Pope Francis and Big Oil Back raise criticism of policies to fight climate change



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Michael Bastasch | Energy Editor

The Vatican has joined oil companies, investors and environmentalists by signing a statement supporting the "carbon price" and "climate disclosures" to shareholders.

Pope Francis, the oil giants and others have approved carbon pricing – usually in the form of taxes or cap-and-trade systems – Friday at the end of a closed meeting at the Academy of Pontifical Sciences. (RELATED: US confidence in OPEC oil reaches 30-year low)

Addressing Friday's meeting, the pope called for a "radical energy transition" to reduce carbon dioxide emissions and combat global warming. He met with oil companies in 2018 about climate change.

"Undeniably, the Earth is a unique system and humanity is a whole," reads the joint declaration signed by leaders of the oil and gas sector, activist investors and environmentalists, obtained by Axios.

The letter calls for "large-scale action" and technological innovation to keep global warming below 2 degrees Celsius, which is the goal of the Paris climate agreement. The signatories agreed that any carbon price should be high enough to change the behavior of businesses and consumers, but also help "those who are least able to pay".

Pope Francis addresses energy representatives at the end of a two-day meeting at the Academy of Sciences, at the Vatican

Pope Francis addresses the energy representatives at the end of a two-day meeting at the Academy of Sciences, Vatican, on June 14, 2019. Vatican Media / Document distributed via REUTERS.

Pope Francis addresses energy representatives at the end of a two-day meeting at the Academy of Sciences, at the Vatican

Pope Francis addresses the energy representatives at the end of a two-day meeting at the Academy of Sciences, Vatican, on June 14, 2019. Vatican Media / Document distributed via REUTERS.

The carbon tax proposals put forward in the United States sometimes have a "dividend" paid to families to offset higher energy costs. Conservatives opposed to carbon taxes, however, highlight the problems associated with creating a new social assistance program.

"A carbon tax and a" dividend "system would impose a significant tax increase on the American people," according to Americans for Tax Reform (ATR). "It would also create a big new rights-related spending program and give the government more power over your life."

ATR was one of 75 conservative groups to sign a letter to Congress opposing the "all carbon tax" bill introduced by lawmakers.

Despite this, large corporations, Republicans, Democrats and ecologists of the old guard have joined forces to impose a national carbon tax. Large companies consider that a carbon tax is preferable to federal regulations.

"It requires a new level of cooperative leadership, building trust and commitment. We are meeting this challenge, "wrote signatories, including ExxonMobil, BP, Sinopec, ConocoPhillips, Equinor and Chevron.

The group signed a second letter in which it undertook to disclose the potential risks to its climate change and government regulatory activities that could limit fossil fuels. Activist investors have succeeded in having this type of policy adopted through shareholder resolution.

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