Tuesday, 1 Jul 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • VIDEO
  • White
  • ScienceAlert
  • Watch
  • Trumps
  • man
  • Health
  • Day
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Environment > A UK energy company received $762M in ‘green loans’ despite years of pollution violations in the South
Environment

A UK energy company received $762M in ‘green loans’ despite years of pollution violations in the South

Last updated: January 26, 2025 1:07 am
Share
A UK energy company received 2M in ‘green loans’ despite years of pollution violations in the South
SHARE

The investigation conducted by The Examination, The Toronto Star, and Mississippi Today has revealed that Drax, a British energy company, has received over $762 million in “green” loans while facing millions in fines and settlements for violating pollution laws in Mississippi and Louisiana. This raises questions about the effectiveness of these sustainability-linked loans (SLLs) in promoting climate-friendly practices.

Despite receiving these loans, Drax has had to pay out over $5 million in penalties and settlements to the states of Mississippi and Louisiana over the past five years. The company ships wood pellets made in North America to other countries as a source of power to meet their carbon reduction goals. However, local regulators have cracked down on Drax for its air pollution violations in both states.

Since 2018, banks have issued $1.5 trillion in SLLs to large corporations to incentivize climate-friendly practices. Wood biomass companies like Drax received over $76 billion in SLLs between 2018 and 2023. Drax received two such loans, totaling $761 million, from banks like Bank of America, Barclays, and JP Morgan.

While Drax claims to have reduced its carbon footprint since receiving these loans, scientists argue that using wood pellets for electricity can actually increase carbon emissions compared to coal or gas. Burning wood pellets releases carbon into the air, and cutting down trees to make pellets also releases carbon, as trees store carbon and take years to regrow.

Despite these concerns, global industrial leaders like the United Kingdom have embraced biomass, including wood pellets, as an energy source. The U.K.’s Clean Power 2030 Action Plan sees biomass as a key part of its transition to clean energy. However, critics argue that using wood pellets for electricity may not be as sustainable as it seems.

See also  Five years in, a review of SARS-CoV-2 and the Covid-19 pandemic

In response to questions, Drax defended the use of pellets for electricity, stating that when sourced sustainably, biomass is an important contributor to decarbonizing electricity generation. However, the company has faced scrutiny over how it sources its pellets, with the U.K. government issuing a fine last year for failing to fully disclose the sources of wood pellets made in Canada.

In Mississippi, Drax was fined $225,000 for releasing hazardous air pollutants above permitted limits from its plant in Gloster. This raises concerns about the environmental impact of Drax’s operations and the effectiveness of green loans in promoting sustainability. Drax, a British energy company, is facing scrutiny for its emissions practices as it applies to become a “major” source of Hazardous Air Pollutants (HAPs). This designation would allow Drax to emit greater levels of pollutants with added pollution reduction controls. Allison Brouk, a senior attorney for Earthjustice, criticized Drax for manipulating the regulatory system to its advantage.

Drax has a history of environmental violations, including a $2.5 million fine in Mississippi in 2020 for exceeding legal limits on volatile organic compounds (VOCs). In 2022, the company reached a settlement with the Louisiana Department of Environmental Quality for exceeding VOC limits at its plants in Louisiana, agreeing to pay a combined $3.2 million.

Despite these fines, Drax announced plans to invest $12.5 billion in developing its biomass operation in the U.S. with carbon capture and storage technology. However, critics like the Natural Resources Defense Council argue that this technology may lead to even greater emissions.

The company’s receipt of a Sustainability Linked Loan (SLL) has also raised concerns, with some questioning the accuracy of Drax’s emissions metrics. The intended goal of SLLs is to encourage sustainable practices in large corporations, but some recipients have been accused of framing their emissions data in misleading ways.

See also  Microsoft Worker Sacked After 25 Years Of Service On Birthday, Wife Shares Emotional Post

As investigations into Drax’s environmental practices continue, it is clear that the company’s actions have sparked controversy and raised questions about its commitment to reducing emissions and protecting the environment.

TAGGED:762McompanyEnergyGreenLoansPollutionReceivedSouthViolationsYears
Share This Article
Twitter Email Copy Link Print
Previous Article Gorgeous images capture coral breeding breakthrough Gorgeous images capture coral breeding breakthrough
Next Article DEI dominates conversation among CEOs DEI dominates conversation among CEOs
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Apple iPhone All-Glass Curved Overhaul Tipped For 20th Birthday

Apple's Bold Plans for the 20th Anniversary iPhone Recent reports suggest that Apple is gearing…

May 15, 2025

Why Danny Boyle shot ‘28 Years Later’ on iPhones

Director Danny Boyle Uses iPhones to Film '28 Years Later' Sequel Director Danny Boyle, known…

June 22, 2025

Hailey Bieber Lands Vogue Cover After Justin’s Surprising Claim

Justin Bieber publicly apologized to his wife, Hailey Bieber, for a hurtful comment he made…

May 20, 2025

How To Achieve The Look For Beginners

Ultimately, the fox eye makeup trend is a testament to the ever-evolving nature of beauty…

December 12, 2024

CDC chronic disease unit is slated to fold despite MAHA’s focus

Chronic disease continues to be a prominent issue in public health, with the Department of…

June 4, 2025

You Might Also Like

Scientists IN Society: From Isolation to Engagement
Environment

Scientists IN Society: From Isolation to Engagement

July 1, 2025
Schneider Electric on modern energy threats, digitalisation and grid resilience
Economy

Schneider Electric on modern energy threats, digitalisation and grid resilience

July 1, 2025
Plan Ahead for Extreme Air Conditions
Environment

Plan Ahead for Extreme Air Conditions

July 1, 2025
Earth Action: Clean a Beach
Environment

Earth Action: Clean a Beach

July 1, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?