50 Oil and Gas Companies Sign Charter to Drive Climate Action in Industries

The Oil and Gas Decarbonisation Charter (OGDC) was officially launched by COP28 Presidency and Saudi Arabia, marking a significant global industry initiative aimed at expediting climate action within the oil and gas sectors. The charter has garnered support from 50 oil and gas companies, collectively representing over 40 percent of the world's oil production.

A notable highlight of this development is the substantial participation of National Oil Companies (NOCs), accounting for over 60 percent of the charter's signatories. This represents a historic commitment by the largest-ever number of NOCs to a decarbonisation initiative, signaling a growing consensus within the industry to address environmental concerns.

COP28 President, Dr. Sultan Al-Jaber, expressed optimism about the charter's launch, stating that while it represents a commendable first step, there is a collective responsibility for the entire industry to go above and beyond. He noted that many national oil companies have, for the first time, adopted net-zero 2050 targets, but emphasized the imperative to set even more ambitious goals for decarbonisation.

Dr. Al-Jaber highlighted the necessity for the entire industry to contribute to keeping global temperature increases within the 1.5-degree Celsius target. He urged stakeholders to embrace stronger ambitions for decarbonisation, emphasizing that tackling climate change requires coordinated efforts from both energy producers and consumers, societal shifts, and international collaboration.

The charter also emphasizes the importance of aligning with broader industry best practices to accelerate the decarbonisation of operations and achieve substantial emissions reductions by 2030. Dr. Al-Jaber stressed that the charter recognizes climate change as a collective challenge that demands concerted efforts across the energy sector, society, and international collaborations to advance the transition to cleaner energy and reduce greenhouse gas emissions from oil and gas.

Crucially, Dr. Al-Jaber emphasized the need for a clear plan to direct efforts towards the right objectives. He articulated that bringing everyone into accountability and responsibility for climate action is pivotal for accelerating progress across the climate agenda. The overarching goal is to instill a positive and proactive vision that motivates all stakeholders to actively participate in reducing emissions and driving meaningful climate action.

The Oil and Gas Decarbonisation Charter is a central component of the Global Decarbonisation Accelerator (GDA), a pivotal initiative launched during the COP28 World Climate Action Summit. The GDA serves as a platform for driving collaborative efforts within the industry to accelerate the transition towards a low-carbon and sustainable future. As the charter takes effect, it signifies a crucial step forward in aligning the oil and gas sector with global climate goals and fostering a collective commitment to transformative action.