SBTi Drafts Decarbonization Standard for Oil and Gas Industry Amid Urgent Climate Goals

The Science Based Targets initiative (SBTi) has entered the drafting phase of its Oil and Gas Standard, a pivotal step in guiding the oil and gas sector toward substantial emission reductions. This move follows extensive research and input from stakeholders, underscoring the critical need for the industry, which accounts for 85% of global CO2 emissions, to play a central role in addressing climate change.

The oil and gas industry, a significant contributor to global methane emissions, presents a crucial opportunity for near-term climate action. Recognizing this, the SBTi is working on rigorous methodologies that will enable companies in the sector to set and achieve science-based targets aligned with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C.

The initiative’s Oil and Gas Standard project is designed to provide a structured pathway for companies to transition toward net-zero emissions. This effort focuses on three main areas: supply, demand, and finance. Oil and gas companies are encouraged to reduce emissions from fossil fuel production, end-users must decrease fossil fuel consumption, and financial institutions are urged to disclose, halt, and transition their fossil fuel-related activities.

A key aspect of the project is the involvement of an Expert Advisory Group (EAG), comprising technical experts from various organizations and companies. This group ensures that the standards being developed are scientifically robust and practical for implementation.

Since resuming in 2022, the SBTi’s Oil and Gas Standard project has made significant strides. An external expert review released in January 2023 highlighted key technical and methodological issues, providing valuable guidance for the ongoing development of the standards.

The SBTi emphasizes the unique position of the oil and gas sector to lead global decarbonization efforts. As the drafting of these standards progresses, the initiative remains focused on ensuring that the industry contributes meaningfully to a sustainable future.