To: Nicola Sturgeon, First Minister of Scotland Boris Johnson, Prime Minister UK cc: Rishi Sunak, Chancellor of the Exchequer 28 May 2020 Open letter No bailouts or government loans for climate and plastic polluter Petroineos Dear First Minister Nicola Sturgeon, dear Prime Minister Boris Johnson, We, the undersigned organizations and individuals urge you not to bailout or grant any government loans to Petroineos, the joint venture of PetroChina and Ineos. According to recent press reports[i], the company - part-owned by billionaire and tax exile Jim Ratcliffe[ii] – seeks £500m in state support for its Grangemouth facilities. The plastics industry has reaped under-the-radar benefits from the environmentally destructive fracking boom and an oversupply of cheap ethane in the past few years. This surge has been a boon for the plastics industry, which relies on petrochemical manufacturing to turn ethane, a hydrocarbon present in natural gas, into plastics. Beginning in 2012, chemical companies started aggressively investing in petrochemical plants, pipelines and export facilities focused on tapping the ethane glut, creating further negative implications for human and environmental rights – right at a moment when we desperately try to solve both - the big global plastic and climate crisis.[iii] According to calculations published by the Center for International Environmental Law (CIEL), full plastic lifecycle emissions (including the extraction of fossil fuels, production, transport, consumption and disposal) alone will generate 56 gigatons of CO2 by 2050. This corresponds to 10 – 13 per cent of the global carbon budget we have left to stay within a 1.5 ° global warming scenario. Ineos is the main driving force behind the establishment of an already existing supply chain of fracked US gas that Ineos uses to produce plastics in Europe[iv]. The Ineos Dragon Ships crossing the Atlantic emblazoned with the slogan “Shale Gas for Europe” are leaving more than a toxic legacy in Europe — they are fueling the proliferation of fracking in Pennsylvania, a state that was already struggling with the impacts of oil and gas industry pollution. The company is also known for publicly opposing green policies and taxes[v] – while at the same time it sees no contradiction in making use of a state loan guarantee[vi] to maintain its otherwise unprofitable Page 1 of 24 fracking for plastics business model. According to their annual report 2019, Ineos is “significantly indebted and as of December 31, 2019, had total consolidated loans and borrowings of €6,887.3 million as compared to total equity of €1,528.0 million”.[vii] The company has operated chemical plants for nearly two decades, but in that short time, many of its facilities have been bedevilled by environmental problems. Its dozens of manufacturing facilities across Europe have been responsible for releases of toxic chemicals, leaks, fires and explosions that have endangered workers, communities and the environment.[viii] Ineos also has been rated several times the worst air polluter in Scotland.[ix] Despite being Europe’s largest virgin plastics producer, the company refuses so far to take responsibility for contributing to billions of plastic pellets littering beaches and nature protection zones in the UK[x] and elsewhere.[xi] Humanity is currently being tested in manifold ways - with manmade global warming as the biggest and most comprehensive existential threat ever faced. The UK will host in Glasgow, a very crucial climate change conference – possibly paving the way for decades to come. Bailouts or government loans for companies like PetroIneos, who contribute systemically through their business model to climate change and an increasing plastic pollution of our environment and oceans, cannot be tolerated in these troubled times. Any support packages for companies must set conditions to protect workers’ rights and high environmental standards, prevent public money from being diverted into the pockets of shareholders, and re-orientate the industry towards meeting the Paris climate agreement. What we need right now, is swift and radical action for the much-needed shift to 100% sustainable renewable energy, an increase in energy efficiency and a sustainable circular economy that focuses on drastically reducing single-use plastics. This must be planned for and managed in deep partnership with trade unions, workers and communities to ensure a Just Transition into clean industry that guarantees decent work for those impacted and secure local economies. Every investment in or support for Ineos would directly fuel the climate and plastics crisis, locking in future instability at a time when investment should be prioritised towards creating secure and sustainable industry. We call on you to side with the climate and the environment, prioritising long term stability for workers through green jobs, and we urge you not to bailout or to grant government loans to Petroineos Sincerely, Page 2 of 24 Signatory Logo 1. Andy Gheorghiu, Policy Advisor, Food & Water Action Europe 2. Joe Corré, Founder, Talk Fracking 3. Dame Vivienne Westwood Howarthlab.org 4. Prof. Robert Howarth, Cornell University, Ithaca, NY, USA 5. Richard Dixon, Director, Friends of the Earth Scotland 6. Louise Edge, Head of Oceans Plastic Campaign, Greenpeace UK Page 3 of 24 7. Steve Mason, campaign lead of Frack Free United 8. Delphine Lévi Alvarès, European coordinator of Break Free From Plastic 9. Sarah Moyes, Chair, Plastic Free Scotland 10. Antoinette Vermilye, co-founder, Gallifrey Foundation 11. Pauline Meechan, Treasurer - Sherwood Forest Friends of the Earth 12. Maria Westerbos, Founder & Director Plastic Soup Foundation Page 4 of 24 13. Claire Stephenson, Spokesperson, Frack Free Lancashire 14. Jennifer Dixon, Frack Free East Yorkshire 15. Bob Street, Co-Ordinator, Coal Aston & Dronfield Against Fracking 16. Eilidh Robb, COP26 Coordinator, UK Youth Climate Coalition, 17. Norman Philip, Local Group Coordinator, Friends of the Earth Falkirk Page 5 of 24 18. Tammy Murphy, Medical Advocacy Director, Physicians for Social Responsibility Pennsylvania USA 19. Pauline Meechan, Coordinator of Frack free Sherwood Forest & Edwinstowe 20. Olga Speranskaya, Alexandra Caterbow, Co-Directors, HEJSupport 21. Dave Adam, Caroline and David Davis and all of Frack Free Ryedale 22. Adrian Palmer, Spokesperson Frack Free York and Villages 23. Collin Rees, Senior Campaigner, Oil Change International Page 6 of 24 24. Lorraine Inglis, Spokesperson, Weald Action Group 25. Barbara Richardson, Chair Roseacre Awareness Group 26. Sylvia May - Outreach Lead - Frack Free Isle of Wight 27. Scott Tully, Spokesperson, Glasgow Calls Out Polluters 28. Isla Scott, Frackwatch Page 7 of 24 29. Kevin Ogilvie-White, Frack Free EQS (Exmoor Quantocks Sedgemoor) 30. Greg Hewitt, Plastic Free Chesterfield 31. Carrol Muffet, CEO, Center for International Environmental Law (CIEL) 32. Emma Ruby-Sachs, Executive Director, SumOfUs 33. David Penney, Spokesperson, Keep East Lancashire Frack Free Page 8 of 24 34. John Higgins, Coordinator Fracking Free Clare 35. Vivian Stockman, executive director OVEC- Ohio Valley Environmental Coalition, Huntington, West Virginia, USA 36. Karen Feridun, Co-founder, Better Path Coalition, Pennsylvania, USA 37. Patricia J. Popple, Editor of the Frac Sand Sentinel 38. Sorcha Kavanagh- Conscious C up Campaign, Ireland 39. Susan Gough, Spokesperson, Frack Free Kirby Misperton https://www.facebook.com/groups/7504400250 52481/ http://www.llantrithyd.com/ 40. Tim Bluff-Higgins, Chair, Llantrithyd Residents Association https://www.noshalegasnb.ca/ 41. Jim Emberger, Spokesperson, New Brunswick Anti-Shale Gas Alliance Page 9 of 24 42. Dennis May, Industrial Health and Safety Advisor; Frack Free Misson 43. Karen Feridun, Founder, Berks Gas Truth, Kutztown, Pennsylvania, USA 44. James Murphy, Chair, Love Leitrim 45. Aideen McCarthy, Frack Off London 46. Devika Mokhtarzadeh, Trustee - The Savitri Waney Charitable Trust Page 10 of 24 47. Frank Schweikert, Executive Board German Marine Litter Association e.V., 48. Katrin Meyer, Head of Office German Ocean Foundation 49. Nele van den Bongardt, Project Manager Hamburg Climate Week 50. Fabienne McLellan, Co-Director International Relations, OceanCare 51. Anna Gavazzi, Trustee Fauna and Flora International Page 11 of 24 52. Helen MItchem, Gary Robinson, Karen Bannochie, Brian Davey - Ecological Economist, Frack Free Notts 53. Isla Scott, Divest Strathclyde 54. Ellie Wyatt, Spokesperson, Frack Free Sussex 55. Debra Mallard, Spokesperson, Frack Frack Surrey Page 12 of 24 56. Richard Curtin, Not Here Not Anywhere 57. Karl Hodson, Spokesperson, Frack Free Mansfield Woodhouse 58. Vicky Cann, Corporate Europe Observatory 59. Maureen McCue MD PhD, President PSR Iowa Chapter, Iowa USA 60. Ali Abbas, Frack Free Greater Manchester Page 13 of 24 61. Jill Sutcliffe, Chair, Keep Kirdford and Wisborough Green, KKWG, West Sussex, UK http://www.frackfreesussex.co.uk/kirdfor d-wisborough-green 62. Emily Mott and Ann Stewart, Markwells Wood Watch, West Sussex UK https://engb.facebook.com/MarkwellsWoodWatch/ 63. Mindy O’Brien, Voice of Irish Concern for the Environment 64. Brook Lenker, Executive Director, FracTracker Alliance. 65. Joanie Steinhaus, Program Director, Gulf of Mexico, Turtle Island Restoration Network 66. Angela Kenny, Campaign Lead, Sick of Plastic Ireland Page 14 of 24 67. Ingmar Rentzhog, Founder, WeDon’tHaveTime http://WeDontHaveTime.org 68. Juan Carlos Gracia -board member & spokesman, Plataforma Ciudadana Zaragoza sin Fractura (Spain) 69. Samuel Martín-Sosa, International coordinator, Ecologistas en Acción 70. Dr Reinhard Knof, Spokesperson, Bürgerinitiative Kein CO2 Endlager e.V. Page 15 of 24 71. Climate Change Ireland 72. FÍS NUA 73. KEEP IRELAND FRACKING FREE 74. Tomasz Wojciechowski, Polish Circular Economy Institute 75. Elizabeth Cruse, The Warriors Call Pagans United against Fracking 76. Michael Sawyer, Executive Director, Citizen’s Oil & Gas Council, Canada. Page 16 of 24 77. Suelita Rocker, Climate Activist, 350 Brazil 78. Livia Lie, Digital Strategist for 350 Latin America 79. Ignacio Zavaleta, Fracking Activist, 350 Argentina 80. Juliano Bueno de Araujo, Founder and Climate Activist of Não Fracking Brazil, Brazil 81. Rui Ogawa, fracking activist and Arayara's director 82. Aleksandra Niewczas, Chairwoman of the board, Polskie Stowarzyszenie Zero Waste. (Polish Zero Waste Association) Page 17 of 24 83. Ana Rocha, Executive Director, Nipe Fagio Tanzania 84. Sarah Stewart, President, Animals Are Sentient Beings, Inc. 85. Neil Bye, Extinction Rebellion Teesside 86. Avena Jacklin, Climate & Energy Campaign Manager, groundWork Friends of the Earth South Africa Page 18 of 24 87. Jojo Mehta, Stop Ecocide International 88. Holly-Anna Petersen, Christian Climate Action 89. Susana Fonseca - ZERO - Association for the Sustainability of the Earth System 90. Michael Vickery, Frack Free Yeovil https://www.planetforward.org/users/woodrow 91. Woodrow W. Clark II MA3 PhD http://frackfreedudleston.org.uk/ 92. Jean Hesketh, co-ordinator for Frack Free Dudleston Page 19 of 24 93. Vamsi Sankar Kapilavai, Senior Researcher, Citizen consumer and civic Action Group 94. Angus Ho, Executive Director. Greeners Action, Hong Kong 95. Jane Quin, for Pietermaritzburg Climate Crisis Coalition 96. Paul Beer, Spokesperson The British Druid Order Page 20 of 24 97. Climaxi, Belgium 98. Antwerp Shale Gas Free , Belgium 99. Inland Ocean Coalition 100. USA Mary Gutierrez, Earth Action, Inc. Page 21 of 24 101. Rebecca Roter, Chairperson, Breathe Easy Susquehanna County, Montrose PA USA 102. Sigrun Franzen, Berliner Wassertisch e.V. 103. Belgium Grootouders voor het klimaat - Grandparents for Climate Page 22 of 24 104. Youth for Climate, Belgium YOUTH FOR CLIMATE 105. #IneosWillFall Coalition, Antwerp, Belgium 3' FA Page 23 of 24 Sources: [i] https://news.sky.com/story/coronavirus-ineos-tycoons-venture-seeks-government-loan-11987002 https://www.thetimes.co.uk/article/ineos-venture-seeks-500m-state-loan-g5dtpnwvb [ii] https://www.independent.co.uk/news/uk/home-news/jim-ratcliffe-monaco-tax-avoidancebillionaire-ineos-john-mcdonnell-a8783626.html [iii] Food & Water Watch. „How Fracking Supports the Plastic Industry“. Available at: https://www.foodandwaterwatch.org/sites/default/files/ib_1702_fracking-plastic-web.pdf CIEL. „Plastic & Health – The hidden costs of a plastic planet. Available at: https://www.ciel.org/news/plasticandhealth/ [iv] https://www.foodandwatereurope.org/wpcontent/uploads/2017/06/FoodWaterEuropePlasticsPipelineissueBriefJune62017.pdf https://www.boell.de/en/2019/11/04/corporations-blaming-consumer [v] https://www.ft.com/content/7ddadc60-2edd-11e9-8744-e7016697f225 https://www.theguardian.com/environment/2017/apr/03/ineos-leads-lobbying-effort-to-get-out-ofpaying-green-tax [vi] https://www.ineos.com/inch-magazine/articles/issue-7/230m-loan-guarantee-helps-ineos-raisefinance-for-grangemouths-future/ [vii] https://www.ineos.com/globalassets/investor-relations/public/annual-reports/annual-reportblocks/2019-igh-sa-annual-report_final.pdf [viii] https://www.foodandwatereurope.org/wpcontent/uploads/2017/11/FoodandWaterEuropeReportIneosChequeredRecordinEuropeNov2017.pdfin [ix] https://www.falkirkherald.co.uk/news/environment/ineos-firms-grangemouth-helped-it-becomescotlands-worst-air-polluter-966059 [x] https://www.bbc.com/news/uk-39001011 https://www.bbc.com/news/uk-scotland-44196556 https://www.newscientist.com/article/2205155-plastic-producers-urged-to-take-responsibility-fornurdle-pollution/ [xi] https://www.mo.be/en/report/great-spill-plastics-industry-mountains-nurdles-beach https://www.plasticsoupfoundation.org/en/2020/01/plastic-soup-foundation-takes-legal-actionagainst-structural-plastic-pollution/ https://www.plasticsoupfoundation.org/en/2020/05/millions-of-plastic-nurdles-pollute-oslofjord-innorway/ Page 24 of 24