On Tuesday, an Ecuadorian court ruled that Chevron Corp. should be made to pay $8.6 billion as restitution for pollution in the Amazon jungle.
This is being considered one of the most important environmental rulings of all time, with only the Deepwater Horizon spill in the Gulf of Mexico having larger ramifications.
Unfortunately, it is unlikely that the Ecuadorian government will see any of this money anytime soon.
Chevron has not expressed any desire to pay this money, stating that it will fight the ruling both in the Ecuadorian appeals courts, as well as internationally. The case has already been going on for 18 years, and while this seems like a landmark ruling, it doesn't look like it signifies the end of the case.
When looking at the Chevron case, it's important to look at the time when the pollution occurred. The pollution being disputed in this case occurred in the 1970s and 1980s, a time when environmental damage was not taken with the seriousness that it is now.
At that point in time, it was all about creating technology that could operate more efficiently, with little regard given to the damage it would do to the surrounding areas.
Obviously, times have changed. These days, there is much more concern over the environmental damage done by corporations, as the reaction to the BP oil spill has indicated. If the pollution being discussed in this case had occurred in recent years, there likely would have been a similar uproar.
It is also important to realize that the Chevron Corp. was not actually the one responsible for the damage that was done. That would be Texaco Petroleum Co., which Chevron acquired in 2001. As a result of this, Chevron may not feel a sense of corporate responsibility.
We believe Chevron is responsible for the damages here, but we don't expect it to acknowledge that anytime soon. Chevron is simply too powerful of a corporation. As a relatively small nation, Ecuador probably doesn't have the resources to take on a corporation of Chevron's stature.
In addition, the lengthy nature of the legal process is working heavily against Ecuador. Considering this battle has already gone on for nearly two decades, it's not hard to picture it continuing on without a resolution anytime soon.
While it would be nice for Chevron to acknowledge its responsibility and pay the damages, we just don't see it happening. This is more than likely a case of a corporation having too much power for the little guy to be able to bring it down, a harsh reality of the world we live in.
