Dubai: Fifty oil and gas companies took a historic decarbonisation pledge at COP28 in Dubai on Saturday after the UAE and Saudi Arabia launched a landmark Oil and Gas Decarbonisation Charter (OGDC).
Other milestones at the World Climate Action Summit at COP28 saw the world coming together for tripling renewable energy and the announcement that $1 billion will be mobilised for methane abatement.
The global industry Charter is dedicated to speeding up climate action and achieving high-scale impact across the oil and gas sectors.
UAE’s Adnoc and Saudi’s Aramco are among the 50 companies - which all together are representing more than 40 per cent of global oil production - that have signed on to the OGDC.
With National Oil Companies (NOCs) representing over 60 per cent of signatories, it is the largest-ever number of NOCs to commit to a decarbonisation initiative.
The Charter formalised COP28 President Dr Sultan Al Jaber’s calls for the industry to align around net zero by or before 2050, zero-out methane emissions, eliminate routine flaring by 2030 and to continue working towards industry best practices in emission reduction.
The oil and gas industry directly and indirectly accounts for 42 per cent of global emissions. Currently the oil and gas industry leaks about 2 to 3 percent of all the gas it produces directly into the atmosphere, adding to global warming, according to EDF, Environmental Defence Fund, a US-based nonprofit environmental advocacy group.
Currently the oil and gas industry leaks about 2 to 3 percent of all the gas it produces directly into the atmosphere, adding to global warming, according to EDF, Environmental Defence Fund, a US-based nonprofit environmental advocacy group.
While making the announcement, Dr Al Jaber said: “The launch of the OGDC is a great first step — and whilst many national oil companies have adopted net-zero 2050 targets for the first time, I know that they and others, can and need to do more. We need the entire industry to keep 1.5C within reach and set even stronger ambitions for decarbonisation.”
“I am committed to both inclusivity and transparency. If we want to accelerate progress across the climate agenda, we must bring everyone in to be accountable and responsible for climate action. We must all focus on reducing emissions and apply a positive can-do vision to drive climate action and get everyone to take action. We need a clear action plan, and I am determined to deliver one,” added Dr Al Jaber, who is also the UAE Minister of Industry and Advanced Technology and Group CEO of Adnoc.
Renewables and Energy Efficiency Pledge
As many as 117 countries signed the Global Renewables and Energy Efficiency Pledge (GREE Pledge), said Dr Al Jaber.
The countries agreed to triple worldwide installed renewable energy generation capacity to at least 11,000 gigawatts and to double the global average annual rate of energy efficiency improvements from around two per cent to more than four per cent every year until 2030.
“117 countries have endorsed the pledge and I am here to capitalise on this opportunity to be loud and clear about my continued persistence of asking all parties to join,” said Dr Al Jaber.
The pledge looks to drive transformational change through effective policymaking, planning, and major investment decisions.
US: $568 million in concessional lending
The Energy segment of the World Climate Action Summit also saw the US announcing $568 million in concessional lending for clean energy manufacturing.
“Today, I am proud to announce that the United States is launching a new partnership to help build clean energy supply chains around the globe. We are also announcing $568 million in concessional lending as part of this partnership to help drive investment in clean energy manufacturing,” US Vice President Kamala Harris announced.
Global Decarbonisation Accelerator
The OGDC and GREE Pledge are key projects under another landmark initiative launched to accelerating the energy transition, the Global Decarbonisation Accelerator (GDA).
Dr Al Jaber unveiled GDA which envisions a series of landmark initiatives designed to speed up the energy transition and drastically reduce global emissions.
What is the GDA?
The GDA is a comprehensive plan for system-wide change, addressing the demand and the supply of energy at the same time. The GDA is focused on three key pillars: rapidly scaling the energy system of tomorrow; decarbonising the energy system of today; and targeting methane and other non-CO2 greenhouse gases.
The GDA has been informed by the thinking of key stakeholders, including international organisations, governments and policy makers, NGOs, and CEOs from every industrial sector.
$1 billion for methane abatement
The GDA will address methane and other non-CO2 greenhouse gases through economy-wide methane-emission reduction. In support of this $1 billion will be mobilised for methane abatement projects. Methane is a gas that is way stronger than carbon dioxide in warming the planet.
Investments worth $75 billion will be required to reduce global oil and gas methane emissions by 2030 under the International Energy Agency’s Net Zero by 2050 scenario.
UAE to co-fund Industrial Transition Accelerator
The GDA also included the launch of the Industrial Transition Accelerator (ITA), which will accelerate decarbonisation across key heavy-emitting sectors.
The UAE and Bloomberg Philanthropies will co-fund ITA that can help to decarbonise heavy industry.
“Its goal is to drive more capital to technology that can help to decarbonise heavy industry, including promising new energy sources like green hydrogen. It will also help companies develop plans to cut carbon emissions, and help develop policies that support and incentivize those cuts. It brings together a great group of partners including UN Climate Change, the International Energy Agency, Mission Possible partnership, RMI (Rocky Mountain Institute), and the Energy Transition Commission,” announced Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions and Founder of Bloomberg Philanthropies.
Climate change collective challenge
The OGDC recognises that climate change is “a collective challenge that requires strong and focused action from producers and consumers of energy, fundamental changes across society and the energy sector, as well as international collaboration, to advance the energy transition and reduce greenhouse gas emissions from oil and gas.”
Beyond decarbonisation, signatories recognise it is essential for the oil and gas industry to increase actions, including engaging with customers, investing in the energy system of the future, and increasing transparency in measurement, reporting and independent verification.
Signatories to OGDC
National Oil Companies: ADNOC, Bapco Energies, Ecopetrol, EGAS, Equinor, GOGC, INPEX Corporation, KazMunaiGas, Mari Petroleum, Namcor, National Oil Company of Libya, Nilepet, NNPC, OGDC, OMV, ONGC, Pakistan Petroleum Limited (PPL), Pertamina, Petoro, Petrobras, Petroleum Development Oman, Petronas, PTTEP, Saudi Aramco, SNOC, SOCAR, Sonangol, Uzbekneftegaz, ZhenHua Oil, YPF.
Integrated Oil and Gas Companies: Azule Energy, BP, Cepsa, COSMO Energy, Crescent Petroleum, Dolphin Energy Limited, Energean Oil & Gas, Eni, EQT Corporation, Exxonmobil, ITOCHU, LUKOIL, Mitsui & Co, Oando plc, Occidental Petroleum, Puma Energy (Trafigura), Repsol, Shell, Total Energies, Woodside Energy Group.f
