COP28: 5 Key Updates For Sustainability Leaders In Energy

As COP28 or the United Nations Climate Change Conference comes to a close, we at the Industrial Decarbonization Network, recap 5 key (and exciting!) updates that can potentially change the course of the energy sector.

The Climate Change Conference held this year in Dubai, United Arab Emirates (UAE) from November 30 to December 12, shone a bright light on methane and the energy sector, resulting in a series of bold decisions to drive decarbonization in the oil and gas sector. Results from the first-ever Global Stocktake concluded that despite the efforts towards a net-zero target, the world is still not on track to meet the Paris Agreement goal of limiting warming to 1.5C.

Therefore, new commitments from both governments, associations and industry leaders aim to bring about considerable progress as the world moves towards a sustainable future.

Here's how: 

1. The O&G Decarbonization Charter

COP President Dr. Sultan Al Jaber announced that approximately 50 major oil and gas operators will be signing the O&G Decarbonization Charter, accounting for more than 40% of global oil and gas production. Under this charter, operators will agree to limit emissions to just 0.2% of total production and eliminate all wasteful, routine flaring by 2030.

Saudi Aramco, SOCAR, the State Oil Company of the Republic of Azerbaijan, and the National Oil Company of Libya are amongst 29 major national oil and gas companies to have already committed to the charter.  

LISTEN: Methane Talks: Navigating the Regulatory Landscape with IOGP Europe
 
2. The US Federal Government Announced New Regulations

On December 2, The US Environmental Protection Agency (EPA) unveiled their strongest-ever clean air standards aimed to reduce methane emissions by 80%, in line with the O&G Decarbonization Charter. The EPA’s new policies are set to ban routine flaring of natural gas produced by newly drilled oil wells and requires oil companies to monitor for leaks from well sites and compressor stations and establish a program to use third party remote sensing to detect large methane releases from super-emitting sources.

This will prevent an estimated 58 million tons of methane from reaching the atmosphere between 2024 and 2038. 
 
3. The World Bank Steps Up 

To ensure that the signatories to the O&G Decarbonization Charter achieve their commitments, the World Bank declared its intent to launch at least 15 country methane programs in the next 18 months, aiming to slash up to 10 million tons of methane. The new national programs built on successful pilots across other industries like livestock and waste, will support early interventions where emissions are set to rise exponentially, inform policy making and country engagements through analytics and financing. Between 2024 and 2030, the World Bank expects to significantly boost its financing through public and private sector channels for methane reduction, changing the course of the whole energy value chain.

READ: Developing Industry-Recommended Practices for Effective Emissions Management

4. Parties to the Paris Agreement to Submit National Climate Targets

During a summit convened by the US, China and COP28 host, the UAE, called on parties to the Paris Agreement to submit national climate targets (nationally determined contributions, or NDCs), for 2035 that are economy-wide and cover all greenhouse gases, not just CO2.

This was followed by over $1 billion in funding by governments, philanthropies and the private sector for methane reduction across sectors in developing countries. 
 
5. Monitoring and Reporting Initiatives

In order to ensure that commitments are met and stakeholders are kept accountable, The Environmental Defence Fund (EDF) is joining forces with top allies on an independent effort to ensure companies deliver on the promises made. Together, they are creating a transparent, data-driven framework to hold participating oil and gas companies publicly accountable for their methane performance.

Furthermore, The Global Methane Hub and its partners announced other actions which includes the Data for Methane Action Campaign, to improve satellite data for addressing methane leaks, supported by around $100 million; and a partnership with climate philanthropies to help countries address non-CO2 GHGs. 

READ: Driving Decarbonization in the Energy Sector: A JPMorgan Chase Perspective
 
Interested in learning more? 
The Methane Mitigation Summit Europe, taking place in Amsterdam, 12-14 February, 2024 will be your gateway into action-led insights on the outcomes of COP28 and the regulatory landscape. Join us to hear from leading oil and gas companies along with interactive discussions with industry associations, academics and much more. Download the agenda for more. 

Not able to attend in February?  

Join us at the Methane Mitigation Technology & Innovation Summit in Houston from June 10-13, uniting front-line innovators from around the globe, leading the way in methane detection, measurement and mitigation. Learn all about the cutting-edge technologies being developed in the sector, explored through a broad range of operator case studies from the Americas, Europe, Asia and beyond. Visit the event website to learn more.