In a historic move, the COP28 Presidency announced the launch of the Oil and Gas Decarbonization Charter (OGDC), a pioneering global initiative aimed at accelerating climate action within the oil and gas sectors. The OGDC represents a significant step toward achieving substantial impact and fostering collaboration across the industry.
Fifty companies, collectively responsible for over 40 percent of global oil production, have already pledged their commitment to the OGDC, marking the largest-ever number of National Oil Companies (NOCs) to join a decarbonization initiative. This major milestone underscores the industry’s recognition of the urgent need for transformative action.
Key Commitments and Actions
The OGDC signatories have committed to achieving net-zero operations by 2050 at the latest, ending routine flaring by 2030, and minimizing upstream methane emissions. They have also pledged to invest in the energy system of the future, incorporating renewables, low-carbon fuels, and negative emissions technologies.
Transparency is a cornerstone of the OGDC, with signatories committed to enhancing measurement, monitoring, reporting, and independent verification of greenhouse gas emissions. The charter emphasizes the importance of aligning with industry best practices to accelerate decarbonization and aims to implement these practices by 2030.
In addition to emission reduction efforts, the OGDC recognizes the need to address energy poverty and provide secure and affordable energy to support the development of all economies. These multifaceted commitments highlight a holistic approach to sustainability within the oil and gas industry.
Signatories to the Oil and Gas Decarbonization Charter
The OGDC has garnered support from a diverse range of National Oil Companies (NOCs) and International Oil Companies (IOCs), showcasing a global commitment to climate action. Notable NOC signatories include ADNOC, Saudi Aramco, and Petronas, while prominent IOC signatories include Shell, BP, and TotalEnergies.
Integration with the Global Decarbonization Accelerator (GDA)
The OGDC is an integral part of the Global Decarbonization Accelerator (GDA), a comprehensive initiative launched at the World Climate Action Summit. The GDA focuses on three pillars: rapidly scaling the energy system of tomorrow, decarbonizing the energy system of today, and targeting methane and other non-CO2 greenhouse gases.
Informed by the insights of key stakeholders, including international organizations, governments, NGOs, and CEOs from various industrial sectors, the GDA represents a concerted effort to address both the demand and supply of energy simultaneously.
COP28 President Dr. Sultan Al Jaber expressed optimism about the OGDC’s potential, stating, “The launch of the OGDC is a great first step, and while 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. We need the entire industry to keep 1.5°C within reach and set even stronger ambitions for decarbonization.”
With unprecedented collaboration and commitments from industry leaders, the OGDC paves the way for a more sustainable future, aligning with broader initiatives like the Global Decarbonization Accelerator.