The Paris Agreement has set a clear direction of travel for the economy in decades to come. In order to hold global warming well below 2C and aim to limit warming to 1.5C, we need to reach net-zero greenhouse gas emissions in the next three to five decades.
The combustion of fossil fuels represents the single largest source of carbon dioxide emissions. The oil & gas industry is also one of the largest contributors of methane emissions. On the other hand, the oil & gas industry is a holder of considerable scientific, technical, economic and financial assets that can provide significant contributions to the low-carbon transition.
As such, the oil & gas sector is highly exposed to low-carbon transition risks (and opportunities) and needs to undergo significant transformation for society to meet the goals adopted by over 195 countries through the Paris Agreement.
The purpose of this project is to develop science-based target-setting methodologies that allow stakeholders, including companies, investors, governments and civil society, to understand the alignment of oil & gas company emissions reduction targets with the level of transformation required to meet the goals of the Paris Agreement. The projects first and foremost will address embedded emissions in fuel supplied, but will also seek to address scope 1 emissions (energy and methane process emissions). At a later stage the project should consider scope 2 emissions and links to refinery and petrochemical industry, consistent with the SBTi’s chemical sector development.
The project was launched by CDP and started November 2019 with a first meeting of its technical working group. A public consultation will take place between July and the end of September 2020. A methodology will be delivered to the SBTi in October 2020.
A technical working group composed of approximately 20 members representing civil society organizations, oil & gas companies, investors, policymakers, academics, and other experts was convened. Twelve meetings are to be held before June 2020. A public consultation will then take place between July and the end of September 2020 before a final methodology is delivered to the SBTi for final approval. This development occurs simultaneously to the ACT – Assessing low-Carbon Transition Oil and Gas sector methodology development, convened by ADEME and CDP and that has its own Technical Working Group. Several meetings have been held together between the SBT and ACT Technical Working Groups.