As the Trump administration works to听, a larger struggle is playing out across multiple industries.

Until recently, oil companies and their defenders generally reacted to calls for regulating carbon emissions by听. However, I believe this approach is becoming less effective as climate change effects worsen and听听intensify worldwide.

As a scholar who focuses on the听, I see growing anxiety among corporate elites. Some fossil fuel defenders are embracing a new strategy that I call听. With a transition to a low-carbon economy looming, they are accelerating investments in fossil fuel extraction while听听to delay climate action.

Traffic along Beretania Street near Punchbowl Street2.
Traffic jams up along Beretania Street near Punchbowl Street. Cory Lum/Civil Beat/2019

Climate defiance is leading to some surprising clashes between the Trump Administration, bent on extreme deregulation and extraction, and many other companies who recognize that the fossil fuel economy is unsustainable, even if they have not embarked upon a green transition. Climate change is sparking this self-reflection, which is writing a new chapter in global warming politics.

Car Wars

One high-profile example is the Trump administration鈥檚 effort to weaken corporate average fuel economy, or CAFE, standards negotiated by the Obama administration, which were projected to reduce U.S. oil consumption by an estimated . Early in the Trump presidency, both听听补苍诲听听听for the Trump administration to weaken the emissions standards.

But when it became clear that the Trump administration planned to go further than simply weakening the standards, and to freeze them altogether in 2020,听. California and more than a dozen other states insisted on the right to听, and four major automakers 鈥 Ford, Honda, Volkswagen and BMW 鈥 joined听.

Those companies, who represent about 30% of the U.S. market, have now agreed to adhere to stricter emissions standards similar to the Obama plan, citing the need for听. In retaliation, the Justice Department recently opened an听听into the pact.

Meanwhile, Toyota, General Motors and Fiat Chrysler are听. Their decision surprised many industry watchers, particularly given听听in designing low-emissions vehicles.

Methane

Another divisive issue is the Trump administration鈥檚 plan to ease regulations curbing methane emissions from natural gas production. Energy companies tout natural gas as a听听because it generates fewer carbon dioxide emissions than coal or oil.

However, methane 鈥 the main component of natural gas 鈥 is a greenhouse gas that contributes significantly to global warming. According to some studies, methane leaks from natural gas extraction and production, known as fugitive emissions, may make natural gas extracted from shale rock .

Several major oil companies, including BP and Royal Dutch Shell,听. Why? They have invested heavily in natural gas as a way to extend their fossil fuel business, and听听to the notion that natural gas should play a prominent role in a green transition, especially as renewable energy听.

In contrast, the American Petroleum Institute and smaller oil and gas companies听, claiming that methane control is too expensive.

Shades of Green

Beyond these specific controversies, many companies in the energy sector and beyond have voiced support for moving to a lower-carbon economy.

For example, in August 2019 the Business Roundtable, a corporate advocacy group comprised of almost 200 CEOs from major American corporations, declared that corporate responsibility meant听. Instead they adopted a broader definition that includes serving customers, employees, suppliers, communities and shareholders, and pledged to 鈥減rotect the environment by embracing sustainable practices across our businesses.鈥

Such declarations are easy to dismiss as听. Corporate responses to climate change have largely touted market-based reforms, like听, which would not jeopardize ongoing fossil fuel extraction and profits.

Indeed, global fossil fuel and overall energy consumption听. And while banks may highlight their听, they also have provided听听in fossil fuel financing since the 2016 Paris Agreement entered into force.

Meanwhile,听听warn that avoiding warming on a catastrophic scale will require 鈥渞apid and far-reaching transitions in energy, land, urban and infrastructure (including transport and buildings), and industrial systems.鈥 Many experts assert that change on this scale will ultimately require countries to听.

Others assert that investments in renewable energy alone听. Historically, they argue, new renewable energy additions have mostly听, rather than displacing fossil fuels. From this perspective, phasing out fossil fuels will require political action.

Such a shift poses an existential threat to major oil companies. Big Oil touts its green projects, but renewable energy accounts for only听. In the view of energy scholars Daniel Sperling and Lewis Fulton, Big Oil has 鈥溾 for a green transition.

An Existential Fight

In my view, struggles between the Trump administration and major corporations over environmental deregulation signal an awareness that the fossil fuel economy鈥檚 days are numbered. Although climate deniers occupy prominent positions in the White House, Congress and the Environmental Protection Agency today, recent polls show that听听are worried about climate change and believe it will harm them.

As I argue in my听, our fossil fuel system was set up to put the world to work for the benefit of European and American powers. Its profits come from undervaluing the labor and resources that feed it, which I believe has led not only to climate change but to听.

A green transition is therefore not only a technical project. As听听in Green New Deals suggests, climate change听.

I see corporations beginning to sense this challenge. Some companies, especially those built upon fossil fuels, will continue to resist moving toward a lower-carbon future. Others will promote market reforms rather than broader systemic changes. I believe, however, that the most forward-looking must begin to imagine how they will fit into a just and decarbonized economy.

This story originally appeared in .

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