Landmark Oil & Gas Decarbonisation Charter launched at COP28
The COP28 Presidency and the Kingdom of Saudi Arabia announced at COP28 that 50 oil and gas companies have joined the Oil and Gas Decarbonisation Charter (OGDC), a high-impact global industry charter to implement and accelerate climate actions in support of the Paris Agreement ambitions.
Largest support base from NOCs
Fifty companies, representing more than 40 percent of global oil production, have so far signed the OGDC, with National Oil Companies (NOCs) representing more than 60 percent of signatories – including companies such as ADNOC, Saudi Aramco, OMV, Equinor, Petronas, INPEX, and ONGC. This is the largest-ever number of NOCs to commit to a decarbonisation initiative, COP28 said in a statement. Prominent International Oil Companies that are signatories to the OGDC include Eni, ExxonMobil, Oxy, Shell and TotalEnergies.
“The launch of the OGDC is a great first step – and whilst many national oil companies have adopted net zero 2050 targets for the first time, I know that they and others, can and need to do more,” Dr. Sultan Al Jaber, COP28 President, said following the launch of the charter. “We need the entire industry to keep 1.5C within reach and set even stronger ambitions for decarbonisation,” he said.
East Mediterranean Gas Forum welcomes OGDC and hails inclusive COP
His Excellency Osama Mobarez, Secretary General of the East Mediterranean Gas Forum, told Energy Connects that the charter was a critical milestone in accelerating the industry's decarbonsation roadmap during what he called one of the most inclusive COP summits.
Watch the viewpoint of H.E. Mobarez here:
OGCI welcomes initiative
Welcoming the launch of OGDC, the Oil and Gas Climate Initiative (OGCI) – an initiative led by the CEOs of 12 of the world’s leading oil and gas companies – called it an important milestone that’ll help align the broader oil and gas industry towards a net-zero future.
“The OGDC is an important milestone that enables more oil and gas companies, state-owned and private, to work together to achieve the ambitions of the Paris Agreement. OGCI is ready to share the knowledge, experience and best practise that we’ve gained by working on emissions reductions over the past decade,” Bjørn Otto Sverdrup, OGCI Executive Committee Chair, said in a statement.
Setting best practice benchmarks
Among several best practices, the companies signing up for the charter have pledged to invest in the energy system of the future – including renewables, low-carbon fuels and negative emissions technologies. The signatories have also agreed to increasing transparency, including enhancing measurement, monitoring, reporting and independent verification of greenhouse gas emissions and their performance and progress in reducing emissions.
Beyond decarbonisation, the charter signatories will also work to increase industry actions, including engaging with customers, investing in the energy system of the future, and increasing transparency in measurement, reporting and independent verification.
The charter calls for implementing current best practices by 2030 to collectively reduce emission intensity, and reducing energy poverty and providing secure and affordable energy to support the development of all economies.
Promoting industry transparency
The OGDC will operate on the recognition that climate change is “a collective challenge that requires strong and focused action from producers and consumers of energy,” as well as global collaboration to advance the energy transition
“I am committed to both inclusivity and transparency. If we want to accelerate progress across the climate agenda, we must bring everyone in to be accountable and responsible for climate action,” Dr. Al Jaber said of the charter. “We must all focus on reducing emissions and apply a positive can-do vision to drive climate action and get everyone to take action. We need a clear action plan, and I am determined to deliver one,” he added.
Experts to help with methane emissions and flaring goals
OGCI and a group of leading technical experts said they have also teamed up to help oil and gas companies meet their OGDC methane emissions and flaring goals, developing a framework that helps OGDC signatories achieve near-zero methane emissions and eliminate routine flaring by 2030. The group includes the International Association of Oil and Gas Producers (IOGP), Methane Guiding Principles (MGP), and Environmental Defense Fund (EDF), apart from OGCI.
"We intend to consult with OGDC signatories, other organisations, associations, and technical service providers as appropriate (e.g., Ipieca, United Nations Environment Programme, World Bank’s Global Flaring and Methane Reduction trust fund), and our efforts will align to OGDC governance when established," the group said in a statement.
The OGDC was launched as a key initiative under the Global Decarbonisation Accelerator (GDA) at the World Climate Action Summit at COP28. The charter urges the oil and gas sector to achieve net-zero emissions for their own operations by 2050, apart from pledging commitments to achieve near-zero upstream methane emissions and eliminate routine flaring by 2030.
List of signatories to Oil and Gas Decarbonisation Charter
National Oil Companies:
- Bapco Energies
- INPEX Corporation
- Mari Petroleum
- National Oil Company of Libya
- Pakistan Petroleum Limited (PPL)
- Petroleum Development Oman
- Saudi Aramco
- ZhenHua Oil
International Oil Companies:
- Azule Energy
- COSMO Energy
- Crescent Petroleum
- Dolphin Energy Limited
- Energean Oil & Gas
- EQT Corporation
- Mitsui & Co
- Oando plc
- Occidental Petroleum
- Puma Energy (Trafigura)
- Woodside Energy Group
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