Editor’s note: Brownsville, Texas – “Element Fuels has received the necessary permitting to construct and operate a refinery capable of producing in excess of 160,000 barrels, or approximately 6.7 million gallons, per day of finished gasoline, diesel, and jet fuel,” said Founder and Co-CEO John Calce. “A permit for a greenfield refinery of this size, scope, and functionality has not been granted in the United States since the 1970’s. This speaks to the innovative approaches we are taking to address climate and sustainability concerns in cleaner, greener ways that are new to the refinery space.”
Though Marathon was built in 1976, it is considered the last significant oil refinery built in the United States.
That’s partly because of community opposition to new refineries, a position that people in Garyville understood well last month.
“It’s hard to explain the mixed emotions that come with living in the conditions that we have been forced to live in here,” said Robert Taylor, who lives in the vicinity of the plant, in the community of Reserve. “Why are we designated as a sacrifice zone?”
“Though Marathon was built in 1976, it is considered the last significant oil refinery built in the United States.
That’s partly because of community opposition to new refineries, a position that people in Garyville understood well last month.
“It’s hard to explain the mixed emotions that come with living in the conditions that we have been forced to live in here,” said Robert Taylor, who lives in the vicinity of the plant, in the community of Reserve. “Why are we designated as a sacrifice zone?”
Taylor grew up among the sugarcane fields of this part of St. John the Baptist Parish. The sugar mill where his parents worked once stood on the very spot where the Marathon Refinery was built.
During Taylor’s lifetime, the entire area switched focus, from cane to crude.
For decades now, he has fought the petrochemical plants here, in what’s become known as Cancer Alley. In 2015, Taylor founded the Concerned Citizens of St. John the Baptist Parish, after a National Air Toxics Assessment revealed that residents of the parish have the highest lifetime cancer risk in the nation because of emissions of chloroprene and ethylene oxide from nearby plants.
Before Marathon opened 47 years ago, Taylor said, a small community called Lions stood on that plot of land. Townspeople would gather on Sundays at Zion Travelers Baptist Church, which had its own tidy little cemetery.
But in the mid-1970s, after a whir of pounded beams and sky-high metal towers, tied together by a maze of pipes, Marathon took over the grounds and built what became the nation’s second-largest refinery.”
California losing another refinery, impacting AZ and NV; fuel shortages possible
Promotional material from the Husky Friends campaign. (Modest Proposals)
“We were wondering if Mayor Paine is available?” I asked. My words were muffled by the dog mascot costume I was wearing. Next to me was a canvasser and the two camera operators filming us. We were at City Hall in Superior, Wisconsin on April 25 to spread the word about Husky Friends — the name we’d given to a so-called community outreach initiative from Husky Energy, owner of the local refinery that exploded in 2018 and triggered an evacuation of much of the city. With the refinery possibly reopening, Husky Friends was there to “assuage residents’ concerns.”
“Oh sure! Let me see if he has a moment,” the receptionist responded.
Wait, what!? This wasn’t supposed to be happening. We thought it’d be interesting to get footage of a dog mascot trying to meet the mayor, but we never thought he’d actually come out and talk with us.
He stepped out of his office, and we haltingly introduced Husky Friends, explaining that we were there to “address some of the community concerns about the use of hydrogen fluoride,” or HF — a lethal chemical used in oil refining that was almost released during the 2018 explosion, putting the entire populations of both Superior and nearby Duluth, Minnesota at grave risk. Cenovus Energy, which recently acquired Husky Energy, is rebuilding the refinery and intends to continue using the chemical.
Mayor Paine took a pamphlet, thanked us for coming and went back into his office.
The footage of this meeting would later show up on evening news segments on the local CBS and NBC affiliates in Duluth. However, by this time, the truth about Husky Friends had been exposed. The news correctly reported that it was actually just an elaborate satire — concocted by my activist group, Modest Proposals, in collaboration with local residents in an attempt to draw attention to the danger of the Superior Refinery.
The day before our hoax was exposed, thousands of postcards were distributed to residents living close to the refinery. They advertised Husky Friends and directed them to a website where anyone in the “friend zone” could sign up to receive a text warning 15 minutes after any HF release (while noting the real danger was within 10 minutes of a leak). The website also described a “neighbor compassion kit” featuring a burn cream for a chemical that can more-or-less kill on contact and a “Kid’s Room Gas Detector” that would play nursery rhymes if it detected HF.
We announced Husky Friends in a press release the following day, the anniversary of the explosion, and stayed in character until inevitably being exposed. Local TV stations, Wisconsin Public Radio, and numerous smaller newspapers all ran stories. We then capitalized further by sending repeated rounds of postcards on subsequent days which finally goaded Cenovus into circulating their own mailer to Superior residents denouncing our “inappropriate tactics” and reassuring them that the refinery was safe — essentially re-broadcasting our message for us.
“Gibraltar Explosion” by Josh13770 is licensed under CC BY 2.0.
A wider problem and opportunity
Husky Friends was a locally-targeted action that re-animated a pressing issue long since faded from local headlines — thereby giving residents against the re-opening an opportunity to take advantage of its publicity. Not every city needs a dog mascot to talk to their mayor, but dedicating resources to local organizing efforts aimed at closing down oil refineries is something the climate movement should prioritize. There are huge opportunities to address the poisonous injustice of refineries’ sacrifice zones, and to strike a critical blow against the oil industry in the midst of the climate emergency.
Husky Friends may have used humor, but its message about the danger refineries pose was deadly serious — and by no means exclusive to Superior and Duluth. Approximately a third of refineries in the United States currently use hydrogen fluoride, many of them near population centers. Several have even had near-miss accidents in the past few years. Refineries also spew carcinogens, neurotoxins and hazardous metals onto surrounding communities, leading to a litany of health problems, including cancer, chronic respiratory illness and birth defects. All this pollution creates sacrifice zones, with people living around them frequently being low income, BIPOC communities — many of whom lack the resources to move. The danger refineries pose has been exacerbated in recent years, as many of them are aging facilities with decaying equipment in dire need of expensive repairs that can take years. More accidents are “just a matter of time,” according to the U.S. chemical safety board.
Despite its urgent need, funding has been hard for the refining industry to come by since many investors don’t see a long-term market for fossil fuels. According to energy economist Ed Hirs from the University of Houston, “Just getting the equipment you need could take three years. Electric vehicles might already make up 20 percent of the car market by then. You could find yourself investing a bunch of cash to rebuild a refinery that may not be needed for long.” Investor hesitancy naturally translates into a lack of funding for building any new refineries. There has not been a new refinery with significant capacity built since 1977, and even the CEO of Chevron has stated that “I don’t think you are ever going to see a refinery built again in this country.”
In the midst of the climate emergency, we need to look for the most effective use of movement resources to end fossil fuels as quickly as possible. The wariness of investors to finance necessary repairs make refineries a critical strategic vulnerability. Every refinery closed will likely never reopen. Every refinery closed can be an end to part of the vast fossil fuel apparatus destroying our planet.
How we get there
Any successful campaign needs to be specific about how it achieves its goals. A mentor of mine has a useful metaphor to break down campaigning specifics: If a campaign is a war, it needs an air war, and a ground war. Air war is about seizing or changing the narrative — much like Husky Friends did. Ground war is building power through relational organizing and grassroots base building. Air war creates the initiative and the ground war utilizes it to build organizations capable of wielding power. Successful campaigning needs both.
The air war gets waged using society’s means of information distribution, and its mediums are the tools of any political campaign: postcards, lawn signs, PR and perhaps most importantly advertising. The fossil fuel industry understands the impact of these tools and uses these tactics to garner local support. Enbridge Energy ran a plethora of ads in local newspapers for years to shape the narrative toward supporting its Line 3 oil sands pipeline in Northern Minnesota. Looking at these ads, you’d think that the pipeline had the support of local Indigenous tribes and was a boon for local jobs and the economy — when in fact many tribes fiercely resisted the pipeline, most of the workers came from out of state, and the pipeline brought an influx of harassment, violence and sex trafficking.
Environmental groups who opposed the pipeline had trouble getting enough resources to counter with their own message, which had the result of allowing Enbridge to monopolize critical channels of information distribution and opportunities to shape public perception. Even in heavily Trump-supporting Northern Minnesota such messaging could have had an effect. Citizens of Park Rapids cared enough about their water to take their city council to task over selling Enbridge water for Line 3 construction in the middle of 2021’s historic drought. If information about the threat that Line 3 poses to their water, and Enbridge’s abysmal safety record was more widely disseminated, it’s not hard to imagine more local residents joining the struggle.
None of this, however, is to fault the Indigenous leadership and brave frontline activists who fought Line 3. Instead, it’s a call to consider what they might have accomplished if they had more resources at their disposal to use the same local channels of information distribution that their opponents effectively weaponized against them.
Building power
As anyone who has been part of a volunteer based organization can tell you, there is always too much to do, never enough time and never enough people to do it. That’s why we need to find a way to send help in the form of others who can devote their time and labor to these groups.
Such help could take shape in a variety of ways, depending on the status of local efforts. If local organizations are already well developed, sending people to do canvassing, phone calls and the endless clerical minutiae involved in advocacy can free up critical time resources for frontline activists. If they need more of a boost, experienced organizers can be sent in as well to advise and facilitate residents actualizing power with grassroots base building, identifying and developing leaders, and all the nuts and bolts of community organizing.
Organizing and directing community power is a skill — and like all skills, experience is the best teacher. Frontline communities should be able to benefit from and utilize the knowledge accumulated by other successful frontline organizers and activists. People living in sacrifice zones deserve a livable environment and deserve assistance in building the power necessary to create that livable environment.
However, when sending personnel to frontline communities, organizers must always understand that they are a facilitator for collective needs — not a leader — and therefore act accordingly. The climate movement has been historically staffed by people with privilege, but by dedicating financing and personnel to disadvantaged communities, they can bring more voices, especially the voices of people oppressed by the fossil fuel industry, into the larger struggle.
Targeting the right decision maker
Every refinery in the United States is operating under an air quality permit mandated by Title 5 of the Clean Air Act. These permits are required by the federal government, but are administered at the state or local level, and are supposed to come up for renewal every five years. There are two possible decision makers to pressure. One of them is state and local governments, who can be pressured not to renew, or to outright revoke the permits. The other is the EPA, which holds veto power over any Title 5 permit. The Biden administration has pledged to incorporate environmental justice into its policy decisions, and whatever its shortcomings on climate action may be, at the end of the day they are movable on environmental issues.
Whether the best pressure point is federal, state or local governments will depend on which is most effective for each campaign. For example, the people around the oil refinery in Tacoma, Washington may want to pressure Jay Inslee, their climate conscious governor. Residents living around Exxon’s Baytown Refinery in Baytown, Texas may want to pressure a more pliable federal government, rather than their conservative state government.
The financial vulnerability of oil refineries opens the door to another pressure point the environmental movement can exploit, and one in which national and larger organizations can take a larger role. Defunding and divestment campaigns have been previously directed at specific fossil fuel infrastructure projects, notably the Dakota Access Pipeline, Line 3 and the ongoing campaign against the East African Crude Oil Pipeline. With so many refineries in need of expensive, time-consuming repairs — as well as banks being hesitant to fund them — campaigns can direct their attention toward pressuring financial institutions to withhold funding or drop their support.
Frontline communities with powerful and resilient community organizations will also be better equipped to take ownership of a hopefully fossil free future, rather than being left behind when the refineries inevitably close. The economic devastation left in the wake of coal’s decline is a telling example of what can happen to workers and communities who are dependent on a fading industry. With these organizations they will be better equipped to push for equitable and sustainable economic development, as well as public investment policies from the municipal, state or federal government. They will also be better positioned to receive grant money from nonprofits and foundations. By helping build these organizations, the environmental movement can facilitate a just transition from below — with empowered local communities taking ownership of a fossil free future.
Jim Haugen (pen name) got his start in activism campaigning against tech companies with Extinction Rebellion NYC. He then co-founded Modest Proposals, an activist collective that uses satire, humor and other creative tactics to create positive change.
Editor’s note: “What if you could save the climate while continuing to pollute it?” If that sounds too good to be true, that’s because it is. But corporations across the globe are increasingly trying to answer this question with the same shady financial tool: carbon offsets.
To understand what’s going on with the carbon market, it’s important to know the terms(term-oil), vocabulary and organizations involved. For starters, a carbon credit is different from a carbon offset. A carbon credit represents a metric ton of carbon dioxide or the equivalent of other climate-warming gases kept out of the atmosphere. If a company (or individual, or country) uses that credit to compensate for its emissions — perhaps on the way to a claim of reduced net emissions — it becomes an offset.
“We need to pay countries to protect their forests, and that’s just not happening,” Mulder said. But the problem with carbon credits is they are likely to be used as offsets “to enable or justify ongoing emissions,” she said. “The best-case scenario is still not very good. And the worst-case scenario is pretty catastrophic, because we’re just locking in business as usual.”
“Offsetting via carbon credits is another way to balance the carbon checkbook. The idea first took hold in the 1980s and picked up in the following decade. Industrialized countries that ratified the 1997 Kyoto Protocol became part of a mandatory compliance market, in which a cap-and-trade system limited the quantity of greenhouse gases those countries could emit. An industrialized country emitting over its cap could purchase credits from another industrialized country that emitted less than its quota. Emitters could also offset CO2 by investing in projects that reduced emissions in developing countries, which were not required to have targets.”
Yet, the truth is far darker. Far from being an effective tool, carbon credits have become a convenient smokescreen that allows polluters to continue their damaging practices unchecked. As a result, they’re hastening our descent into environmental and societal breakdown.
The entire framework of carbon credits is based on a single, fatal assumption: that “offsets” can substitute for actual emissions reductions. But instead of cutting emissions, companies and countries are using carbon credits as a cheap alternative to meaningful action. This lack of accountability is pushing us closer to catastrophic climate tipping points, with the far-reaching impacts of climate change and resource depletion threatening the lives of everyone on this planet.
Brazilian prosecutors are calling for the cancellation of the largest carbon credit deal in the Amazon Rainforest, saying it breaks national law and risks harming Indigenous communities.
While marketed as a solution to mitigate climate change, carbon markets have been criticized as a facade for continued extractivism and corporate control of minerals in Africa.
Africa’s vast forests, minerals, and land are increasingly commodified under the guise of carbon offset projects. Global corporations invest in these projects, claiming to “offset” their emissions while continuing business as usual in their countries. This arrangement does little to address emissions at the source and increase exploitation in Africa, where land grabs, displacement, and ecological degradation often accompany carbon offset schemes.
“But beginning in January 2023, The Guardian, together with other news organizations, have published a series of articles that contend the majority of carbon credit sales in their analysis did not lead to the reduction of carbon in the atmosphere. The questions have centered on concepts such as additionality, which refers to whether a credit represents carbon savings over and above what would have happened without the underlying effort, and other methods used to calculate climate benefits.
The series also presented evidence that a Verra-approved conservation project in Peru promoted as a success story for the deforestation it helped to halt resulted in the displacement of local landowners. Corporations like Chevron, the second-largest fossil fuel company in the U.S., purchase carbon credits to bolster their claims of carbon neutrality. But an analysis by the watchdog group Corporate Accountability found that these credits were backed by questionable carbon capture technologies and that Chevron is ignoring the emissions that will result from the burning of the fossil fuels it produces.”
Since 2009, Tesla has had a tidy little side hustle selling the regulatory credits it collects for shifting relatively huge numbers of EVs in markets like China, Europe and California. The company earns the credits selling EVs and then sells them to automakers whose current lineup exceeds emission rules set out in certain territories. This business has proven quite lucrative for Tesla, as Automotive News explains:
The Elon Musk-led manufacturer generated $1.79 billion in regulatory credit revenue last year, an annual filing showed last week. That brought the cumulative total Tesla has raked in since 2009 to almost $9 billion.
“Tesla shouldn’t be considered a car manufacturer: they’re a climate movement profiteer. Most of their profits come from carbon trading. Car companies would run afoul of government regulations and fines for producing high emissions vehicles, but thanks to carbon credits, they can just pay money to companies like Tesla to continue churning out gas guzzlers. In other words, according to Elon Musk’s business model: no gas guzzlers, no Tesla.” – Peter Gelderloos
A LICENSE TO POLLUTE
The carbon offset market is an integral part of efforts to prevent effective climate action
In early November 2023, shortly before the COP28 summit opened in Dubai, a hitherto obscure UAE firm attracted significant media attention around news of their prospective land deals in Africa.
Reports suggested that Blue Carbon—a company privately owned by Sheikh Ahmed al-Maktoum, a member of Dubai’s ruling family—had signed deals promising the firm control over vast tracts of land across the African continent. These deals included an astonishing 10 percent of the landmass in Liberia, Zambia and Tanzania, and 20 percent in Zimbabwe. Altogether, the area equaled the size of Britain.
Blue Carbon intended to use the land to launch carbon offset projects, an increasingly popular practice that proponents claim will help tackle climate change. Carbon offsets involve forest protection and other environmental schemes that are equated to a certain quantity of carbon “credits.” These credits can then be sold to polluters around the world to offset their own emissions. Prior to entering into the negotiations of the massive deal, Blue Carbon had no experience in either carbon offsets or forest management. Nonetheless the firm stood to make billions of dollars from these projects.
Environmental NGOs, journalists and activists quickly condemned the deals as a new “scramble for Africa”—a land grab enacted in the name of climate change mitigation. In response, Blue Carbon insisted the discussions were merely exploratory and would require community consultation and further negotiation before formal approval.
Regardless of their current status, the land deals raise concerns that indigenous and other local communities could be evicted to make way for Blue Carbon’s forest protection plans. In Eastern Kenya, for example, the indigenous Ogiek People were driven out of the Mau Forest in November 2023, an expulsion that lawyers linked to ongoing negotiations between Blue Carbon and Kenya’s president, William Ruto. Protests have also followed the Liberian government’s closed-door negotiations with Blue Carbon, with activists claiming the project violates the land rights of indigenous people enshrined within Liberian law. Similar cases of land evictions elsewhere have led the UN Special Rapporteur on the Rights of Indigenous Peoples, Francisco Calí Tzay, to call for a global moratorium on carbon offset projects.
Beyond their potentially destructive impact on local communities, Blue Carbon’s activities in Africa point to a major shift in the climate strategies of Gulf states. As critics have shown, the carbon offsetting industry exists largely as a greenwashing mechanism, allowing polluters to hide their continued emissions behind the smokescreen of misleading carbon accounting methodologies while providing a profitable new asset class for financial actors. As the world’s largest exporters of crude oil and liquified natural gas, the Gulf states are now positioning themselves across all stages of this new industry—including the financial markets where carbon credits are bought and sold. This development is reconfiguring the Gulf’s relationships with the African continent and will have significant consequences for the trajectories of our warming planet.
False Accounting and Carbon Laundering
There are many varieties of carbon offset projects. The most common involves the avoided deforestation schemes that make up the bulk of Blue Carbon’s interest in African land. In these schemes, land is enclosed and protected from deforestation. Carbon offset certifiers—of which the largest in the world is the Washington-based firm, Verra—then assess the amount of carbon these projects prevent from being released into the atmosphere (measured in tons of CO2). Once assessed, carbon credits can be sold to polluters, who use them to cancel out their own emissions and thus meet their stated climate goals.
Superficially attractive—after all, who doesn’t want to see money going into the protection of forests?—such schemes have two major flaws. The first is known as “permanence.” Buyers who purchase carbon credits gain the right to pollute in the here and now. Meanwhile, it takes hundreds of years for those carbon emissions to be re-absorbed from the atmosphere, and there is no guarantee that the forest will continue to stand for that timeframe. If a forest fire occurs or the political situation changes and the forest is destroyed, it is too late to take back the carbon credits that were initially issued. This concern is not simply theoretical. In recent years, California wildfires have consumed millions of hectares of forest, including offsets purchased by major international firms such as Microsoft and BP. Given the increasing incidence of forest fires due to global warming, such outcomes will undoubtedly become more frequent.
Again, this estimate depends on an unknowable future, opening up significant profit-making opportunities for companies certifying and selling carbon credits.
The second major flaw with these schemes is that any estimation of carbon credits for avoided deforestation projects rests on an imaginary counterfactual: How much carbon would have been released if the offset project were not in place? Again, this estimate depends on an unknowable future, opening up significant profit-making opportunities for companies certifying and selling carbon credits. By inflating the estimated emissions reductions associated with a particular project, it is possible to sell many more carbon credits than are actually warranted. This scope for speculation is one reason why the carbon credit market is so closely associated with repeated scandals and corruption. Indeed, according to reporting in the New Yorker, after one massive carbon fraud was revealed in Europe, “the Danish government admitted that eighty per cent of the country’s carbon-trading firms were fronts for the racket.”[1]
These methodological problems are structurally intrinsic to offsetting and cannot be avoided. As a result, most carbon credits traded today are fictitious and do not result in any real reduction in carbon emissions. Tunisian analyst Fadhel Kaboub describes them as simply “a license to pollute.”[2] One investigative report from early 2023 found that more than 90 percent of rainforest carbon credits certified by Verra were likely bogus and did not represent actual carbon reductions. Another study conducted for the EU Commission reported that 85 percent of the offset projects established under the UN’s Clean Development Mechanism failed to reduce emissions. A recent academic study of offset projects across six countries, meanwhile, found that most did not reduce deforestation, and for those that did, the reductions were significantly lower than initially claimed. Consequently, the authors conclude, carbon credits sold for these projects were used to “offset almost three times more carbon emissions than their actual contributions to climate change mitigation.”[3]
Despite these fundamental problems—or perhaps because of them—the use of carbon offsets is growing rapidly. The investment bank Morgan Stanley predicts that the market will be worth $250 billion by 2050, up from about $2 billion in 2020, as large polluters utilize offsetting to sanction their continued carbon emissions while claiming to meet net zero targets. In the case of Blue Carbon, one estimate found that the amount of carbon credits likely to be accredited through the firm’s projects in Africa would equal all of the UAE’s annual carbon emissions. Akin to carbon laundering, this practice allows ongoing emissions to disappear from the carbon accounting ledger, swapped for credits that have little basis in reality.
Monetizing Nature as a Development Strategy
For the African continent, the growth of these new carbon markets cannot be separated from the escalating global debt crisis that has followed the Covid-19 pandemic and the war in Ukraine. According to a new database, Debt Service Watch, the Global South is experiencing its worst debt crisis on record, with one-third of countries in Sub-Saharan Africa spending over half their budget revenues on servicing debt. Faced with such unprecedented fiscal pressures, the commodification of land through offsetting is now heavily promoted by international lenders and many development organizations as a way out of the deep-rooted crisis.
The African Carbon Markets Initiative (ACMI), an alliance launched in 2022 at the Cairo COP27 summit, has emerged as a prominent voice in this new development discourse. ACMI brings together African leaders, carbon credit firms (including Verra), Western donors (USAID, the Rockefeller Foundation and Jeff Bezos’ Earth Fund) and multilateral organizations like the United Nations Economic Commission for Africa. Along with practical efforts to mobilize funds and encourage policy changes, ACMI has taken a lead role in advocating for carbon markets as a win-win solution for both heavily indebted African countries and the climate. In the words of the organization’s founding document, “The emergence of carbon credits as a new product allows for the monetization of Africa’s large natural capital endowment, while enhancing it.”[4]
ACMI’s activities are deeply tied to the Gulf. One side to this relationship is that Gulf firms, especially fossil fuel producers, are now the key source of demand for future African carbon credits. At the September 2023 African Climate Summit in Nairobi, Kenya, for example, a group of prominent Emirati energy and financial firms (known as the UAE Carbon Alliance) committed to purchasing $450 million worth of carbon credits from ACMI over the next six years. The pledge immediately confirmed the UAE as ACMI’s biggest financial backer. Moreover, by guaranteeing demand for carbon credits for the rest of this decade, the UAE’s pledge helps create the market today, driving forward new offset projects and solidifying their place in the development strategies of African states. It also helps legitimize offsetting as a response to the climate emergency, despite the numerous scandals that have beset the industry in recent years.
Saudi Arabia is likewise playing a major role in pushing forward carbon markets in Africa. One of ACMI’s steering committee members is the Saudi businesswoman, Riham ElGizy, who heads the Regional Voluntary Carbon Market Company (RVCMC). Established in 2022 as a joint venture between the Public Investment Fund (Saudi Arabia’s sovereign wealth fund) and the Saudi stock exchange, Tadawul, RVCMC has organized the world’s two largest carbon auctions, selling more than 3.5 million tons worth of carbon credits in 2022 and 2023. 70 percent of the credits sold in these auctions were sourced from offset projects in Africa, with the 2023 auction taking place in Kenya. The principal buyers of these credits were Saudi firms, led by the largest oil company in the world, Saudi Aramco.
Beyond simply owning offset projects in Africa, the Gulf states are also positioning themselves at the other end of the carbon value chain: the marketing and sale of carbon credits to regional and international buyers.
The Emirati and Saudi relationships with ACMI and the trade in African carbon credits illustrate a notable development when it comes to the Gulf’s role in these new markets. Beyond simply owning offset projects in Africa, the Gulf states are also positioning themselves at the other end of the carbon value chain: the marketing and sale of carbon credits to regional and international buyers. In this respect, the Gulf is emerging as a key economic space where African carbon is turned into a financial asset that can be bought, sold and speculated upon by financial actors across the globe.
Indeed, the UAE and Saudi Arabia have each sought to establish permanent carbon exchanges, where carbon credits can be bought and sold just like any other commodity. The UAE set up the first such trading exchange following an investment by the Abu Dhabi-controlled sovereign wealth fund, Mubadala, in the Singapore-based AirCarbon Exchange (ACX) in September 2022. As part of this acquisition, Mubadala now owns 20 percent of ACX and has established a regulated digital carbon trading exchange in Abu Dhabi’s financial free zone, the Abu Dhabi Global Market. ACX claims the exchange is the first regulated exchange of its kind in the world, with the trade in carbon credits beginning there in late 2023. Likewise, in Saudi Arabia the RVCMC has partnered with US market technology firm Xpansiv to establish a permanent carbon credit exchange set to launch in late 2024.
Whether these two Gulf-based exchanges will compete or prioritize different trading instruments, such as carbon derivatives or Shariah-compliant carbon credits, remains to be seen. What is clear, however, is that major financial centers in the Gulf are leveraging their existing infrastructures to establish regional dominance in the sale of carbon. Active at all stages of the offsetting industry—from generating carbon credits to purchasing them—the Gulf is now a principal actor in the new forms of wealth extraction that connect the African continent to the wider global economy.
Entrenching a Fossil-Fueled Future
Over the past two decades, the Gulf’s oil and especially gas production has grown markedly, alongside a substantial eastward shift in energy exports to meet the new hydrocarbon demand from China and East Asia. At the same time, the Gulf states have expanded their involvement in energy-intensive downstream sectors, notably the production of petrochemicals, plastics and fertilizers. Led by Saudi Aramco and the Abu Dhabi National Oil Company, Gulf-based National Oil Companies now rival the traditional Western oil supermajors in key metrics such as reserves, refining capacity and export levels.
Rather, much like the big Western oil companies, the Gulf’s vision of expanded fossil fuel production is accompanied by an attempt to seize the leadership of global efforts to tackle the climate crisis.
In this context—and despite the reality of the climate emergency—the Gulf states are doubling down on fossil fuel production, seeing much to be gained from hanging on to an oil-centered world for as long as possible. As the Saudi oil minister vowed back in 2021, “every molecule of hydrocarbon will come out.”[5] But this approach does not mean the Gulf states have adopted a stance of head-in-the-sand climate change denialism. Rather, much like the big Western oil companies, the Gulf’s vision of expanded fossil fuel production is accompanied by an attempt to seize the leadership of global efforts to tackle the climate crisis.
One side to this approach is their heavy involvement in flawed and unproven low carbon technologies, like hydrogen and carbon capture. Another is their attempts to steer global climate negotiations, seen in the recent UN climate change conferences, COP27 and COP28, where the Gulf states channeled policy discussions away from effective efforts to phase out fossil fuels, turning these events into little more than corporate spectacles and networking forums for the oil industry.
The carbon offset market should be viewed as an integral part of these efforts to delay, obfuscate and obstruct addressing climate change in meaningful ways. Through the deceptive carbon accounting of offset projects, the big oil and gas industries in the Gulf can continue business as usual while claiming to meet their so-called climate targets. The Gulf’s dispossession of African land is key to this strategy, ultimately enabling the disastrous specter of ever-accelerating fossil fuel production.
This statement, published on July 2, 2024, responds to the growing efforts of corporations to greenwash their greenhouse gas emissions by buying “credits” for supposed emission reductions elsewhere. It is signed by more than 80 leading civil society organizations.
Editor’s note: “Most people don’t realize that part of gas extraction is a liquid condensate, the origin of plastics, which is being pumped, defying Climate Chaos, via the maze of fracking pipelines to the Gulf Coast, where the US is set on cornering the world plastics market, as well as shipping the LNG gas it has forced on its European vassals.” In a bid to become a world plastics monopoly, Exxon quietly plans to erect a new $8.6 billion plastics plant. The proposal calls for a steam cracker, a facility that uses oil and natural gas to make ethylene and propylene — the chemical building blocks of plastic. “Besides ethylene and propylene, steam crackers produce climate pollution and hazardous chemicals like ammonia, benzene, toluene, and methanol.”
“Where Exxon is going to put their bloody plant is smack-dab in front of [what will be] one of the largest oyster farms in Texas,” said Wilson, who is not convinced that any plastics factory can operate without polluting. She noted that Formosa has already violated its settlement agreement nearly 800 times, racking up over $25 million in fines. “Exxon is going to be exactly like Formosa.”
“We have been cleaning the piss out of [Cox Creek], and this is the very place where Exxon is going to try to put its plastics plant,” Wilson, who lives in nearby Seadrift, said of the facility’s potential location. “You see this nightmare of another plant, trying to do the very same thing.”
A Shrimper’s Crusade Pays Big Dividends on a Remote Stretch of Texas Coastline
Five years after Diane Wilson’s landmark settlement with Formosa Plastics, money flows to “the bay and the fishermen.”
By Dylan Baddour
December 24, 2024
This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy and the environment. Sign up for their newsletter here.
PORT LAVACA, Texas—Few men still fish for a living on the Gulf Coast of Texas. The work is hard and pay is meager. In the hearts of rundown seaside towns, dilapidated harbors barely recall the communities that thrived here generations ago.
But at the docks of Port Lavaca, one group of humble fishermen just got a staggering $20 million to bring back their timeless way of life. They’re buying out the buyer of their catch, starting the largest oyster farm in Texas and dreaming big for the first time in a long time.
“We have a lot of hope,” said Jose Lozano, 46, who docks his oyster boats in Port Lavaca. “Things will get better.”
It’s all thanks to one elder fisherwoman’s longshot crusade against the petrochemical behemoth across the bay, and her historic settlement in 2019. Diane Wilson, a fourth-generation shrimper from the tiny town of Seadrift, took on a $250 billion Taiwanese chemical company, Formosa Plastics Corp., and won a $50 million trust fund, the largest sum ever awarded in a civil suit under the Clean Water Act.
Now, five years later, that money is beginning to flow into some major development projects on this mostly rural and generally overlooked stretch of Texas coastline. Through the largest of them, the Matagorda Bay Fishing Cooperative, formed in February this year, Wilson dreams of rebuilding this community’s relationship with the sea and reviving a lifestyle that flourished here before global markets cratered the seafood industry and local economies shifted to giant chemical plants.
“I refuse to believe it’s a thing of the past,” said Wilson, 76, who lives in a converted barn, down a dirt road, amid a scraggle of mossy oak trees. “We’re going to put money for the fishermen. They’re not going to be destroyed.”
The fishing cooperative has only just begun to spend its $20 million, Wilson said. It’s the largest of dozens of projects funded by her settlement agreement. Others include a marine science summer camp at the Port Lavaca YMCA, a global campaign to document plastic pollution from chemical plants, a $500,000 study of mercury pollution in Lavaca Bay and the $10 million development of a local freshwater lake for public access.
“They are doing some wonderful things,” said Gary Reese, a Calhoun County commissioner. He also received grants from the fund to build a pier and a playground pavilion at other county parks.
The fund resulted from a lawsuit Wilson filed in 2017 under the Clean Water Act, which enables citizens to petition for enforcement of environmental law where state regulators have failed to act. By gathering evidence from her kayak over years, Wilson demonstrated that Formosa had routinely discharged large amounts of plastic pellets into local waterways for decades, violating language in its permits.
These sorts of lawsuits typically result in settlements with companies that fund development projects, said Josh Kratka, managing attorney at the National Environmental Law Center in Boston. But seldom do they come anywhere close to the dollar amount involved in Wilson’s $50 million settlement with Formosa.
“It’s a real outlier in that aspect,” Kratka said.
For example, he said, environmental organizations in Texas sued a Shell oil refinery in Deer Park and won a $5.8 million settlement in 2008 that funded an upgrade of a local district’s school bus fleet and solar panels on local government buildings. In 2009 groups sued a Chevron Phillips chemical plant in Baytown and won a $2 million settlement in 2009 that funded an environmental health clinic for underserved communities.
One reason for the scale of Wilson’s winning, Kratka said, was an unprecedented citizen effort to gather plastic pollution from the bays as evidence in court. While violations of permit limits are typically proven through company self-reporting, Wilson mobilized a small team of volunteers.
“This was done by everyday people in this community, that’s what built the case,” said Erin Gaines, an attorney who previously worked on the case for Texas RioGrande Legal Aid. “This had never been done before, but that doesn’t mean it can’t happen.”
Wilson’s settlement included much more than the initial $50 million payment. Formosa also agreed to clean up its own legacy plastic pollution and has so far spent $32 million doing so, according to case records. And the company committed to discharge no more plastic material from its Point Comfort complex—a standard which had never been applied to any plastics plants across the nation.
“They cannot believe I would do this for the bay and the fishermen. It’s my home and I completely refuse to give it to that company to ruin.”
Formosa consented to regular wastewater testing to verify compliance, and to penalties for violations. Now, three times a week, a specially engineered contraption analyzes the outflows at Formosa. Three times a week, it finds they are full of plastic. And three times a week, Formosa pays a $65,000 penalty into Wilson’s trust fund.
It’s small change for a company that makes about a billion dollars per year at its Point Comfort complex, or $2.7 million per day. To date, those penalty payments have totaled more than $24 million, in addition to the $50 million awarded in 2019.
The money doesn’t belong to Wilson, who has never been rich, and she never touches it. It goes into a fund called the Matagorda Bay Mitigation Trust, which is independently managed.
For the first $50 million, Wilson evaluated grant applications and allocated the money to government entities, registered nonprofits and public universities. Now an independent panel administers the fund.
Many locals who know her story assume that Wilson is rich now, she said. But she never got a penny of the settlement. She was never doing this for the money.
“They cannot believe I would do this for the bay and the fishermen,” she said. “It’s my home and I completely refuse to give it to that company to ruin.”
Formosa also writes grants for community development programs, although none of them approach the size of the Matagorda Bay Mitigation Trust.
In response to a query from Inside Climate News, the company provided a summary of its community spending over 30 years, including $2.4 million on local and regional environmental projects, $2 million for a new Memorial Medical clinic, $2 million to upgrade local water treatment systems, $2 million to an area food bank, $1.3 million for local religious organizations and $1.2 million on scholarships for high school seniors.
The company has contributed $6.3 million for regional roadway improvements, donated 19 houses to the Calhoun County Independent School District and built a classroom in restored wetlands. Its annual employee golf tournament raises $500,000 for United Way charities, and its national headquarters in New Jersey gives $1 million each year to local charities. In Point Comfort it has programs to plant trees, protect bees and restore monarch butterfly habitat.
“Formosa Plastics has always believed in giving back to the community and approximately 30 years ago established education, environmental, medical, religious and scholarship trusts,” the company said in a five-page statement.
Since the 2019 settlement, Formosa has taken steps to address environmental challenges and reduce the environmental impact at its Point Comfort complex, the company said.
Formosa has installed pollution control systems to reduce the release of plastic particles, has partnered with industry experts to develop better filtration methods and is monitoring emerging technologies for opportunities to improve environmental stewardship, it said. The Point Comfort complex has also improved stormwater drainage to reduce plastics in runoff, and is engaging with community advocates to identify sustainable solutions.
“We understand the importance of protecting the environment and the communities where we operate, and we remain steadfast in our commitment to transparency, accountability, and continuous improvement,” the statement said.
The Fishing Way of Life
Wilson fondly recalls the bustling fishing community of her youth in Seadrift, more than 60 years ago. There were hundreds of boats at the docks, surrounded by a town full of mechanics, welders, netmakers and fish houses.
They weren’t rich, Wilson said, but they were free. They answered to no one, except maybe game wardens. They had twilight every morning, the silence of the water, the adventure of the search, the thrill of the catch and a regular intimacy with spirits of the sea, sun, wind and sky.
“You are out there on that bay, facing the elements, making decisions,” Wilson said. “That is as close to nature as you can get.”
Over her life, she watched it all fall apart. There are no fish houses in Seadrift today. Almost all the old businesses were bulldozed or boarded up. Wilson’s own brothers took jobs at the giant petrochemical plants growing onshore. But every day off they spent back on the water.
Most people called her crazy, 30 years ago, when she started complaining about water pollution from Formosa. Powerful interests denounced her and no one defended her.
But Wilson never gave up speaking out against pollution in the bay.
“That bay is alive. She is family and I will fight for her,” Wilson said. “I think everyone else would let her be destroyed.”
Over years of persistent, rambunctious protests targeting Formosa, Wilson began to get calls from employees at the plant, asking to meet secretly in fields, pastures and beer joints to talk about what they’d seen. They told her about vast amounts of plastic dust and pellets washed down drains, and about the wastewater outfalls where it all ended up.
When Wilson started visiting those places, often only accessible by kayak, she began to find the substance for her landmark lawsuit, millions and millions of plastic pellets that filled waterways and marshes.
“Felt like Huck Finn out there, all that exploring,” she said.
In 2017, Wislon filed her petition in federal court, then continued collecting evidence for years before trial. It was the first case over plastic pellet pollution brought under the Clean Water Act, according to Amy Johnson, then a contract attorney with the nonprofit RioGrande Legal Aid and lead attorney for Wilson’s case.
Gathering Nurdles
Down the coast in Port Aransas, a researcher at the University of Texas Marine Science Institute named Jace Tunnell had just launched a project in 2018 to study water pollution from plastics manufacturing plants. At that time, little was known about the scale of releases of plastic pellets, also called nurdles, into the oceans from those industrial facilities.
The Nurdle Patrol, as Tunnell called it, was beginning on a shoestring budget to methodically collect and catalog the nurdles in hopes of getting a better picture of the problem. That’s when Tunnel, a fourth generation Gulf Coast native and a second generation marine scientist, heard about a fisherwoman who was also collecting nurdles up the coast.
He contacted Wilson, who shared her data. But Tunnell didn’t believe it. Wilson claimed to have gathered 30,000 nurdles in 10 minutes. Tunnell would typically collect up to 200 in that time. He drove out to see for himself and found, to his shock, that it was true.
“The nurdles were just pluming up back there,” Tunnell said. “It really was an eye opener for me of how bad Formosa was.”
At that time, Wilson and her small team of volunteers were pulling up huge amounts of plastic from the bay system and logging it as evidence.
In 2019, the case went to trial. At one point, she parked a pickup truck full of damp, stinky plastic outside the federal courthouse and brought the judge out to see. She also cited Nurdle Patrol’s scientific method for gathering pellets as a means to estimate overall discharges in the bay.
“Diane was able to use Nurdle Patrol data in the lawsuit to seal the deal,” Tunnell said.
Later that year, the judge ruled in Wilson’s favor, finding Formosa had violated its permit limits to discharge “trace amounts” of plastics thousands of times over decades.
Formosa opted to negotiate a settlement with Wilson rather than seek a court-ordered penalty. In December 2019, the two parties signed a consent decree outlining their agreement and creating the $50 million Matagorda Bay Mitigation Trust.
Funding Community Projects
Right away, Wilson signed over $1 million to the Nurdle Patrol, which Tunnell used over five years to build an international network with 23,000 volunteers and an online portal with the best data available on plastic nurdles in the oceans. They’ve also provided elementary and high schools with thousands of teaching kits about plastics production and water pollution.
“There’s no accountability for the industries that release this,” Tunnell said as he picked plastic pellets from the sand near his home on North Padre Island in early December. “Of course, Diane kind of changed that.”
The trust’s largest grant programs are still yet to take effect. Wilson allocated $10 million to Calhoun County to develop a 6,400 acre park around Green Lake, the second largest natural lake in Texas, currently inaccessible to the public.
The county will begin taking bids this month to build phase one of the project, which will include walking trails and birding stands, according to county commissioner Reese. Later they’ll build a parking lot and boat ramp.
The county brought this property in 2012 with hopes of making a park, but never had the money. Initially, county officials planned to build an RV park with plenty of pavement. But funding from Wilson’s trust forbade RVs and required a lighter footprint to respect the significant Native American and Civil War campsites identified on the property.
“It’ll be more of a back-to-nature thing,” Reese said. “It’s been a long time coming, we hope to be able to provide a quality facility for the public thanks to Matagorda Mitigation Trust.”
By far, the largest grant from the trust has gone to the fishermen. Wilson allocated $20 million to form a cooperative at the docks of Port Lavaca—an unlikely sum of money for seamen who struggle to feed their families well. Wilson dreamed that this money could help bring back the vanishing lifestyle that she loved.
The Fishermen
Today, most of the remaining commercial fishermen on this Gulf coast come from Mexico and have fished here for decades. It’s hard work without health insurance, retirement plans or guaranteed daily income. But it’s an ancient occupation that has always been available to enterprising people by the sea.
“It’s what we’ve done our whole life,” said Homero Muñoz, 48, a board member of the fishermen’s cooperative, who has worked the Texas coast since he was 19. “This is what we like to do.”
Lately it’s been more difficult than ever, he said. Declining vitality in the bays, widespread reef closures by Texas authorities and opposition from wealthy sportfishing organizations force the commercial fishermen to compete for shrinking oyster populations in small and distant areas. Then, the fishermen have little power to negotiate on low prices for their catch set by a few big regional buyers, who also own most of the dock space. The buyers distribute it at a markup to restaurants and markets across the county.
“There isn’t anyone who helps us,” said Cecilio Ruiz, a 58-year-old father of three who has fished the Texas coast since 1982.
To help the fishermen build a sustainable business, Wilson tapped the Federation of Southern Cooperatives, an organization based in Atlanta originally founded to help Black farmers and landowners form cooperatives in the newly de-segregated South. For FSC, it was an unprecedented offer.
“This is an amazing project, very historic,” said Terence Courtney, director of cooperative development and strategic initiatives at FSC.
Usually, money is the biggest obstacle for producers wanting to form a collectively owned business, Courtney said. He’d never seen a case where a donor put up millions of dollars to make it happen.
“Opportunities like this don’t come around often. I can’t think of another example,” Courtney said. “We saw this as something that history was compelling us to do.”
The Matagorda Bay Fishing Cooperative
In 2020 Courtney started traveling regularly to Port Lavaca, meeting groups of fishermen, assessing their needs, discussing the concept of a cooperative and studying feasibility.
The men, who speak primarily Spanish, had trouble understanding Courtney’s English at first. But they knew someone who could help: Veronica Briceño, the daughter of a late local fisherman known as Captain Ralph. As a child, she translated between English and Spanish around her father’s business and the local docks and harbors.
Briceño, a 40-year-old worker at the county tax appraisal office, was excited to hear about the effort. She’d learned to fish on her grandfather’s boat. Her father left her four boats and she couldn’t bring herself to sell them. She joined FSC as a volunteer translator for the project.
“These men, all they know how to do is really just work,” she said. “They were needing support from someone.”
A year later, FSC hired Briceño as project coordinator. They leased an old bait shop with dock space at the harbor in Port Lavaca and renovated it as an office. Then in February 2024 they officially formed the Matagorda Bay Fishing Cooperative, composed of 37 boat owners with 77 boats that employ up to 230 people.
Now Briceño has a desk at the office where she helps the fishermen with paperwork, permitting and legal questions while coordinating a growing list of contracts as the cooperative begins to spend big money.
Negotiations are underway for the cooperative to purchase a major local seafood buyer, Miller’s Seafood, along with its boats, dock space, processing operations and supply contracts for about $2 million.
“I hope they help carry it on,” said Curtis Miller, 63, the owner of Miller’s Seafood, which was founded by his uncle in the 1960s. “I would like to see them be able to succeed.”
Many of the cooperative members have worked for Miller’s Seafood during the last 40 years, he said. The company handles almost entirely oysters now and provides them wholesale to restaurants on the East Coast, Florida and in Texas.
The cooperative has also leased 60 acres of bay water from the Texas Parks and Wildlife Department to start the largest oyster farm in Texas, a relatively new practice here. FSC is now permitting the project with the Texas General Land Office and the U.S. Army Corps of Engineers.
“That might be the future of the industry,” said Miller. “It might be the next big thing.”
“It Can Be Revived”
At a recent meeting of the cooperative, the members discussed options for a $2.5 million purchase of more than 7,000 oyster cages to install on the new farm. They talked about plans to visit and study a working oyster farm. The cooperative is finalizing a marketing and distribution plan for the farmed oysters.
The project would give two acres to each oysterman to farm, and would finally do away with the frantic race to harvest the few available oyster areas before other boats do. Now, they’ll have a place of their own.
“To have our own farms, liberty to go to our own piece of water,” said Miguel Fierros, 44, a bearded, third-generation fisherman and father of three. “It’s a unique opportunity I don’t think we’ll ever get again.”
Briceño, the project coordinator, hopes that the practice of oyster farming will bring a new generation into the seafood industry here. Neither of her kids plan to make a living on the water like her father or grandfather, who always encouraged the family to find jobs with health insurance and retirement. Now her 21-year-old son works at Formosa, like many of his peers, as a crane operator.
Perhaps this cooperative, with its miraculous $20 million endowment, can realize the dream of a local fishing industry with dignified pay and benefits. If it goes well, Briceño said, maybe her grandkids will be fishermen someday.
“We’re going to get a younger crowd actually interested,” she said.
This project is just getting started. Most of their money still remains to be spent, and the fishermen have many ideas. They would like to buy a boat repair business to service their fleet, as well as a net workshop, and to open more oyster farms.
For Wilson, now an internationally recognized environmental advocate, this all just proves how much can be accomplished by a stubborn country woman with volunteer helpers and non-profit lawyers. Ultimately, she hopes these projects will help rebuild a fishing community and bring back the fishermen’s way of life.
For now, the program is only getting started.
“It can be revived,” Wilson said. “There is a lot of money left.”
Editor’s note: “MMA is methyl methacrylate, a chemical compound that was banned by the FDA in the 1970s for use in nail enhancements due to its potential health hazards,” Hanna says. Celebrity manicurist Julie Kandalec adds, “It’s an ingredient commonly found in acrylic liquids, called monomer.”
One of the easiest ways to check if there is MMA in your acrylic or nail supplies is to check the ingredient list of your products. It should not be listed as an ingredient in any reputable acrylic nail product. A few additional tips include: Smelling a very harsh odor when applying and filing your acrylic nails – some people say it smells like cat urine.
“Mitsubishi Chemical Group (MCG) has concluded a license agreement with SNF Group regarding MCG’s N-vinylformamide (NVF) manufacturing technology. NVF is a raw material of functional polymers. Using the manufacturing technology licensed under this agreement, SNF will start the commercial production of NVF at its new plant in Dunkirk, France as of this June. NVF is a monomer used as a material for papermaking chemicals, water treatment agents, and oil field chemicals.”
Environmental activists claim victory as Mitsubishi scraps $1.3 billion chemical plant in ‘Cancer Alley’
by Tristan Baurick, Verite News New Orleans
Environmental groups are claiming victory after Mitsubishi Chemical Group dropped plans for a $1.3 billion plant in the heart of Louisiana’s industrial corridor.
In the works for more than a decade, the chemical manufacturing complex would have been the largest of its kind in the world, stretching across 77 acres in Geismar, a small Ascension Parish community about 60 miles west of New Orleans. Tokyo-based Mitsubishi cited only economic factors when announcing the cancellation last week, but a recent report on the plant’s feasibility noted that growing community concern about air pollution could also hamper the project’s success.
“The frontline communities are fighting back, causing delays, and that amounts to money being lost,” said Gail LeBoeuf with Inclusive Louisiana, an environmental group focused on the industrial corridor along the Mississippi River known as Cancer Alley.
The nonprofit group Beyond Petrochemical declared the project’s failure a “major victory for the health and safety of Louisianans.”
According to Mitsubishi, the plant could have produced up to 350,000 tons per year of methyl methacrylate, or MMA, a colorless liquid used in the manufacture of plastics and a host of consumer products, including TVs, paint and nail polish.
The plant was expected to be a major polluter, releasing hundreds of tons per year of carbon monoxide, nitrogen oxides, volatile organic compounds and other harmful chemicals, according to its permit information.
Mitsubishi cited rising costs and waning demand for MMA as the reasons for dropping the project. In a statement, the company indicated the plant likely wouldn’t have enough MMA customers to cover “increases in capital investment stemming from inflation and other factors.”
In July, a report on the plant’s viability warned that a global oversupply of MMA and fierce local opposition made the project a “bad bet.”
Conducted by the Institute for Energy Economics and Financial Analysis, the report said that credit agencies are paying more attention to “community sentiment” about petrochemical projects, particularly in Louisiana. In Geismar and other parts of Cancer Alley, there’s a “disproportionately heavy concentration of polluting industrial facilities” and Mitsubishi could become “entangled in a decades-long dispute involving issues of racial inequality and environmental justice,” the IEEFA report said.
Geismar residents are surrounded by about a half-dozen large chemical facilities that emit harmful levels of air pollution. Of the more than 6,000 people who live within the three miles of the planned project site, about 40% are Black or Hispanic, and 20% are considered low-income, according to federal data.
“The air here is already so dirty that the kids can’t play outside anymore,” said Pamela Ambeau, Ascension Parish resident and member of the group Rural Roots Louisiana.
The proposed plant is the latest in a string of failed industrial projects in Cancer Alley. Since 2019, local activism was instrumental in halting the development of two large plastics complexes in St. James Parish and a grain export terminal in St. John the Baptist Parish. All three projects would have been built in historically Black and rural communities.
Mitsubishi’s project had the strong backing of Louisiana political leaders. In 2020, then-Gov. John Bel Edwards, a Democrat, praised the project as a “world-scale” chemical manufacturing facility that would create “quality jobs.”
Louisiana Economic Development predicted the plant would create 125 jobs with an average salary of $100,000 and another 669 “indirect jobs” in the region.
The state agency began courting Mitsubishi in 2016, offering the company worker recruitment and training assistance and a $4 million grant to offset construction costs.
In 2021, Mitsubishi applied for property tax abatement via the state’s Industrial Tax Exemption Program, or ITEP. The tax relief, which Louisiana has granted to several similar projects, was pending the plant’s construction and would have saved the company an estimated $17 million in its first year, according to LED.
The first of a series of project delays began in 2022 due to what Mitsubishi called “market volatilities.”
Mitsubishi appeared to be betting on generous state subsidies “while ignoring the larger financial landscape,” said Tom Sanzillo, author of the IEEFA report.
The combination of sustained market weakness and strong public opposition “erased the potential benefits they are counting on,” he said.
Editor’s note: When a hurricane like Helene or Milton ravages coastal communities, already-strained first responders face a novel, and growing, threat: the lithium-ion batteries that power electric vehicles, store PV solar, e-bikes, and countless gadgets. When exposed to the salty water of a storm surge or extreme heat, they are at risk of bursting into flames — and taking an entire house with them.
“Anything that’s lithium-ion and exposed to salt water can have an issue,” said Bill Morelli, the fire chief in Seminole, Florida, and the bigger the battery, the greater the threat. That’s what makes EVs especially hazardous. “[The problem] has expanded as they continue to be more and more popular.”
Also petrochemical-based building materials and furnishings have replaced traditional wood, fabric and metal materials in homes worldwide. But plastics are more flammable and release persistent toxic chemicals when burned or exposed to high heat. Over the last 25 years, wildfires have multiplied and intensified due to global warming, and often now jump the wildland-urban interface, burning whole neighborhoods and leaving behind a dangerous toxic home legacy. After the Camp Fire razed Paradise, California, in 2018, water utilities found high levels of volatile organic compounds in drinking water. Similar issues have arisen in places like Boulder County, Colorado, where the Marshall Fire destroyed nearly 1,000 structures in 2021,
“The extreme heatwaves of 2023, which fueled huge wildfires, and severe droughts, also undermined the land’s capacity to soak up atmospheric carbon. This diminished carbon uptake drove atmospheric carbon dioxide levels to new highs, intensifying concerns about accelerating climate change. Widespread wildfires across Canada and droughts in the Amazon in 2023 released about the same amount of carbon to the atmosphere as North America’s total fossil fuel emissions, underscoring the severe impact of climate change on natural ecosystems.”
The following story talks about the Moss Landing fire but there was also a fire that erupted in southeast Missouri at one of world’s largest lithium-ion battery recycling facilities and also in Madison County, Illinois.
Batteries’ toxic gases can cause respiratory, skin and eye problems. Toxic gases from burning lithium-ion batteries can contaminate wildlife such as Monterey Bay’s unique tidal wetland.
This is the fourth fire at the Moss Landing battery storage facility.
Referring to last week’s explosive fire, County Supervisor Glenn Church said, “This is a wake-up call for the industry. If we’re going to move ahead with sustainable energy, we need a safe battery system in place. State of the art safety protocols did not work.”
County officials lifted evacuation orders Friday evening after the U.S. Environmental Protection Agency found “no threat to human health.” Still, Highway 1 remains closed, and health officials in Monterey, San Venito and Santa Cruz counties advise residents to stay indoors, turn off ventilation systems and limit outdoor exposure. Www.ksbw.com provides live updates.
WILDFIRES AND URBAN FIRES
When the Los Angeles fires started January 7, I learned about the differences between wild and urban fires. Wildfires occur in forests or grasslands, fueled by trees or other vegetation. More than 80% of wildfires start by human activities like abandoned cigarettes, campfires and barbeques. Wildfire smoke can penetrate deep into peoples’ lungs and aggravate heart and lung diseases.
Urban fires—conflagrations—are fueled by combustible construction materials including wood framing, plastics, metals, furniture fabric and solar panels (hazardous waste). Because of houses’ flammable contents, urban fires burn extremely hot and generate toxic emissions. High winds and insufficient water supply intensify urban fires. Burning houses emit chemical toxins and generate more heat than burning trees (which, if alive, hold fire-resistant moisture).
INCLUDING LITHIUM-ION BATTERIES IN FIRE RISK ASSESSMENTS
Here’s a question: How do lithium-ion batteries contribute to urban fires?
Like much of the world, Southern California is now dotted with lithium batteries at every telecom cell site (for backup in the event of a power outage); in every electric vehicle, e-bike and hoverboard; in every EV charger; in laptops, tablets and smartphones—and their chargers; in smart utility meters on grid-connected houses and buildings; in off-grid rooftop solar PV systems’ batteries; in battery energy storage systems (BESS) for large-scale solar facilities and wind facilities.
RECOGNIZING THE FIRE RISKS CAUSED BY DRY AND COVERED SOIL
LA has endured eight months without rain. Drought increases fire risk.
Do fire risks also increase when soil can’t absorb and hold water? Soil’s ability to absorb and hold water is one of the Earth’s main cooling mechanisms. How do we reconcile this when we’ve covered land with paved roads, houses, malls, parking lots, data centers and battery storage facilities?
When rebuilding, what policies will ensure that fire’s toxic emissions (to air, soil and groundwater) will not affect future residents and farmers? Given that Governor Newsom has suspended environmental reviews to speed rebuilding in wildfire zones, what will protect residents in rebuilt areas from toxic exposures?
What measures would prevent lithium-ion batteries (at cell sites, in electric vehicles, smart meters, laptops, tablets, smartphones, rooftop solar system batteries, etc.) from catching fire and exploding? Could we prohibit lithium-ion batteries until they’re proven safe and ecologically sound from cradle-to-grave? New Hampshire legislators have introduced an ACT that would allow towns to decline 5G cell sites.
How could rebuilding Los Angeles respect the Earth? To reduce fire risk, support healthy water cycling and increase locally-produced food, could rebuilding policies encourage healthy soil structure?
To provide much-needed affordable housing in LA and elsewhere, would any mansion-owners turn their homes into multiple-family units?
RECONSIDER “SUSTAINABILITY”
Many communities and corporations aim to sustain themselves by installing battery energy storage systems and solar facilities. According to the California Energy Commission, since 2020, battery storage in the state has increased sevenfold—from 1,474 megawatts in 2020 to 10,383 megawatts by mid-2024. One megawatt can power 750 homes.
In New Mexico, AES Corporation has proposed building a 96 MW, 700-acre solar facility with 45 MWs/39 battery containers in Santa Fe County. (Each battery is about 39’ x 10’ x 8’.) Santa Fe’s Green Chamber of Commerce, the Sierra Club’s Rio Grande Chapter, the Global Warming Express and 350 Santa Fe support AES’s project.
Opponents of AES’s facility include the San Marcos Association, the Clean Energy Coalition and Ashley Schannauer (formerly a hearing officer for the state’s Public Regulatory Commission).
I frequently hear people call battery storage, solar PVs, industrial wind and EVs “sustainable.” Looked at from their cradles to their graves, this is simply not true. Mining lithium ravages ecosystems. So does burning coal and trees to make solar panels’ silicon. Refining lithium and making silicon electrically-conductive takes millions of gallons of water, daily. At end-of-life, these technologies are hazardous waste.
Meanwhile, I have many friends with rooftop solar systems and EVs. I would welcome forums about reducing our overall use of energy, water, extractions and international supply chains. I would welcome learning how to live with less.
As survivors of the LA fires, battery fires, Hurricane Helene, Israel’s decimation of Gaza and other catastrophes rebuild, what would communities look like if we considered our technologies’ impacts to ecosystems and public health from their cradles to graves? What would our communities look like if we think, “Ecosystems and public health first?”
Banner Moss Landing battery plant fire, January 16-17, 2025.
MY MISTAKE While writing article I got help from a physicist of fire ignition, an electrical engineer, a forensic fire investigator and an electrician. I also went to the Internet, which informed me that in the event of an outage, cell sites’ power is backed up by lithium-ion batteries. This isn’t totally correct. While 5G small cells primarily use lithium ion batteries, larger cell towers usually backup with lead-acid batteries. I apologize for this error.
