Devendra Kumar
The United Nations climate talks have seen a significant development, as 50 oil companies, representing nearly half of global production, have pledged to reach near-zero methane emissions and end routine flaring in their operations by 2030. The announcement was made by Sultan al-Jaber, the president of the Cop28 summit and head of the Abu Dhabi National Oil Company. This move is seen as a crucial step in slashing the world’s greenhouse emissions by nearly half in seven years to limit global warming to 1.5 degrees compared to pre-industrial times.
Mr. al-Jaber emphasized that having the industry’s backing is essential to achieving this goal, and that the world will break down if they do not fix the energies used today, mitigate their emissions at a gigaton scale, and rapidly transition to zero-carbon alternatives. The pledge includes major national oil companies such as Saudi Aramco, Brazil’s Petrobras, and Sonangol from Angola, as well as multinationals like Shell, TotalEnergies, and BP.
Methane is a potent greenhouse gas, with a global warming potential of over 80 times that of carbon dioxide. It can be released during various points of oil and gas operations, ranging from fracking to storage, and is a significant contributor to climate change. The announcement is significant because methane leaks and flaring can largely be solved with current technologies and changes to operations, yet oil and gas companies have historically prioritized expanding production over mitigating by-products.
While environmental groups have criticized the deal, suggesting it is a smokescreen to delay the phase-out of fossil fuels, others see it as a significant contribution to fighting climate change. Marcelo Mena, CEO of Global Methane Hub, rejected the notion that near-zero methane emission commitments are a way to delay phase-out, saying that oil companies should not be allowed to leak methane to supercharge climate change.
The COP28 Presidency launched the Oil and Gas Decarbonization Charter, a global industry charter dedicated to speeding up climate action and achieving high-scale impact across the oil and gas sectors. Saudi Arabia and the United Arab Emirates, both major oil-producing nations, have backed the charter. The deal does not address the oil and natural gas being burned off by end-users, which creates greenhouse gases fueling climate change. Still, the announcement marks a significant step towards reducing emissions in the oil and gas sector.