Background

The Paris Agreement has set a clear direction for the economy in decades to come. The agreement aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, including by holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change.

The combustion of fossil fuels represents the single largest source of carbon dioxide emissions. The Oil & Gas industry is one of the largest contributors of methane emissions. On the other hand, the Oil & Gas industry holds considerable scientific, technical, economic and financial assets that can provide significant contributions to the low-carbon transition.

As such, the Oil & Gas sector is highly exposed to low-carbon transition risks (and opportunities) and needs to undergo significant transformation for society to meet the goals adopted by over 195 countries through the Paris Agreement.

The purpose of this project is to develop science-based target-setting methodologies that allow stakeholders, including companies, investors, governments and civil society, to understand the alignment of Oil & Gas and Integrated Energy company emissions reduction targets with the level of transformation required to meet the goals of the Paris Agreement. The project, first and foremost, will address embedded emissions in fuel supplied, but will also seek to address scope 1 emissions (energy and methane process emissions). At a later stage the project should consider scope 2 emissions and links to refinery and petrochemical industry, consistent with the SBTi’s chemical sector development.

Development Process

A technical working group composed of approximately 20 members representing civil society organizations, Oil & Gas and Integrated Energy companies, investors, policymakers, academics, and other experts convene regularly. Up to twelve meetings are to be held before June 2020. The methodology development is led and supported by CDP. CDP drafts methodology documents and makes proposals to the technical working group, which then provides input and recommendations.

A public consultation will then take place from August until early October 2020 before a final methodology is delivered to the SBTi for final approval.

This development occurs simultaneously with the ACT – Assessing Low-Carbon Transition Oil & Gas sector methodology development, convened by ADEME and CDP, and with its own technical working group. Several meetings have been held with both the SBT and ACT technical working groups.

SBTi Oil&Gas and Integrated Energy Company Methodology development is supported by a technical working group including:

World Wildlife Fund (WWF), Shell, Galp, Total, bp, Eni, Repsol, Agence de la transition écologique (ADEME), California Resources Corporation (CRC), World Resource Institute (WRI), i Care & consult, UN Global Compact, Imperial College London, University of Queensland Business School, Carbon Tracker, Climate Accountability, Aviva Investors, HSBC, World Benchmarking Alliance, OG Authority

Public Consultation

The SBTi Oil & Gas and Integrated Energy Methodology has launched for public consultation. It will be open for comments for two months starting August 10th until October 4th 2020. We invite you to provide your feedback, opinions, and comments on setting science-based targets for Oil&Gas and Integrated Energy companies.

Instructions on commenting and the consultation process, in both document and video form, as well as relevant documents and links are posted here:

Resources

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Timeline

The project was launched by CDP in November 2019 and was kicked off with the first meeting of its technical working group. A public consultation will take place from August 10th to October 4th 2020. The methodology will be delivered to the SBTi in October 2020. The methodology will be delivered to the SBTi before the end of the year.

Contact

Pedro Faria, Technical Director, CDP, [email protected]

Paulina Tarrant, Project Management Consultant, [email protected]