PRESS RELEASE: EU must step up to limit global warming to 1.5°C’ – says ActionAid

PRESS RELEASE

‘EU must step up to limit global warming to 1.5°C’ – says ActionAid International as NGO identifies ‘5 tests to stop big temperature rises’ ahead of UN climate negotiations.

LONDON/KATOWICE – Ahead of the United Nations climate talks in Poland beginning on Monday (December 3), ActionAid International has warned that the European Union leadership must step up during these negotiations.

Analysis by ActionAid International has identified 5 tests for ‘keeping the Paris promises’ – the commitments agreed in the global deal in Paris in 2015 – after negotiators failed to make progress during an extraordinary meeting of the Conference of Parties (COP) in Bangkok in September.

Speaking from Katowice ahead of the 24th Conference of the Parties (COP24) in Poland, Harjeet Singh, ActionAid’s Global Lead on Climate Change, said:

“At this year’s climate talks, countries will agree the rulebook to implement the Paris Agreement. But with negotiations being hosted in Poland, we have a coal-obsessed country in the driver’s seat. The climate talks are being held in the EU’s back yard, so the bloc must play an influential role to ensure a fair and ambitious outcome to make the Paris Agreement real.

“The EU should stop hiding behind the climate-denying Trump administration, which has chosen to walk away from the global deal. If we are to limit warming to 1.5°C, leadership from the EU is needed now, more than ever.”

‘The 5 Tests: Keeping the Paris promises to end big rises’

Analysis by ActionAid International has identified 5 key tests for ‘keeping the Paris promises’; a reference to the Paris Agreement that was signed by 195 countries in 2015.

Keeping the Paris promises, at a time when the U.S. administration is actively mobilising against progress on the Paris Rulebook that will secure implementation of the deal, means:

  1. Rich countries delivering on the promised $100bn per year

Rich countries must make good on their commitment to provide $100bn per year to finance climate action in poorer countries through the Green Climate Fund (GCF).

  1. Fair and urgent contributions for reducing country-level carbon emissions  

Keeping global temperature rises below 1.5°C can only be achieved through countries delivering their fair share of reductions in national emissions. Rich countries have done most to cause climate change, yet, currently, poor countries are doing more than rich countries to reduce their own national-level emissions.

  1. Ensure that climate actions protect – and do not threaten – human rights

As countries put in place new climate policies to shape industries, food systems and forests, we need to make sure that vulnerable farming communities are not pushed off their lands, or that indigenous peoples are not forced from their forests.

  1. Rejecting the ‘false solutions’ to climate change such as ‘Bioenergy with Carbon Capture and Storage’ 

Many hoped that an approach called “Bioenergy with Carbon Capture and Storage” (BECCS) will be able to suck carbon out of the air, if only they can one day get the technology to work properly.

But BECCs would require so much land to grow tree plantations for bioenergy, that this would lead to widespread hunger and deforestation. And the fact is that this process is not even carbon neutral. It will not halt the rise in global warming.

  1. Protections and support for people who are living with the effects of sea level rises, extreme weather and the unpredictable impacts of climate

New protections for people fleeing climate-related disasters are needed, as the Task Force on Displacement prepares to report on its recommendations to COP.

ActionAid International has a delegation of negotiation observers located in Katowice for the duration of the COP meetings.

Notes to editors

ActionAid is an international federation of 45 countries, working with climate-affected communities around the world, with over a decade of experience in monitoring global climate negotiations.

For interviews with ActionAid observers at the negotiations and for background briefings, please contact:

Adam McNicholas, via adam.mcnicholas@actionaid.org and (+44) 07968 356 811

Jenna Pudelek, via jenna.pudelek@actionaid.org (+44) 07795 642 990

For any other information contact Lisa Wilson via lisa.wilson@actionaid.org or call (+353) 1 8787911

Protesters holding End Fossil Fuels banner at a climate demonstration, advocating for renewable energy solutions.

Protestors at COP 28 in Dubai. Photo: Konrad Skotnicki.

Climate protest with diverse crowd holding signs about environmental action in a city square.

Belfast Climate Change March, 2019. Photo: Trócaire.

The Profit Driving the Crisis

Despite their overwhelming contribution to global emissions, fossil fuel companies continue to attract significant financial backing—driven by their enduring profitability. This is starkly illustrated by the case of ExxonMobil, the top fossil fuel investment held by asset managers based in Ireland. In 2023, ExxonMobil reported €33.63 billion ($36 billion) in profit. That is almost twice the GDP of Botswana (€18.1 billion) and nearly three times Namibia’s GDP (€11.5 billion).

Ireland plays a hugely disproportionate role in facilitating investments into fossil fuel companies like ExxonMobil. In 2023, the investments made into fossil fuel companies by investment managers based in Ireland generated an estimated 72.5 million tons of CO2e. This is more than the CO2e emissions for the entire country of Ireland—and more than ten times that generated by Sierra Leone.

The Global Human Impact

The climate crisis is here, now, and it is causing disproportionate harm in the Global South. In Bangladesh, rising sea levels and increasingly severe cyclones are displacing coastal communities, with projections indicating that 17% of the entire country could be underwater by 2050. The legally binding Paris Agreement on climate change explicitly acknowledges the importance of tackling private finance. Its three overarching goals are: keeping below 1.5C of warming; increasing adaptation and making finance flows consistent with low emissions and resilience.

This gives a clear mandate for action:  both tax reform and corporate regulation are needed to tackle financial flows, and both nationally in Ireland and at EU level, ‘polluter pays’ taxes are lacking and regulation of the financial sector remains weak and fragmented. While EU regulation exists, it is designed more to nudge investors toward more sustainable investment practices by increasing transparency and reporting levels than to enforce strict standards. And it is moving in the wrong direction: the recently passed EU Corporate Sustainability Due Diligence Directive excluded investments; and now the EU Commission’s Omnibus legislative proposal threatens to undo the limited gains made on climate plans, as well as blocking future attempts for stronger action at national level.

The Risk of Inaction

Fossil fuel investment is too profitable to remain weakly regulated. If Ireland continues with its current strategy of encouraging FDI at all costs, and relying on weak EU regulation, we are headed for catastrophe. The Inter-governmental Panel on Climate Change has repeatedly warned that every fraction of a degree beyond 1.5°C brings irreversible consequences: collapsed ice sheets, vanishing coral reefs, and extreme weather events that will make vast regions of the planet uninhabitable. And yet, companies are developing oil and gas fields that could push global warming beyond 2°C.

Our research found that 91% of the investments made into fossil fuel companies by investment managers based in Ireland were to companies that have plans for fossil fuel expansion like these. Ireland cannot afford inaction on this issue.

About This Research

The figures in this report regarding investment from Ireland are based on new research commissioned by ActionAid Ireland and Trócaire. In the paper, we uncover the scale of fossil fuel investment through Ireland, who the investors are, and in which fossil fuel companies they are investing.  We analyse the current regulatory framework and explain why it is inadequate—and moving in the wrong direction. And we make specific recommendations for change, which are summarised below.

Summary of Recommendations

Regulate the private financial sector
Ireland must end its outsized role as an enabler of destructive fossil fuel investment. Ireland should introduce a strong gender-responsive national human rights and environmental due diligence framework which includes the regulation of investors with respect to human rights and the environment and climate. The transposition of the EU Corporate Sustainability Due Diligence Directive could achieve this if downstream activities are included and the Omnibus proposal is rejected. Ireland should prohibit investments in fossil fuel expansion and require investors to implement climate transition plans consistent with a 1.5°C climate limit.

Endorse the Fossil Fuel Non-Proliferation Treaty
Ireland should endorse developing a Fossil Fuel Non-Proliferation Treaty to curb fossil fuel expansion and commit to a fair and funded phase out of fossil fuels.

Support tax justice
Ireland should support bold and fair new global tax rules through the UN Framework Convention on Tax, should adopt all OECD BEPS measures, and should conduct an updated and comprehensive spillover analysis of its tax policy. Ireland should take coordinated action globally, at the EU level and domestically to introduce a range of new taxes to mobilise finance needed for climate justice, based on ‘polluter pays’ and social equity principles such as wealth taxes for the highest earners, climate damages tax on investors, fossil fuel production taxes and levies on aviation and shipping.

Finance a just transition
Ireland must also meet its fair share climate finance obligations under Article 9.1 of the Paris Agreement, and pay our ecological debt to the Global South. Ireland should support conditionality-free debt cancellation for countries on the front lines of the climate crisis, commit to a new UN Framework Convention on Sovereign Debt, moving debt negotiations from the IMF to the UN, and to a debt workout mechanism that is fully representative and fair.

Further reading