Motion Guide:

THBT fossil fuel companies should dedicate their

resources primarily to becoming environmentally
sustainable (internally and operationally) rather than
investing in external renewable energy companies

Context:
Climate change is a threat that looms large over the entirety of the human race. It is
undoubtedly time to think about and implement ways to combat it to the best of our ability.
One way to do this is to actively substitute away from traditional sources of energy (fossil
fuels), to renewable ones. This change is, quite evidently, not easy to implement for a
variety of reasons, some of which are the perceived unreliability of green energy, its
relatively higher price, and its relatively low efficiency. These hurdles can, of course, be
overcome with the right set of policies.

The transition to renewable energy is an integral part of the larger issue of combating
climate change because the energy sector is easily one of the largest and most polluting
sectors in today’s world. The simple fact that energy is used by almost every individual on
the globe is enough to illustrate the need for the source of this energy to be as eco-friendly
as possible. Now that the basis for this motion has been established, we move on to some
more specific pieces of information.

Renewable energy companies are those that work to produce energy from renewable
sources. These companies can focus on one or more types of renewable energy, a few
examples being solar, wind, water and geothermal energy. This is not an exhaustive list -
there are more renewable sources of power, and almost all of them have been harnessed in
one way or another to produce energy. Whatever the specific renewable source may be, the
one thing that unites all these companies is their complete principle separation from fossil
fuels, which are fully non-renewable. Examples of these companies include Suzlon, ReNew
and Zodiac Energy.

Note here that a renewable energy company is not one that attempts to produce energy
from fossil fuels in the most environmentally friendly way possible - this is an important
distinction to make.

Some examples of fossil fuel companies that have invested in the renewable energy sector
are as follows:

1. BP (British Petroleum) - an undisputed giant in the oil and gas industry, BP has
ramped up its investment in renewable energy exponentially in the past few years,
going so far as to dedicate 30% of its total capital expenditure to renewable energy
in 2022
 2. Shell - around 1.5% of total expenditure was invested into solar and wind energy in
2021. It also acquired Spring Energy group, an Indian supplier of wind and solar
energy, in 2016
3. Chevron - this company, in its bid to increase its stake and business in the renewable
energy sector, completely acquired the Renewable Energy group in 2022, a clean
energy company which is in the biodiesel and renewable fuel market

These moves have triggered a wide variety of reactions and responses. These companies
and others who have made similar investments have said that they are encouraging the
global transition to green energy. These moves have come with various other claims of
becoming more eco-friendly, like shifting toward carbon-neutral operations and net zero
carbon intensity of sold energy products. Fossil fuel companies have portrayed their
investments as a way for them to not only gain business in the clean energy industry but
also as a way for clean energy itself to become better, more efficient and more competitive
such that it can be seen as simply a cleaner equivalent to fossil fuels, as opposed to an
inferior and expensive alternative.

At the same time, however, fossil fuel companies continue to engage in their extraction
processes, which pollute the air, water, and harm local communities. Fossil fuel companies
have often been known to make investments simply for the purpose of “greenwashing.”

Questions to ask yourself in prep:

Proposition Teams:
1. What advancements can fossil fuel companies make to significantly reduce the harm
they cause to the environment? Why are these advancements necessary?
2. Why are fossil fuel companies’ current strategies incompatible with an energy
transition?
3. What are the incentives of Fossil Fuel Companies to invest in renewable energy
companies?
4. What are the ways in which they make investments in renewable energy companies,
and what kind of power does this give them over the companies and the energy
transition overall?
5. What are the challenges currently faced in the widespread adoption of renewable
energy?
6. Why are advancements in greener practices in the fossil fuel industry more urgent
than green energy?

Opposition Teams:
1. What is needed for a successful energy transition in the long term? Why is it
important to have fossil fuel companies engaged in the renewable energy race?
2. What harms that occur to the environment that are inherent and immutable to the
fossil fuel industry?
3. How will fossil fuel companies’ strategies evolve with growing investment in an
energy transition?
 4. What can a fossil fuel company uniquely offer to the renewable energy industry, what
incentives do they have to contribute productively?
5. What are the benefits to the investments made by these companies that are
non-monetary?
6. Why are advancements in renewable energy more urgent than greener practices in
the fossil fuel industry?

Important Reading and Research:

Greenwashing
Greenwashing is the practice of a company actively claiming (through things like ad
campaigns and press releases) to be much more environmentally friendly than it actually is.
Greenwashing is used primarily to convince environmentally conscious consumers to buy a
company’s products, by showcasing the company as the epitome of eco-friendliness. This
has the effect of alleviating the concerns of these consumers and making them more likely
to buy from this company, thereby increasing its profits.

It is becoming increasingly common because the environmental movement is garnering

more support now than ever before, and the current generation of consumers is relatively
more particular about the companies from which they buy goods than those that have come
before them. This applies to the energy space as well. Fossil fuel companies have been
attempting to to show their commitment to greener practices and the energy transition, as a
way to compensate for the criticism they have received for their workings.

The Fossil Fuels Market

Though there is a growing consensus about the need for renewable energy, the fossil fuels
market continues to remain strong. Increase in demand for fossil fuels, such as oil and
natural gas from the industrial sector, rising energy needs of countries, and the growing
urbanisation across the globe are the factors expected to drive the growth of the global
fossil fuel energy market from 2022 to 2031.

On the contrary, the rising investments and technological advancements in the fossil fuel
industry are expected to offer remunerative opportunities for expansion of the fossil fuel
energy market. Different players have adopted different strategies, such as new product
launches, collaborations, expansion, joint ventures, agreements, and others to increase their
market share and maintain their dominance in different regions.

Fossil Fuel Extraction

Since fossil fuels are buried underground, there are two main methods which are used in
their extraction: mining and drilling. Mining is used to extract solid fossil fuels, such as coal,
by digging, scraping, or otherwise exposing buried resources. Drilling methods help extract
liquid or gaseous fossil fuels that can be forced to flow to the surface, such as conventional
oil and natural gas.
The extraction and production of fossil fuels, at every stage, contribute to the degradation
and pollution of the environment. Greenhouse gas emissions are among the primary harms
of extraction processes. Fossil fuel operations account for more than one-third of
human-caused methane emissions. Large amounts of water and chemicals are used in
processes like hydraulic fracturing, which contribute to water waste. Drilling methods cause
extensive land degradation.

The oil and gas industry is facing increasing demands to clarify the implications of energy
transitions for their operations and business models, and to explain the contributions that
they can make to reducing greenhouse gas (GHG) emissions and to achieving the goals of
the Paris Agreement. Fossil fuel companies have recently begun taking some measures in
this regard. The biggest share of green energy patents has been directed towards “cleaner”
forms of fossil fuel energy, as opposed to renewable energy. These include
a. Technologies that reduce greenhouse gas emissions related to energy generation,
transmission or distribution
b. Technologies that reduce the impacts of earth drilling and make it more sustainable.

Fossil fuel companies such as Halliburton Energy Services, and Saudi Arabian Oil Co. have
been among the biggest investors in greener fossil fuel extraction practices.

Reference Material:
● Do Fossil Fuel companies have incentives to curb global warming?
● Big Oil Companies and Greenwashing
● Costs of Fossil Fuels
● How Fossil Fuel Companies can lead the energy transition
● Evolving role of Oil and Natural Gas companies in the Energy Transition

Investments in the renewable energy space

Investment in clean energy technologies is rising. Specifically, with increasing investment of
fossil fuel companies in the green energy space, it begs the question of what this entails for
the future of the sector, and whether this is a good move for the energy transition.

As indicated above, fossil fuel companies have been making monetary contributions to the
green energy space by investing in renewable energy companies or acquiring their
technology. For example, Exxonmobil has pledged to invest heavily in renewable diesel
through its majority owned affiliate company.

Fossil fuel companies have extensive knowledge with respect to development projects. They
have organised solutions for extraction, storage, transportation, and this expertise and
technology could greatly benefit large-scale renewable energy operations.

Multiple fossil fuel blocks have also been attempting to stall the transition into renewable
and clean energy sources - often, acquiring a renewable energy company or a technology
can become a way to slow down their operations. Fossil fuel companies also have made
statements regarding their willingness to invest in only profitable forms of renewable energy.
While giving a boost to some form of renewable energy is welcome, fossil fuel companies
are not inclined to foot the R&D costs of other renewable energy sources that are trying to
break into the market.

Energy Transition: Political and Economic Angles

While there is broad acknowledgement from experts, policymakers, and other stakeholders
alike on the importance of addressing climate change, the manner it plays out in the political
arena is far less straightforward. Political lobbying is a phenomenon wherein individuals or
groups attempt to influence the decisions of the state to suit their interests, there is often a
disproportionate tilt towards groups that possess desirable traits as perceived by those part
of the political machinery, viz. social influence or wealth. Political lobbying done by major
corporations in the energy space often has deep influence on the decisions made by
regulators and legislators.

Fossil fuel companies often hold a lot of political lobbying power, and their willingness to
co-operate with an energy transition can drive changes in legislation which ease regulatory
burdens for renewable energy and help provide a conducive environment for its growth.

For the transition towards greener energy to be successful, individual companies must do
more than simply provide a more environmentally friendly alternative energy but must be
viable based on the economic and political conditions of the market as a whole and
individual consumers, this often involves various strategies to bring the cost down, make the
technology more accessible, or engender structural change that better enables the
proliferation of these strategies.

Reference Material:
● Video: Hidden Price of Climate Change
● Trend of Green Energy Patents
● Economics of Energy Transition
● Jumpstarting the Energy Transition
● Companies: Climate Talk and Lobbying