Some of the world’s biggest oil companies have joined forces to launch a new initiative to reduce greenhouse gas emissions.
Thirteen companies have committed a total of $1 billion to fund the Oil and Gas Climate Initiative (OGCI). As an organisation, it will support the Paris Climate Accord’s objectives. It will engage in activities like campaigning for new economic incentives and tax regimes that will encourage emission reductions, as well as make large investments in carbon capture, use and storage (CCUS) technology.
The OGCI said in a statement:
“The program seeks to create a commercially viable, safe and environmentally responsible CCUS industry and double the amount of carbon dioxide that is currently stored globally before 2030.”
The CCUS part of the initiative will aim to assist in the decarbonisation of industrial hubs, starting in the United Kingdom, China, Norway, the United States, and the Netherlands.
The movement into reducing carbon emissions builds on the oil companies’ previous commitment to reduce their methane emissions. The aim is to ensure that any global warming does not exceed 2 degrees Celsius.
The following companies participate in the OCGI: CNPC, BP, Equinor, Chevron, ExxonMobil, Pemex, Eni, Saudi Aramco, Repsol, Occidental, Total, Petrobras, and Shell. Together they account for almost a third of the world’s oil production, and many of them also produce lubricants like hydraulic oils, slideway oils, and metalworking fluids. All have committed to supporting policies to increase carbon costs or give it value, such as emission trading and carbon taxes.