Just 36 Companies Fuel Half of Global Climate Crisis  

State-Owned Enterprises Responsible for Largest Share of the World's 2023 Greenhouse Gas Emissions

In 2023, more than half of global greenhouse gas emissions came from just 36 fossil fuel and cement producers, according to a new Carbon Majors database analysis. What the research shows is that most of the largest emitting companies were state-owned, and 16 of the top 20 emitters were state-owned. Their main emitters were large fossil fuel and cement producers, the majority of which are located in state-dominated countries.

The five largest state firms—Saudi Aramco, Coal India, CHN Energy, National Iranian Oil Company, and Jinneng Group—collectively responsible for almost an tenth of all the world's 2023 emissions. This stood in contrast to shareholder-owned firms like ExxonMobil, Chevron, Shell, TotalEnergies, and BP, whose total output accounted for just 5 percent of emissions, and places in stark relief the increasing prevalence of state-owned corporations in world energy.

The Carbon Majors database monitors the emissions of fossil fuel and cement manufacturers, encompassing 180 of the largest producers between 1854 and 2023. The data has been used in many climate accountability cases globally and has left its footprint on climate-related policy. The report comes at a time when nations are finding it hard to achieve their climate goals, with fossil fuel manufacturers producing more even when the world is calling for reduced carbon emissions.

The 2023 report also shows large emissions growth in the majority of the planet, as fossil fuel use and coal mining still supply the majority of carbon emissions globally. China was still the biggest emitter, as its corporations emitted more carbon than the rest of the world's nations combined in 2023. Eight of the world's biggest emitting corporations were Chinese, most of them in the coal industry, contributing to 17 percent of global emissions. This ongoing use of coal, the largest single contributor to pollution, has raised environmental concerns regarding the country's contribution.

The growth in emissions was also seen in other parts of the globe. Australia, Asia, and North America had the most significant emission growth at 11 percent, 6 percent, and 3 percent, respectively. At the same time, the emissions in Europe went down by 4 percent and the Middle Eastern emissions had insignificant growth, below 1 percent.

As emissions from coal and cement manufacturers ballooned, the report said that emissions from natural gas decreased by almost 4 percent. Oil emissions were stable, changing little from the previous year.

Increased concentration of emissions at the hands of a small number of monster companies and minimal movement towards cutting its reliance on fossil fuels has alarmed climate activists. The Carbon Majors database has already been used in climate cases, and governments have proceeded to the extent of going to court to get oil companies to pay for climate damage. Vermont, for instance, was the first US state to hold oil companies liable for climate damage and did so using Carbon Majors database data to support its "climate superfund" bill.

In spite of such hindrances, the report outlines the growing role of state-owned corporations during the climate crisis. Such companies, who are entitled to the majority of the state governments' favor, are still highly immune to regulatory action and court cases as compared to their private-market counterparts. On this basis, holding such state-owned corporations responsible for greenhouse gas emissions is a core world climate policy challenge.

As nations continue negotiating their post-Paris Agreement climate goals, state-owned enterprise emissions are a critical sticking point. While private enterprise firms like ExxonMobil and BP are already being pressured by investors and governments to cut back on emissions, state-owned enterprises are still going ahead with growth in fossil fuel operations without being similarly pressured. This discrepancy makes it more challenging to register meaningful reductions in worldwide carbon emissions and stop the effects of climate change.

The Carbon Majors report summarizes the necessity for a more cohesive approach to addressing climate action globally, particularly in the management of state-owned enterprises' carbon footprint. It will be of critical importance to private and state-owned enterprises, as the world continues to fight climate change, to reduce their carbon footprint and move towards cleaner energy.

Source: Financial Times, Carbon Majors Database.