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. Also the Oil and Gas industry is one of the largest contributors of methane emissions. On the other hand, the Oil and Gas industry holds considerable scientific, technical, economic and financial assets that can provide significant contributions to the low-carbon transition.

As such, the Oil and 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 ten meetings were held up until August 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 is now taking place from August until the end of 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 and 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.

The SBTi Oil, Gas and Integrated Energy Companies Methodology development is supported by a technical working group including:

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

Public Consultation

The SBTi Oil, Gas and Integrated Energy Companies Methodology has launched for public consultation. It will be open for comments for two months starting August 10th until October 30th 2020. We invite you to provide your feedback, opinions, and comments on setting science-based targets for Oil, Gas and Integrated Energy companies.

The public consultation has been extended until October 30th 11:59PM PT.

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

Resources

To stay informed, join our Mailing List here: Stay Informed

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 is currently taking place. It launched on August 10th and was to end originally on October 4th 2020, but has been extended until October 30th. It is planned for the methodology to be delivered to the SBTi by the end of the year.

Contact

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

Paulina Tarrant, Project Management Consultant, [email protected]