Message From the Editor

As we gear up for COP27, taking place in Sharm El Sheikh, Egypt, and starting in a matter of days, the United Nations is sounding the alarm bells. Secretary General António Guterres warned in a speech on Thursday that “under current policies, the world is headed for 2.8 degrees of global heating by the end of the century” — well beyond the bounds of the Paris Agreement.

In his speech, Guterres laid out steps we need to take to ward off climate catastrophe. One was “avoid a lock-in of new fossil fuel infrastructure.” And a decision this week from a public utilities commission in the United States might help do just that.

Nick Cunningham has been reporting on NW Natural, a gas utility that serves customers in the U.S. states of Oregon and Washington, that is attempting to raise its rates. Earlier this year, the company asked the Oregon Public Utilities Commission to allow it to recover a variety of costs from customers, including rising gas prices, executive bonuses, and pro-gas activity books it sent to schools. 

This week the OPUC ruled on some of those requests, and also forged new ground by ordering a phasedown of subsidies known as “line extension allowances” that promote the growth of the gas system.

Greer Ryan, clean buildings policy manager at Climate Solutions, told Nick that phasing out line extension allowances “might be the biggest deal when it comes to preventing gas system growth.”

However, details on how and when the line extension allowance must be phased down have not yet been solidified, and NW Natural has lobbied against climate-friendly policies in Oregon in the past. We’ll continue to follow the story as it unfolds, and you can catch up on our past coverage in our new series NW Natural: The Battle Over Gas in the Pacific Northwest.

Have a story tip or feedback? Get in touch: [email protected]. Want the scoop on new UK Prime Minister Rishi Sunak’s climate stance? Sign up for our UK newsletter.

Thanks,
Brendan DeMelle
Executive Director

P.S. We’ll be sending a small but mighty team to COP27 to report on the gas lobby and climate denial, among other things. Can you donate $10 or $20 right now to support our team?

Image credit: Nick Cunningham

Oregon Regulator Rejects Some of Utility’s Attempts to Bill Customers for Lobbying and Advertising Costs

— By Nick Cunningham (5 min. read) —

The Oregon Public Utility Commission (OPUC) partially rejected attempts by NW Natural to pass on the costs of lobbying and promotional advertising to ratepayers in what climate advocates are calling a major victory against the gas utility. The regulatory body also forged new ground by ordering a phasedown of subsidies that promote the growth of the gas system, citing the growing likelihood that customers may shift away from gas over the long-term.

Professor Resigns from Research Center Over Partnership with Oil and Gas Major Eni

— By Stella Levantesi (4 min. read) —

An Italian social scientist and professor, Marco Grasso, has resigned from his post as director of a research unit at Università degli Studi Milano-Bicocca (UNIMIB) in Milan, Italy, over the academic institution’s partnership with oil and gas major Eni, DeSmog can exclusively report.

In February this year, UNIMIB and Eni signed a five-year “Joint Research Agreement,” (JRA) in which the university and the fossil fuel company pledged to collaborate on “research projects of common interest” related to the energy transition, according to an Eni press release.

New Study Warns That Argentina Is Stuck in an ‘Oil and Gas Trap’

— By Nick Cunningham (8 min. read) —

Argentina’s risky gamble on fracking has led to massive environmental and public health costs, and despite years of government support, the industry remains on shaky financial ground. As the energy transition picks up pace, the South American nation could be left with tens of billions of dollars in stranded assets, according to a new report by Dutch consultancy Profundo. The Argentine government, with the cooperation of an array of global institutions, has the country locked in an “oil and gas trap,” mortgaging the country’s future on fracking even as the financial risks continue to grow, the report warns.

Sunak Hands Cabinet Job to Climate Sceptic David Davies

— By Rich Collett-White (4 min. read) —

Rishi Sunak has put a long-time climate contrarian in charge of the government’s Wales policy, upgrading him from the junior ministerial role he was given three years ago by Boris Johnson.

Monmouth MP David Davies, whose responsibilities will include energy, climate change, and broader economic issues related to the devolved nation, has a long history of dismissing climate science and criticising environmental action.

Gas Utility Proposes Costly Hydrogen Project, Raising Environmental Justice Concerns

— By Nick Cunningham (6 min. read) —

A coalition of environmental and social justice organizations have filed a petition with state regulators to halt a hydrogen project by Oregon’s largest gas utility, alleging that the project poses health, safety, and environmental dangers to residents already living with polluting industries. The hydrogen project is also viewed by critics as a costly exercise in greenwashing that offers little climate benefit and is calculated to slow down momentum towards building electrification.

NW Natural, a gas utility that serves roughly 2.5 million customers in Oregon and Washington, has proposed building a hydrogen pilot project in the city of Eugene. 

From the Climate Disinformation Database: The Oil and Gas Climate Initiative

The Oil and Gas Climate Initiative (OGCI) is a coalition of major oil and gas companies created to promote a climate-friendly image for some of the world’s largest polluters. Established in 2014, the OGCI claims to be “committed to the direction set out by the Paris Agreement on climate change.” The OGCI’s members have included Shell, BP, Saudi Aramco, Eni, Total, CNPC, and Pemex among others. The OGCI regularly makes statements of intent in the weeks leading up to the annual UN international climate talks. These announcements have been criticized as “greenwashing” exercises, with many of the same companies often involved in obstructing efforts to take action on climate change through lobbying activities. 

Read the full profile and browse other individuals and organizations in our Climate Disinformation Database and Koch Network Database.