The Great Climate Heist, Industries Exploit Global South Public Fund

By Steve Ephraem

A staggering truth has been uncovered: the very industries driving the climate crisis are siphoning off over $600 billion in public subsidies every year, further entrenching the problem. ActionAid’s explosive report, “How the Finance Flows: Corporate capture of public finance fuelling the climate crisis in the Global South,” exposes the alarming reality.

In the Global South, where communities are already bearing the brunt of climate change, fossil fuel and industrial agriculture sectors are receiving substantial handouts. Between 2016 and 2023, the fossil fuel industry raked in an average of $438.6 billion annually, while industrial agriculture pocketed $238 billion.

Meanwhile, renewable energy initiatives and climate solutions are struggling to stay afloat, receiving a mere fraction of the funding. The disparity is striking: for every dollar invested in renewable energy, the fossil fuel sector receives 40 times more.

“This report exposes wealthy corporations’ parasitic behavior,” declares Arthur Larok, Secretary General of ActionAid International. “They’re draining the life out of the Global South, fueling the climate crisis, and undermining global climate commitments.”

Teresa Anderson, Global Lead on Climate Justice at ActionAid, adds, “Climate-destructive industries are bleeding the Global South of public funds, exacerbating the crisis. It’s time for the Global South to stand up to these industries and demand change.”

The report also shatters the myth that fossil fuel and industrial agriculture expansion is necessary for food security and energy access. Communities like those in Nigeria’s Delta State, where Shell’s operations have devastated local ecosystems, know the truth.

“We’ve lost our way of life,” says Jonah Gbembre, an activist from Iriwekan. “Our taxes shouldn’t support oil companies that destroy our communities. We need alternative energy sources like solar and wind.”