In a groundbreaking move toward combating climate change, the COP28 Presidency and the Kingdom of Saudi Arabia announced the launch of the Oil and Gas Decarbonisation Charter (OGDC). This unprecedented global initiative is dedicated to accelerating climate action within the oil and gas sectors, aiming to achieve substantial impact and set new standards for environmental responsibility.
As of the charter’s launch, an impressive 50 companies, representing more than 40 percent of the world’s oil production, have committed to the OGDC. Notably, National Oil Companies (NOCs) make up over 60 percent of these signatories, marking the largest-ever participation of NOCs in a decarbonization initiative.
COP28 President, Dr Sultan Al Jaber, expressed optimism about the OGDC’s potential impact, stating, “The launch of the OGDC is a great first step,” acknowledging the significance of national oil companies adopting net-zero 2050 targets. However, he emphasized the need for the entire industry to intensify efforts to limit global warming to 1.5 degrees Celsius and set even more ambitious decarbonisation goals.
Signatories of the charter commit to achieving net-zero operations by 2050 at the latest, putting an end to routine flaring by 2030, and minimizing upstream methane emissions. Additionally, they pledge to invest in the energy system of the future, embracing renewables, low-carbon fuels, and negative emissions technologies.
One of the key features of the OGDC is a commitment to transparency. Signatories will enhance measurement, monitoring, reporting, and independent verification of greenhouse gas emissions, ensuring accountability and progress in reducing emissions. The charter also emphasizes alignment with industry best practices, with a goal to collectively reduce emission intensity by implementing current best practices by 2030.
Dr Al Jaber highlighted the importance of inclusivity and transparency, stating, “If we want to accelerate progress across the climate agenda, we must bring everyone in to be accountable and responsible for climate action.”
Beyond decarbonization, the OGDC recognizes the oil and gas industry’s responsibility to engage with customers, invest in the energy system of the future, and increase transparency in measurement, reporting, and independent verification.
The OGDC is a pivotal initiative under the Global Decarbonization Accelerator (GDA), launched at the World Climate Action Summit. The GDA focuses on rapidly scaling the energy system of tomorrow, decarbonizing the current energy system, and targeting non-CO2 greenhouse gases such as methane.
