Gas and oil industry faces ‘moment of truth’ ahead of COP28 – report
The International Energy Agency released a report on the future of fossil fuels and said oil and gas producers have ‘pivotal choices’ to make.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.An international report says that oil and gas producers are facing a “moment of truth” to embrace a shift to clean energy or continue to deepen the climate crisis.
The global energy watchdog, the International Energy Agency (IEA), released a report on the future of fossil fuels and said oil and gas producers need to make “pivotal choices about their role in the global energy system”.
The special report was released before the United Nations climate summit, or COP28, which begins in Dubai next week, and sets out what the industry must do to align itself with the Paris Agreement.
The report says the industry’s emissions need to drop by 60% by 2030 to keep global warming to an increase of just 1.5C “within reach” and would have to reduce emissions by 75% to reach the 2050 net-zero goal.
The fossil fuel sector must make tough decisions now, and their choices will have consequences for decades to come
The IEA executive director Dr Fatih Birol said oil and gas producers must make “profound decisions” about their place in the energy sector.
“The industry needs to commit to genuinely helping the world meet its energy needs and climate goals – which means letting go of the illusion that implausibly large amounts of carbon capture are the solution,” Dr Birol said.
“This special report shows a fair and feasible way forward in which oil and gas companies take a real stake in the clean energy economy while helping the world avoid the most severe impacts of climate change.”
The report says the 800 billion dollar annual investment in the oil and gas sector is double what is needed to reach climate targets by 2030.
If acted upon, there are opportunities for the oil and gas sector to invest in technology for clean energy transitions. Still, producers would have to put 50% of their capital towards clean energy projects by 2030.
“The fossil fuel sector must make tough decisions now, and their choices will have consequences for decades to come,” Dr Birol added.
“Clean energy progress will continue with or without oil and gas producers. However, the journey to net zero emissions will be more costly and harder to navigate if the sector is not on board.”.