COP28 president pushes renewable energy but Shell prioritises oil and gas investment: Don’t we need an aligned approach?

Last month, the ESG news landscape boasted two conflicting stories – with the COP28 president stating that the phase down of fossil fuels is essential, at the same time Shell announced a renewed focus on oil and gas investment.

With the climate emergency ever worsening, it begs the question of why decision-making bodies and international corporations aren’t aligned in their approach to tackling climate change.

According to the United Nations, fossil fuels are the largest contributor to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions.

So, just what are the arguments of both the COP28 president and Shell? And how are we ever going to tackle climate change with such conflicting approaches?

Phasing out fossil fuels

Back in July, COP28 president Sultan Al Jaber – who is also the chief of UAE’s national oil company Adnoc – publicly stated that the phase down of fossil fuels is “inevitable” and that oil and gas companies must be involved in the process.

He added that the phasing out would not be a quick process and that the world must increase and improve its renewable energy capacity before it can take over from the current energy system and meet the growing capacity of the future.

In his COP28 plan, which he outlined at a meeting in Brussels, Al Jaber suggested commitments to triple renewable energy capacity to 11,000GW globally and double hydrogen production to 180m tonnes a year by 2030. These targets will be put to governments at COP28 in December this year and are expected to be agreed.

He has also suggested putting pressure on the world’s biggest oil and gas producers to formulate a plan to reduce their greenhouse gas emissions in line with 1.5C above pre-industrial levels – which would be a big step forward for climate action if agreed.

Investment in oil and gas

In contrast, ESG news headlines have also recently featured the story that Shell is exploring selling a stake in its green energy business to focus on investment in oil and gas.

The company welcomed a new chief executive back in January and has since then scaled back its green energy commitments in favour of focusing on more profit-generating ventures such as natural gas production and trading.

What’s more, the chief executive has recently stated that we still “desperately need oil and gas” to avoid energy costs rising even more, as households struggle with the cost-of-living crisis.

Taking a more aligned approach

Climate change is a global emergency that needs tackling with international cooperation at all levels. That’s why world leaders reached the historic Paris Agreement in 2015, which sets out long-term goals to guide all nations across the globe.

This year, the first “Global Stocktake” will take place which will assess progress on the Paris Agreement goals, further encouraging countries to take ambitious climate actions that keep warming below 1.5C.

It’s clear that global leaders recognise the importance of an aligned approach when it comes to climate change, as well as holding all parties to account when it comes to tracking progress and results.

According to Sultan Al Jaber, COP28 will “build consensus amongst parties to drive climate action” and “bring the international community together at the crossroads of the world”. So, perhaps after the summit we will see more alignment as we tackle the climate emergency and make real change towards reaching global goals.

 

What do you think about the global approach to reducing CO2 emissions and tackling climate change? We’d love you to get in touch and share your thoughts.

Or if you’d like help with sharing what your company is doing to reduce carbon emissions and have a positive impact on the planet, please get in touch with us at esg@weareliquid.com.