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- 85% of CO2 Emissions: Fossil fuel combustion and industrial processes are the largest global sources of CO2.
- Methane Opportunity: The oil and gas industry represents a critical near-term opportunity for impactful climate action.
- Science-Based Targets: The SBTi is developing rigorous methodologies for oil and gas companies to align with the 1.5°C Paris Agreement goal.
The oil and gas (O&G) sector faces an urgent call to decarbonize. Responsible for 85% of CO2 emissions and a significant portion of global methane emissions, this industry holds a pivotal role in combating climate change. The Science Based Targets initiative (SBTi) is taking decisive steps to guide O&G companies toward setting and achieving emission reduction targets that align with the latest climate science.
“To meet the goals of the Paris Agreement and avoid catastrophic climate breakdown, the sector must radically transform,“ the SBTi asserts. This transformation is critical to limit global temperature rise to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.
The SBTi’s Oil and Gas Standard development project is at the forefront of this effort, offering a structured approach to help O&G companies navigate the net-zero transformation. The initiative aims to create science-based target-setting methodologies, enabling companies, investors, and stakeholders to align with ambitious climate goals.
“With its considerable assets, the O&G sector wields enormous power to drive ambitious climate action and build the net-zero economy we urgently need,“ the SBTi emphasizes.
The project focuses on three critical areas: supply, demand, and finance. O&G companies are encouraged to set science-based targets to reduce emissions from fossil fuel production, while end-users must cut down on fossil fuel consumption. Financial institutions are also urged to disclose, halt, and transition their fossil fuel sector activities.
“Financial institutions have incredible potential to influence the real economy to cut fossil fuel demand and drive clean energy investment,“ the SBTi highlights.
The development of the Oil and Gas Standard is supported by an Expert Advisory Group (EAG), composed of technical experts from various organizations and companies. This group plays a crucial role in ensuring that the standards are scientifically sound and effective.
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Since its recommencement in 2022, the project has made significant progress, with the SBTi releasing an external expert review in January 2023. This review outlined key technical and methodological issues, guiding further research and activities.
“The O&G sector is uniquely positioned to lead the way in global decarbonization efforts,“ the SBTi concludes. The ongoing work to develop and implement these standards is essential to ensuring that the oil and gas industry can contribute meaningfully to a sustainable future.