The approaching 28th Conference of the Parties (COP28) Climate Change Summit in Dubai places the oil and gas industry at a pivotal crossroads as it demanded radical emissions reduction to align with the 1.5 °C global temperature rise limit set by the Paris Agreement.
In a report by the Manila Bulletin, the International Energy Agency (IEA) singled out the importance of all oil and gas companies to confront their emissions, insisting on a 60% reduction in sector emissions by 2030 and a simultaneous 75% cut in methane emissions.
By acknowledging the critical role of the oil and gas sector in the ‘energy transition agenda,’ the IEA urged a notable reallocation of financial resources, emphasizing that global firms allocated only 2.5% of capital spending to clean energy ventures in the previous year.
To align with the agreement targets, the IEA prescribed that oil and gas producers should allot 50% of their capital expenditures to clean energy projects by 2030 as a challenge to the industry to move beyond conventional carbon capture technologies.
The IEA’s projections specified that under current policy settings, achieving the 1.5 °C limit would entail an unrivaled 32 billion tonnes of carbon capture by 2050, requiring investments of up to $3.5 trillion by the 2030s.
Beyond the oil and gas industry, IEA Executive Director Fatih Birol will present a comprehensive ‘energy package’ at COP28, outlining five key pillars for global adherence to 2030 climate goals.
These pillars include tripling global renewable energy capacity, doubling the rate of energy efficiency improvements, securing commitments from oil and gas companies to advance clean energy transitions and reduce emissions, establishing large-scale financing mechanisms for clean energy investments, and adopting measures for an orderly decline in fossil fuel use.
