-
: “This is
a clear signal that the transition to net zero is underway and
that big oil companies will not play a role in our economy in
the future”
Green Party co-leader has said
the news that Shell has seen an 87% fall in earnings [1] is an
indication that the transition away from fossil fuels is now
fully underway.
Bartley has now urged the government to step in to help those
workers who are being made redundant at Shell and other fossil
fuel companies by providing training for the Green jobs of the
future.
Green Party co-leader :
“While some of these record losses are the result of Covid, it is
clear that policies to transition beyond fossil fuels are
impacting the balance sheets of big oil companies as they
downgrade some of their reserves as stranded assets. [2]
“This is a clear signal that the transition to net zero is
underway and that big oil companies will not play a role in our
economy in the future.”
The results come a week after credit ratings agency S&P
Global Ratings said it is considering [3] downgrading
a number of major oil and gas producers, including Shell, “to
reflect a growing risk to their businesses from the energy
transition, price
volatility, and future profitability.”
The Green Party will be watching closely as Shell prepares to
launch its strategy for a net zero emissions future next week.
Bartley continued:
“As big oil companies go through essential restructuring in the
face of the climate emergency, we need the government to step in
and retrain their workers for the new opportunities in the green
economy. Such restructuring needs to be at the heart of
investment for the post-Covid recovery.
“For decades we have been told that we must support fossil fuel
companies because they pay pensions but now we see it is pension
funds themselves that are driving the move away from big oil.
“Setting a net zero target means that all those who will be
receiving pensions beyond that date must have fossil assets
excluded from their funds. Insurance companies, who are bearing
the brunt of climate-related loss and damage, are also turning
their backs on fossil fuels.”
ENDS
Notes
1. https://news.sky.com/story/shell-tumbles-to-19-9bn-loss-as-pandemic-hits-energy-demand-12208176
2. https://www.theguardian.com/business/2020/aug/14/seven-top-oil-firms-downgrade-assets-by-87bn-in-nine-months
3. https://www.spglobal.com/platts/en/market-insights/latest-news/oil/012621-oil-majors-credit-ratings-under-threat-from-growing-climate-risks-sampp-global
