Global Industry Takes Aim at Climate Change with New Initiative for Oil and Gas Sector

Global Industry Takes Aim at Climate Change with New Initiative for Oil and Gas Sector

In a major development for global climate action, COP28 President Dr. Sultan Al Jaber and the Kingdom of Saudi Arabia have launched the Oil and Gas Decarbonization Charter (OGDC). This industry-specific initiative aims to drive meaningful progress in combating climate change and has already secured the commitment of 50 major oil and gas companies, representing over 40% of global oil production.

Significantly, the OGDC has witnessed unprecedented participation from National Oil Companies (NOCs), who make up over 60% of the signatories. This marks a historic shift towards decarbonization within this crucial sector.

The OGDC forms a key component of the Global Decarbonization Accelerator (GDA), launched at the World Climate Action Summit on December 2nd. The GDA works across three pillars:

  1. Scaling the energy system of the future: This involves investing in renewable energy sources and infrastructure, ensuring a smooth transition to a low-carbon future.
  2. Decarbonizing the present energy system: This focuses on reducing emissions from existing energy sources through technologies like carbon capture and storage (CCS) and cleaner energy production methods.
  3. Addressing methane and other non-CO2 greenhouse gases: This prioritizes tackling potent greenhouse gases emitted during oil and gas operations, alongside CO2 emissions reduction.

By simultaneously tackling both energy demand and supply, the GDA aims for a comprehensive and impactful transformation of the global energy landscape.

The launch of the OGDC and its integration within the GDA framework mark a critical turning point in the fight against climate change. With leading oil and gas companies now actively contributing to decarbonization efforts, there is renewed hope for achieving a cleaner and more sustainable future for all.