The Road to Clean Energy
Inspired by Finance Week, Alba in Year 11 comments on clean energy and green washing. In light of COP26, she implores us to see energy resources as something we can influence, not solely world leaders or oil company CEOs.
It’s fair to say climate change is a big issue in the 21st century; one we are very familiar with. In the UK, the government has pledged to be net-zero for carbon emissions by 2050, meaning the UK will absorb as much carbon dioxide as it emits.
Clean energy is the solution to carbon emissions
A critical way to achieve this is through using clean energy – swapping fossil fuels for renewable sources. In this article, I will be focussing on oil. When burned, oil not only produces energy, but carbon dioxide. This increases greenhouse gases and is a major contributor to global warming. Globally, many activists have been protesting against big oil companies such as BP, but how effective is this, and what can we all do that will really make a difference?
Many people have contributed to reducing our oil usage. They have done this by pressuring big oil companies such as BP, to reduce supply or change their business models to provide green alternatives. BP is a British multinational oil and gas company, involved in all areas of the industry. These are: exploration, production, refining, distribution, marketing, power generation, and trading. It’s one of the world’s seven oil ‘supermajors’, and from 1988-2015, it was responsible for 1.53% of global industrial greenhouse gas emissions.
Greenwashing an oil company
It therefore may surprise you that in 2021, BP was ranked as the 5th most environmentally responsible company out of 120 in resource extraction in the Arctic. Clearly, that company made some big changes from 2015 to 2021. Why? Because BP is a public company – meaning the public can buy shares in it and through voting rights control its direction.
Currently, big investor groups who hold shares on individual’s behalf, such as Blackrock, are demanding that companies demonstrate that they are on a path to a ‘sustainable future’. This means companies (like BP) are trying to transition into other forms of energy. One way they do this is sell business lines to private capital, so oil production is still happening to meet demand. But often these private companies are not subject to the same shareholder pressure. BP has sold their petrochemical business, to INEOS – the UK’s largest private company, and one of the world’s largest chemical companies.
In some ways, it’s good transparent companies like BP are being encouraged to invest in renewable sources. Protesters and shareholders will be able to sleep, knowing their company isn’t partly responsible for polar bears losing their homes.
What’s our part in it?
However, the truth lots of us don’t want to face is that right now, we need oil. We are still reliant on oil, and it still needs to be produced. So, is it better that BP does it, under our watchful eye? Or is it that international companies, out of sight, are drilling for the oil in possibly more destructive ways? Trying to force public companies to stop producing oil, isn’t always as effective as it seems. Especially if it is simply greenwashing the public companies, moving activity rather than changing it.
So, what can we do? As educated individuals, we want to help shape our world for the future. The best thing to do, is reduce demand for oil – change people’s behaviour or find alternatives. We should invest in companies using alternatives to oil. We can buy their products or reducing their cost of capital by investing in those companies. When demand for oil diminishes, companies will automatically produce less, and find alternative ways to make money. As citizens, we have the power to prioritise renewable energy, and companies will quickly follow.
Science is quickly finding new ways to produce energy, which isn’t damaging our environment. But for now, the road to clean energy isn’t an easy one. We must sacrifice the products we like that are not essential, and our easier lifestyles, in the hope of a more sustainable future.