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Industry's COP28 Pledge Gets Mixed Reviews

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Oil and gas companies attending the UN’s COP28 climate summit in Dubai this week will have to show they mean business after signing up for an oil and gas decarbonization charter that has been praised as an important step by some and criticized as insufficient by others. Some of the industry's biggest companies signed up for the charter — brokered by COP28 President and Abu Dhabi National Oil Co. (Adnoc) CEO Sultan al-Jaber — under which they committed to net-zero oil and gas operations by 2050 and to end routine flaring and reach near-zero upstream methane emissions by 2030. A total of 50 companies signed up for the pact, launched by the COP28 presidency and Opec kingpin Saudi Arabia, representing more than 40% of global oil and gas production. They include 30 national oil companies (NOCs) — many of whom have done little so far to address their methane emissions — and 20 international oil companies (IOCs). The pact includes Adnoc, Saudi Aramco, Exxon Mobil, Shell, TotalEnergies, BP, Equinor, Petronas and OMV. Notably missing were NOCs from China, Iran, Kuwait, Russia and Venezuela as well as US major Chevron. Some oil companies previously voiced reservations about signing up to such an initiative, including Russian players that face Western sanctions and financial restrictions, which they argue may prevent them from achieving certain targets. Despite their absence, the charter has managed to bring together the largest-ever number of NOCs to commit to a decarbonization initiative, according to the United Arab Emirates’ COP28 presidency. More firms could join, too. "Fifty companies is not enough. We need every single operator or producer to be involved," UAE Energy Minister Suhail al-Mazrouei stressed.

Topics:
CO2 Emissions, Methane Emissions, Crude Oil, Flaring, COP28
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