Energy giants face 35 per cent output cut to hit Paris climate goals: watchdog

Pollution

The 2015 Paris deal enjoins nations to limit temperature rises to “well below” two degrees Celsius (3.6 Fahrenheit) and to a safer cap of 1.5 C if at all possible. (AFP)

The biggest listed oil and gas giants must slash production by more than a third by 2040 to keep emissions within targets laid out in the landmark Paris climate deal, an industry watchdog said Friday.

Carbon Tracker, a Britain-based think tank, said that current rates of emissions from the energy majors would see the world’s carbon budgets surpassed within decades due to an inexorable rise in oil and gas output.

The 2015 Paris deal enjoins nations to limit temperature rises to “well below” two degrees Celsius (3.6 Farenheit) and to a safer cap of 1.5C if at all possible.

In order to hit these targets, the world must undergo a drastic drawdown in emissions of planet warming greenhouse gases.

Because carbon dioxide contributes to global warming at a known and predictable rate, scientists can calculate Earth’s “carbon budget” for a range of temperature rise scenarios.

Carbon Tracker estimated that a current emissions rates — and emissions are still rising annually — the carbon budget for a 1.5C temperature rise will be exceeded in 13 years.

For 1.75C — already a level deemed far from safe by the world’s leading scientists — that budget gets exceeded in 24 years, according to the watchdog.

It used the International Energy Association’s BD2S climate scenario to predict a rise of 1.6C, then compared that to data assessing the emissions trajectories of major oil and gas projects. The analysis showed that the listed majors on average needed to cut production by 35 percent within two decades to stick to the 1.6-C path.

“There’s a finite limit for any carbon that can be released for any given level of global warming and that implies that if we are going to have a good result under Paris or any other climate target, fossil fuel production is going to need to shrink,” Andrew Grant, senior oil and gas analyst at Carbon Tracker, told AFP.

“While companies may all say they support Paris — whatever that means — they still plan to keep producing more oil, gas and coal.”MORE

 

 

 

Oil and gas companies undermining climate goals, says report

Biggest fossil fuel extractors warned they risk wasting $2.2tn ‘in a low-carbon world’


Oil and gas companies continue to invest heavily in projects such as deepwater fields, despite the climate crisis. Photograph: Dazman/Getty Images/iStockphoto

Major oil and gas companies have invested $50bn (£40.6bn) in fossil fuel projects that undermine global efforts to avert a runaway climate crisis, according to a report.

Since the start of last year, fossil fuel companies have spent billions on high-cost plans to extract oil and gas from tar sands, deepwater fields and the Arctic despite the risks to the climate and shareholder returns.

Carbon Tracker, a financial thinktank, found that ExxonMobil, Chevron, Shell and BP each spent at least 30% of their investment in 2018 on projects that are inconsistent with climate targets, and would be “deep out of the money in a low-carbon world”.

Andrew Grant, the author of the report, said: “Every oil major is betting heavily against a 1.5C world and investing in projects that are contrary to the Paris goals.”

The study is the first to analyse individual projects to test whether they are compliant with a 1.5C world, and whether they would be financially sustainable in a low-carbon world.

It found that none of the largest listed oil and gas companies are making investment decisions that are in line with global climate goals, and risk wasting $2.2tn (£1.8tn) by 2030 if governments take a tougher stance on carbon emissions. MORE

 

Oil and gas industry rewards fossil fuel growth at its peril, report warns


An aerial view of operations in Canada’s oil sands. Photo by Andrew S. Wright

Canadian oil and gas companies are rewarding their executives for expanding fossil fuel activity despite global economic and environmental realities that make this unsustainable, says a report from Carbon Tracker.

But they are far from alone. Carbon Tracker’s team of financial specialists found that 92 per cent of 40 incentive schemes they analyzed at major oil companies worldwide contained rewards to executives for increasing fossil fuel production, growing reserves or resource volumes, or both.

Major global oil and gas companies are still rewarding executives for expanding fossil fuel production despite its long-time unsustainability, a new report from @CarbonBubble warns.

The incentive schemes were in place in 2017. Carbon Tracker is a London-based think tank that maps the risks and opportunities related to a global shift to less carbon-intensive energy supply. MORE