SBTi updating plans for O&G, other sectors to cut emissions

TO tackle emissions in high-impact industries and align with its Corporate Net-Zero Standard, the Science Based Targets initiative (SBTi) is updating its terms of reference for three sector projects: oil and gas, chemicals and power.

- By ABDULAZIZ KHATTAK

The SBTi is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis.

These updates are essential to inform robust, practical and clear criteria, with input from external stakeholders shaping their development.

By prioritising sectors with the greatest potential to drive decarbonisation, the SBTi aims to equip businesses in high-emitting industries with science-aligned net-zero pathways.

OIL & GAS

Fossil fuel combustion and industrial processes account for 85 per cent of global CO2 emissions and 64 per cent of total greenhouse gas emissions.

A major contributor to these emissions is the oil and gas sector, which consists of companies active in the exploration, extraction, processing, transport, refinement, and marketing of crude oil, natural gas, and their subsequent products.

Oil and gas related operations contribute 15 per cent of global energy related emissions, excluding the indirect emissions from the use of sold products. A major portion of these emissions are leaks and releases of methane gas.

The oil and gas industry desperately needs a blueprint to decarbonise if humanity is to stop the most catastrophic impacts of climate change.

For this reason, the SBTi will develop a sector specific-standard for the oil and gas sector, that will establish the minimum criteria required for companies to set science-based targets that are aligned with a 1.5 deg C level of ambition.

SBTi’s Oil and Gas Standard will demonstrate how companies in this industry can decarbonise their business models, retain and attract financing and lead the energy transition.

The updated Terms of Reference for SBTi’s Oil and Gas Standard outlines key milestones in this development, which will be the first of its kind.