Oil Majors Make Billion Dollar Pledge
The United Nations Paris Agreement on Climate Change entered into force on November 4, and to mark the occasion, the Oil and Gas Climate Initiative (OGCI) announced an investment of $1 billion over the next 10 years to develop and accelerate the commercial deployment of innovative low emissions technologies.
The OGCI is led by the heads of 10 oil and gas companies that aim to lead the industry response to climate change: BP, CNPC, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and Total. Together they represent one fifth of the world’s oil and gas production.
The OGCI was established following discussions during the 2014 World Economic Forum Annual Meeting and was officially launched at the U.N. Secretary General’s Climate Summit in New York in September 2014.
OGCI Climate Investments (OGCI CI) will aim to deploy successfully-developed new technologies among member companies and beyond. It will also identify ways to cut the energy intensity of both transport and industry. Working in partnership with like-minded initiatives across all stakeholder groups and sectors, the OGCI CI believes its emission reduction impact can be multiplied across industries.
In a joint statement, the heads of the 10 oil and gas companies said: “The creation of OGCI Climate Investments shows our collective determination to deliver technology on a large scale that will create a step change to help tackle the climate challenge. We are personally committed to ensuring that by working with others our companies play a key role in reducing the emissions of greenhouse gases, while still providing the energy the world needs.”
Through discussions with stakeholders and detailed technical work, the OGCI has identified two initial focus areas: accelerating the deployment of carbon capture, use and storage; and reducing methane emissions from the global oil and gas industry in order to maximize the climate benefits of natural gas. The OGCI believes that these are areas where the oil and gas industry has meaningful influence and where its collaborative work can have the greatest impact.
Beyond this, OGCI CI will make investments that support improving energy and operational efficiencies in energy-intensive industries. OGCI CI will also work closely with manufacturers to increase energy efficiency in all modes of transportation.
A CEO and management team for OGCI Climate Investments will be announced in the near future.
Oil and gas producers account for more than half of the energy that powers world economies today. They also account for about five percent of total manmade greenhouse gas emissions. The use of oil and gas in other sectors including power, industry and transport accounts for an additional 32 percent.
In 2017, OGCI will begin a program of investments and explore the further potential for partnership with other commercial and government organizations. OGCI has also identified an additional strategic focus for 2017. That is to begin work analyzing how OGCI could best be involved in realizing the kinds of approaches that will be required to achieve net zero emissions in the second half of the century.