The Oil & Fuel Decarbonization Constitution (OGDC) has printed its Baseline Report, setting a basis to assist prioritize and observe progress on emissions reductions made by the 54 oil and gasoline firms — representing nearly 45% of the worldwide oil manufacturing, which have signed as much as the Constitution’s ambitions.
These ambitions embrace to work towards net-zero operations by 2050, near-zero upstream methane emissions and nil routine flaring by 2030 along with measuring and publicly reporting progress in direction of assembly OGDC’s objectives.
The publication of the Baseline Report is a key milestone for OGDC that units out the work achieved within the first yr because the initiative was launched at COP28.
Up to now 12 months, OGDC has established a governance framework and launched a survey to find out signatories’ emissions discount ambitions and implementation plans to set a baseline to trace future progress. OGDC has additionally applied a Collaborate & Share program to disseminate options, promote peer-to-peer collaboration and encourage the adoption of finest practices to scale back emissions. In an indication of a optimistic momentum, the initiative has additionally attracted three new members, with Oil India Restricted, PetroChina and Vår Energi becoming a member of.
“We’re happy with the 54 firms which have already signed as much as the Constitution and are inspired by the extent of their engagement on this first main piece of labor that helps to determine a base on which to construct future success,” OGDC’s three CEO Champions and founding members — Abu Dhabi Nationwide Oil Firm (ADNOC) CEO Sultan Al Jaber, Aramco CEO Amin Nasser and TotalEnergies Chairman and CEO Patrick Pouyanné, mentioned in a joint assertion.
“Every firm is at a unique section of the decarbonization journey. For some, the Constitution displays current commitments and aligns with pledges already made by way of different initiatives. For others, it marks their first steps towards local weather motion.
“The various nature of our signatories is a chance in addition to a problem. Every firm brings totally different experiences, capabilities, stakeholders and nationwide circumstances. Signatories may have the chance to study from one of the best practices and insights of friends from a variety of backgrounds and from throughout the globe,” the CEOs mentioned.
OGDC’s Constitution Baselining Survey discovered that almost all of signatories are already per the Constitution’s ambitions for web zero operations by 2050, and objectives to scale back methane emissions to close zero and get rid of flaring by 2030. Gaps recognized within the survey will assist prioritize assist and data switch from firms with related expertise.
The survey additionally discovered {that a} majority of the signatories already report on their greenhouse gasoline emissions, although there’s a want for frequent requirements and methodologies to determine a sturdy reporting framework for the group.
In accordance with the survey, many of the signatories are already investing within the vitality methods of the long run, together with renewable vitality, vitality storage, low-carbon fuels, hydrogen, methane abatement, carbon seize utilization and storage (CCUS) and carbon removals applied sciences, and plan to extend investments.
Bjorn Otto Sverdrup, the top of the OGDC Secretariat mentioned: “A survey of oil and gasoline trade local weather efficiency has by no means been tried on this scale. Contributors ranged from firms that pioneered decarbonization many years in the past to these nonetheless within the early phases – all with totally different capabilities and reporting strategies. The teachings realized will likely be used to enhance reporting visibility and information high quality and to create extra focused applications.”
This baselining survey units the muse for the collective work forward: over the subsequent yr, OGDC will deal with offering the sources and steerage the signatories want to scale back their GHG emissions, methane emissions and flaring. OGDC may also assist signatories to form their net-zero roadmaps and develop emissions reporting to make sure progress might be tracked and to reveal how collective motion can ship optimistic local weather affect on a world scale.