demand for oil will increase the available supply and decrease the price of oil. His The third point has a lot to do with rising prices. Oil companies should not receive government subsidies to increase output when the average person is burdened at the pump while producer profit.
