Sultan Al-Jaber, the President-Designate of this year’s UN Environment Summit, has delivered a significant message to the oil and gas industry. He emphasized the industry’s need to prepare for an inevitable “phase-down” of fossil fuels while urging them not to be perceived as obstructing decarbonization efforts. In an interview with the Financial Times, Jaber, who also heads the Abu Dhabi National Oil Company (Adnoc), one of the world’s largest oil and gas conglomerates, revealed that he is engaged in discussions with fossil fuel producers to launch an initiative focused on reducing greenhouse gas emissions. This initiative is expected to be launched at the COP28 climate summit in Dubai later this year.
“I don’t believe that this industry should be found in any capacity, shape, or form that they are conflicting with the phase-down [of fossil fuels]. This phase-down is happening,” he stated. “What they need to do is start investing in the decarbonization of the current energy system.” Sultan Al-Jaber, COP28 President-Designate and UAE’s Special Envoy for Climate Change, shared that more than 20 fossil fuel-focused companies, representing up to a quarter of global oil and gas production, are actively in talks to join the initiative. He is actively pressuring other industry players to participate in the proposed Global Decarbonization Partnership.
Companies supporting this alliance, as reported by the Financial Times, will be called upon to commit to achieving net-zero emissions by 2050. Additionally, they will be expected to aim for “minimal” methane emissions, a potent greenhouse gas, throughout their entire value chain by 2030.
In July, Adnoc announced its intention to achieve net-zero emissions from its operations by 2045, earlier than the 2050 target, and to reduce methane emissions to zero by 2030. However, the company is currently allocating only 10% of its capital expenditure over the next four years to decarbonization. Adnoc also has ambitious plans to increase oil production capacity from over 4 million barrels per day to 5 million by 2027, subject to OPEC quotas.
Jaber’s dual role as the President of COP28 while overseeing an expanding oil company has raised concerns among politicians in the US and Europe. However, figures like US Climate Envoy John Kerry believe that Jaber can play a significant role in driving change in the oil industry. Jaber has expressed his ambition for COP28, scheduled for November and December, to be a catalyst for substantial changes in the global energy system. Apart from the oil and gas initiative, Jaber is also advocating for nations to commit to doubling renewable energy capacity by 2030.
From the Abu Dhabi hydrocarbon conference, Jaber also called for the oil and gas industry to scale up and commercialize carbon capture, utilization, and storage (CCUS) technology, which has yet to be proven at scale. Jaber emphasized that CCUS must be part of the solution to achieve global net-zero emissions by 2050. “We need action,” he urged, emphasizing that the industry should take steps to agree to the phase-down of fossil fuels and invest in scaling and marketing CCUS technology.
Jaber has previously set a “mid-century” timeline for the phase-down of unabated fossil fuels, referring to the use of fossil fuels without capturing their emissions. The European Union and other countries are also pushing for an agreement on phasing out fossil fuels at COP28.
Jaber’s methane reduction target, if widely supported, would be a significant achievement during his stewardship of the environmental summit. Methane, a major component of natural gas, is a potent contributor to global warming, responsible for approximately 30% of the global temperature increase since the industrial revolution.
Jaber expressed optimism that a loss and damage fund, agreed upon last year to aid countries affected by global temperature rises, will be operational by COP28.
