Global oil majors commit to climate change

The companies, including RIL, have committed to collective actions and investments, which would contribute to reducing carbon intensity of the global energy mix

Chief executive officers of 10 of the world's largest oil and gas companies - which together account for almost a fifth of all oil and gas production - declared on Friday their collective support for an effective climate change agreement ahead of the upcoming international climate change convention, Conference of Parties (21) at Paris in December.

The ten companies which includes India's Reliance Industries besides BG Group, BP, Eni, Pemex, Repsol, Saudi Aramco, Shell, Statoil and Total, confirmed their commitment towards limiting global temperature rise to 2 degree centigrades although recognising that existing international emission trends pertaining to greenhouse gas (GHG) did not allow this.

Cumulatively supplying nearly 10 per cent of the world's energy, the companies make up the Oil and Gas Climate Initiative (OGCI). Launched during the latest UN Climate Summit in September 2014, it describes itself as a voluntary initiative by the oil and gas industry aiming to catalyze practical solutions to climate change.

The companies have committed to collective actions and investments, which would contribute to reducing carbon intensity of the global energy mix. However, no fixed targets have been announced.

OGCI has, however, maintained that member companies have taken significant actions to reduce their GHG footprint, with combined operational emissions reducing by around 20 per cent over the past 10 years.

A collaborative report has also been released which highlight practical actions taken by member companies to improve GHG emissions management and work towards improving climate change impacts in the longer term. These actions include significant investments in natural gas, carbon capture and storage, and renewable energy, as well as low-GHG research and development.

The report stresses energy optimization and operational efficiency are among the core focus of the group which would include improving the end-use efficiency of fuels as well as working with manufacturers and consumers to improve the efficiency of road vehicles.

Another objective highlighted by it, was increasing the share of gas in the global energy mix and ensuring it results in significantly lower lifecycle emissions than other fossil fuels for power generation. Although evidence suggests a positive implication of such a switch in the short term, but the two degree policy on climate change eventually mandates phasing out all fossil fuels. The report is silent on this.

Long-term solutions like investing in research and development, better innovation to reduce GHG emissions and partnerships in carbon capture and storage are also mentioned.

Critics have pointed out the report presents little more than a 'lowest common denominator' stand which oil majors have been forced to compromise on after global consensus builds up against growing extraction and use of fossil fuels.