New study proposes drastic plan to put giant industry's 'superprofits' to use: 'They need to be held accountable'

Many of the nations hardest hit by our overheating planet don't have the financial means to mitigate the impacts. A new study makes a case for the most polluting countries to use dirty energy profits for financial contributions to vulnerable regions of the world.

What's happening?

Nearly 200 countries at the 2024 United Nations Climate Change Conference in Baku, Azerbaijan, in November pledged to triple the finances needed for developing countries to deal with the impacts of a warming world by 2035.

That translates to $300 billion annually. It's a big number but falls far short of the overall estimated $1.3 trillion from public and private sources that is targeted for 10 years from now.

That's where the study's proposal comes into play. As Mongabay reported, the analysis that was published on the eve of the conference, or COP29, emphasizes the importance of compelling major polluting industries — notably oil and gas — to provide more substantial financial support for countries that cannot afford to contribute. 

"The windfall profits alone taken in by oil and gas companies due to the 2022 energy crisis would have been sufficient to cover the existing commitments of the industrialized nations for nearly five years," a news release about the study from the Technical University of Munich explained.

The study added that "superprofits" that year — defined as being "above the stated expectations at the beginning of the year" — soared to around half a trillion dollars. 

Two years ago, the Union of Concerned Scientists also called out oil and gas giants, writing: "The profits made by the oil and gas majors come at the direct expense of all of us and our shared planet. These companies continue to extract more fossil fuels from the ground, lobby for their interests, deceive and misinform the public about climate change, and build new infrastructure to lock us into this continual cycle of extraction, combustion, and the dire consequences it brings. They need to be held accountable for these actions."

Why is helping poorer nations with climate financing so important?

A blog post from the International Monetary Fund titled "Poor and Vulnerable Countries Need Support to Adapt to Climate Change" says the "poorest countries face the greatest risks" from an overheating planet. 

"Some countries face daunting costs already," the post states. "Unfortunately, countries that need to adapt the most often lack the means to do so. They typically lack the financing and the institutional capacity to implement needed adaptation programs. Further, some countries most exposed to heat waves, droughts, storms, and sea-level rise often confront other pressing development needs."

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What's being done about helping vulnerable nations financially?

The IMF believes investing in resilience and adaptive strategies — such as enhanced irrigation, improved seed technology, robust health systems, and expanded access to finance and telecommunications — can yield substantial long-term savings.

We can also do our part to reduce the production of heat-trapping gases, which are raising the risks of supercharged extreme weather around the world. Since the bulk of these gases come from dirty fuels, making adjustments to limit their use is a great place to start.

It's not only cost-effective — it's also the most crucial factor in bringing our climate back into balance over time. Signing up for community solar will let you tap into the perks of clean energy, like better air quality and lower utility bills, without an investment in your own solar system.

Meanwhile, upgrading to LED bulbs and adopting smart home technology can make your dwelling more energy efficient, which can mean you're pulling less power from an electrical grid still mostly running on dirty fuels. 

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