Quantifying corporations' climate damage

Summary

Marketplace Morning Report: Quantifying Corporations' Climate Damage Release Date: April 24, 2025

In this episode of Marketplace Morning Report, host David Brancaccio delves into the groundbreaking efforts to pinpoint the economic liabilities of major corporations for their role in climate change. The episode also explores the current state of the U.S. economy as reported by the Federal Reserve's Beige Book and highlights initiatives to address the growing demand for skilled tradespeople in Baltimore. The episode concludes with a brief update from the International Monetary Fund on global trade disputes.

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1. Assessing Corporate Responsibility for Climate Change

[00:01 - 02:00]

David Brancaccio opens the discussion by introducing a significant study aimed at quantifying the economic damage caused by climate change at the corporate level. Joining him is Nova Safo, who provides an in-depth overview of the research.

Nova Safo explains that a team from Dartmouth College published their findings in Nature, where they developed a sophisticated computer modeling technique to attribute the warming of Earth's atmosphere to specific corporations. The study analyzed 111 companies and estimated the total economic cost of climate change to be $28 trillion—comparable to the size of the entire U.S. economy.

"This is about lawsuits helping courts evaluate liability claims for losses resulting from climate change and weather-related disasters."
— Nova Safo [00:34]

Brancaccio underscores the implications of this research, highlighting that approximately 10 fossil fuel companies are responsible for over half of the total climate damage costs identified. This quantification provides a robust foundation for ongoing and future legal actions against these corporations.

The study's authors emphasize that with comprehensive historical emissions data and extensive climate records, courts are better equipped to assign liability in climate-related lawsuits. Nova mentions that there have been 68 lawsuits globally, predominantly targeting fossil fuel giants, with Vermont recently passing a law aimed at holding companies accountable for extreme weather events like flooding.

Experts in the field have lauded the study as a pivotal advancement in establishing corporate accountability for environmental damage.

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2. Federal Reserve’s Beige Book: Economic Outlook Amid Uncertainty

[02:00 - 03:03]

Transitioning to the current economic landscape, David Brancaccio introduces insights from the Federal Reserve's Beige Book. Diane Swonk, Chief Economist at KPMG, provides an analysis of the report.

Diane Swonk describes the economy as being "in transition," with emerging uncertainties casting metaphorical storm clouds over certain sectors. Despite these challenges, the economy continues to advance.

"There was a lot of comments about some tariffs pushing up prices in the production line and in the pipeline."
— Diane Swonk [02:21]

Swonk highlights that businesses are grappling with the repercussions of ongoing trade wars, which have led to increased production costs. Many firms are adopting a cautious approach to hiring, choosing to wait and observe the resolution of trade tensions before making staffing decisions. This cautious stance has created a state of "trade war purgatory," leaving businesses in a state of limbo.

The Beige Book reflects a resilient yet hesitant economy, with firms balancing growth against the backdrop of global trade uncertainties.

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3. Rebuilding Baltimore’s Francis Scott Key Bridge: Addressing the Skilled Trades Shortage

[03:03 - 06:33]

David Brancaccio shifts focus to a local infrastructure project in Baltimore: the reconstruction of the Francis Scott Key Bridge, which was damaged by a cargo ship last year. Scheduled for completion by October 2028, this massive undertaking has spotlighted the urgent need for skilled tradespeople, particularly welders.

Stephanie Hughes reports on the efforts by the Community College of Baltimore County (CCBC) to train the next generation of welders to meet this demand.

Welding Instructor Josh Dykas is featured demonstrating welding techniques to his students. He emphasizes the importance of safety and adaptability in various working conditions.

"Working in the trades, hands, eyes, back. Those are your big things that you really want to take care of."
— Josh Dykas [05:34]

The segment showcases the practical aspects of welding training, including hands-on practice and safety protocols. Student experiences are also highlighted, such as Hunter Lylak, a 20-year-old aiming to enter the workforce in ship preparation or bridge construction. His journey underscores the personal challenges and rewards of learning a trade.

Brad Austin, a 63-year-old utility worker, shares his motivations for formal welding training, aiming to refine decades of practical experience. His participation illustrates the value of continual education and skill enhancement in the trades.

"Just knowing, you know, the principles behind it and correcting probably 50 years of bad habits is very useful."
— Brad Austin [06:15]

The CCBC program, in partnership with Earlbeck Gases and Technologies, provides essential training to meet the burgeoning demand for welders, with median salaries around $56,000 nationally. This initiative not only supports local infrastructure projects but also addresses the looming shortage of skilled tradespeople as the workforce ages.

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4. International Monetary Fund Urges Resolution of Trade Disputes

[06:33 - 07:05]

In the final segment, David Brancaccio reports on a statement from the International Monetary Fund (IMF) managing director. She calls for swift action to resolve ongoing trade disputes, particularly emphasizing the negative impact of U.S. import taxes and retaliatory measures from China and other nations.

"...unpredictability arising from US Import taxes and responses from China and beyond is, quote, bad for business."
— IMF Managing Director [06:33]

The IMF official warns that unresolved trade tensions could stifle global economic growth, urging countries to engage in dialogue and negotiate terms that support sustainable economic development.

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Conclusion

This episode of Marketplace Morning Report presents a comprehensive overview of pivotal economic and environmental issues. From the innovative approach to holding corporations accountable for climate damage to the intricate dynamics of the current U.S. economy and the critical need for skilled trades in infrastructure projects, the report provides valuable insights for listeners seeking to stay informed on pressing matters shaping the global landscape.

Transcript

[David Brancaccio]

An attempt to figure the costs of climate change down to the Exxon, Shell or Chevron level. I'm David Brancaccio in Los Angeles. Scientists say they've come up with a way to measure how much liability individual corporations would have for the economic damage caused by climate change. The total cost over decades is calculated at $28 trillion, about the size of the US economy. The whole thing in a year with researchers saying 10 fossil fuel companies are responsible for more than half of that marketplace's. Nova Safo is here with details.

[Nova Safo]

Yeah, interesting new study, David. It comes from a research team at Dartmouth College published in the journal Nature. Researchers say they've developed a computer modeling technique to figure out how much of the heating up of the Earth's atmosphere various major corporations are responsible for. Now they looked at 111 companies and this is a backwards looking effort looking at figures up until 2020. So the numbers are still going up because the Earth's atmosphere continues to warm.

[David Brancaccio]

Determining responsibility to do what? Sue companies. Right.

[Nova Safo]

Well, that's one of the study's authors. Very plainly put goal. This is about lawsuits helping courts evaluate liability claims for losses resulting from climate change and weather related disasters. And that concept is a global phenomenon here in the US Vermont last year passed a law trying to hold companies accountable for weather disasters like extreme flooding. We've also seen a farmer lawsuit in Peru, 68 in total around the world, mostly targeting fossil fuel companies. And that's according to one research group that's been keeping track of the lawsuits. And what the study's authors say is that they now have a lot more data to help in determining liability in those lawsuits because we have a historical record of emissions and we now have a robust climate data going back several decades. Put those together and that's how they've come up with this new model. Other climate scientists who looked at the new study, David, say it is a step forward in determining liability.

[David Brancaccio]

My colleague novasafo. Thank you. Turning now to the Federal Reserve's not so zestily named Beige book. This is the 12 Federal Reserve bank regions doing fieldwork, asking businesses, how's it going? It finds the economy still ticking along under some gathering clouds. Diane Swonk is chief economist at the audit, tax and advisory firm kpmg.

[Diane Swonk]

It shows that the economy is in transition and storm clouds are sort of forming in some areas. But yeah, the economy is still moving forward according to the Beige Book. What was interesting in it was how much uncertainty. There was a lot of comments about some tariffs pushing up prices in the production line and in the pipeline. The question is, you know, what's going to show up on consumer shelves? Not quite there yet, still too early. But also the hesitation on hiring. That was sort of something that really struck me was that many firms were talking about waiting to see what would happen with the trade wars before they staffed up or made layoff decisions as well. So you sort of get this sense of caught in a trade war purgatory.

[David Brancaccio]

Diane Swonk with us every Thursday. The plans are under development to rebuild Baltimore's Francis Scott key Bridge by October 2028. That's the one that got hit by the cargo ship last year. To do that work, Baltimore will need a lot of tradespeople, including those who know how to melt metal. Together with more than a fifth of welder in the US over the age of 55, the need for people with these skills will rise in the coming years. Now the Community College of Baltimore county wants to train people who know their way around MIG or tig. Marketplace's Stephanie Hughes reports.

[Stephanie Hughes]

Welding instructor Josh Dykis commands everyone's attention as he demonstrates a new technique.

[Josh Dykas]

I'm going to do a nice steady drag the whole way down. Go ahead and go dark.

[Stephanie Hughes]

The dozen or so students in this fundamentals class just outside Baltimore all go dark, that is pull their welding mass down over their eyes. They watch Dikus drag an electrode along another piece of metal, melting both.

[Josh Dykas]

Any questions?

[Stephanie Hughes]

This lesson is at Earlbeck Gases and Technologies. It's a welding supply company that partners with the Community College of Baltimore County. The students go into booths and start working.

[Josh Dykas]

Once you get some welds down, let me or Mr. Bill take a look at it.

[Stephanie Hughes]

One student, 20 year old Hunter Lylak, isn't happy with his first attempt.

[Hunter Lylak]

I already know I ran too fast, lilac says.

[Stephanie Hughes]

Learning to weld can be scary. In an earlier class, he held his torch too close to the metal and sparks went everywhere.

[Hunter Lylak]

It didn't hurt or nothing, thankfully, but it did freak me the out a couple of times.

[Stephanie Hughes]

Lilac, maybe appropriately, is wearing a heavy metal band T shirt under his flame retardant jacket. He says he's here because he wants to work with his hands and he thinks welding looks really cool. He's hoping to get work preparing ships or building the new Key Bridge. Instructor Josh Dykas says welders have to be willing to work in a variety.

[Josh Dykas]

Of conditions outside, in the middle of summertime, in the middle of wintertime, things like pipe welding, iron working, you're working at heights, working in confined spaces and confined areas, and it can be dangerous.

[Stephanie Hughes]

Dikus, who's 32, has had three of his fingertips cut off and reattached, plus a couple of herniated back discs and more burns than he can keep track of. He emphasizes safety to his students.

[Josh Dykas]

You know, working in the trades, hands, eyes back. Those are your big things that you really want to take care of.

[Stephanie Hughes]

Pay for welders varies based on skill level, job type and location. Nationally, the median salary is about $56,000, and some people who've been welding for years are using this class to level up.

[Brad Austin]

These guys can all hear pretty good about being the old man, but that's alright. I've earned it.

[Stephanie Hughes]

Brad Austin is 63 and works in utilities. His employer, Baltimore county, is footing the bill for him and a few co workers to be here. This class usually costs about $2,000. Austin says he learned to weld growing up on a farm, and this is his first formal training.

[Brad Austin]

Just knowing, you know, the principles behind it and correcting probably 50 years of bad habits is very useful.

[Stephanie Hughes]

Austin calls himself a jack of all trades. He hopes taking this class for beginners will get him closer to mastering this one. In Baltimore, I'm Stephanie Hughes for Marketplace.

[David Brancaccio]

And the head of the International Monetary Fund today urged countries to move swiftly to resolve trade disputes she sees as threatening global economic growth. The IMF managing director says the unpredictability arising from US Import taxes and responses from China and beyond is, quote, bad for business. In Los Angeles, I'm David Brancaccio, Marketplace Morning Report from APM American Public Media.

[Janeli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Janeli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined Wherever you get your podcasts.