US’s Shocking $30 Billion Gamble on Dubious Climate Tech: The Truth Behind the Spending Spree!

US Leads in Dubious Climate Tech Spending

Rich nations, spearheaded by the US, are pouring public funds into untested climate technologies. This approach may delay the shift from fossil fuels, warns a new report. Over the past 40 years, nearly $30 billion has been allocated for carbon capture and fossil hydrogen.

The European Union, the US, Norway, Canada, and the Netherlands account for 95% of these subsidies. The US alone has spent $12 billion on such projects, with companies like Exxon aiming for even more in the future.

The preferred solutions by these industries might offer limited help in reducing global warming. The IPCC suggests these technologies are being pushed by wealthy countries at the UN climate summits.

Studies reveal that carbon capture and storage (CCS) projects often fail, overspend, or underperform. They still rely on fossil fuels, potentially increasing greenhouse gases and air pollution.

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Misguided Investments in Carbon Capture

Despite massive investments, the US and others have little success to show for their efforts in carbon capture. Robert Howarth of Cornell University notes the industry’s lack of investment in this technology, relying heavily on government funds instead.

Critics argue that public money should target proven, low-risk solutions like:

• Plugging leaky oil wells
• Enhancing energy efficiency in buildings
• Electrifying transport and expanding renewables

Harjeet Singh from the Fossil Fuel Non-Proliferation Treaty Initiative criticizes the subsidies as a “colossal waste of money” that props up the very industries fueling climate change.

The US and Canada have spent over $4 billion on CO2 capture for Enhanced Oil Recovery (EOR), as per the OCI report. Proponents insist more investment is needed to reach global climate goals.

The Reality of CCS and Hydrogen Technologies

Astrid Bergmål from Norway’s ministry of petroleum and energy defends these technologies as part of the essential tools to achieve net zero. Norway has approved $6 billion in subsidies for CCS, despite its fossil fuel dependency.

The new OCI analysis tracks public funding from 1984 to 2024 and recent government policies in the US, Canada, Australia, and Europe that support these technologies.

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Lorne Stockman from OCI highlights the massive taxpayer funds going into technologies that fail to meet their promises. The US alone could see subsidies topping $100 billion thanks to the Biden administration’s policies.

Experts warn CCS technology is challenging and unlikely to deliver. Charles Harvey from MIT notes the history of CCS is filled with “unmet expectations”, diverting crucial funds from more effective emission-cutting measures.

Global Investments and Their Impact

While hydrogen could be green if powered by renewables, governments globally have spent $4.2 billion on projects aiming to produce blue hydrogen using CCS. Actual CO2 capture rates often fall short of claims.

Canada is the second-largest funder of blue hydrogen after the US, with $1.2 billion spent mainly at an oil refinery in Alberta. The net CO2 capture rate from this plant is below 70%.

Globally, fossil fuel subsidies range between $500 billion and $1 trillion annually. In 2022, the figure was closer to $7 trillion when accounting for climate, environmental, and health costs.

Despite these massive figures, only $700 million was pledged to the new loss and damage fund at Cop28, far short of the required $400 billion annually. The financial gap for climate adaptation continues to grow.

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