Around 50 companies, which represents over 40% of global oil production, have pledged their commitment to the Oil and Gas Decarbonization Charter (OGDC)
(Credit: C Morrison from Pixabay)
The COP28 Presidency, in collaboration with the Kingdom of Saudi Arabia, has officially introduced the groundbreaking Oil and Gas Decarbonization Charter (OGDC). This global industry charter is designed to accelerate climate action and foster significant impact within the oil and gas sectors.
As of now, 50 companies have pledged their commitment to the OGDC, collectively representing over 40 percent of global oil production. Notably, National Oil Companies (NOCs) account for more than 60 percent of the signatories, marking the highest-ever participation of NOCs in a decarbonization initiative.
COP28 President Dr. Sultan 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 decarbonization.”
The signatories to the charter have committed to achieving net-zero operations by 2050 at the latest. They also aim to cease routine flaring by 2030 and minimise upstream methane emissions. Furthermore, they pledge to pursue industry best practices for emission reductions, undertaking various key actions that include:
Investing in the Energy System of the Future: This involves dedicating resources to renewables, low-carbon fuels, and negative emissions technologies.
Enhancing Transparency: Signatories are committed to increasing transparency by improving measurement, monitoring, reporting, and independent verification of greenhouse gas emissions. This also extends to demonstrating their performance and progress in reducing emissions.
Aligning with Industry Best Practices: There is a collective effort to align with broader industry best practices to expedite the decarbonization of operations. The aspiration is to implement current best practices by 2030, collectively reducing emission intensity.
Addressing Energy Poverty: The signatories recognise the importance of reducing energy poverty and are committed to providing secure and affordable energy to support the development of all economies.
The Oil and Gas Decarbonization Charter (OGDC) acknowledges the collective nature of the challenge posed by climate change. It emphasises the need for robust and concentrated efforts from both energy producers and consumers, advocating for fundamental changes across society and the energy sector. Additionally, the OGDC underscores the importance of international collaboration to drive the energy transition and mitigate greenhouse gas emissions originating from the oil and gas industry.
Recognising that decarbonisation alone is not sufficient, the signatories emphasize the necessity for the oil and gas sector to take further actions. These actions include active engagement with customers, strategic investments in the energy system of the future, and a commitment to increased transparency through improved measurement, reporting, and independent verification processes. This holistic approach aims to address the multifaceted challenges posed by climate change and drive positive, sustainable change within the industry.