Oil and Gas Decarbonization Index
For the feasibility study of an “Oil and Gas Decarbonization Index”, Index Initiative focused on the role of oil and gas companies in decarbonizing the energy system. There is a strong case for developing this index as the burning of fossil fuels is a major contributor to climate change. Oil and gas accounts for over half of the CO2 emissions related to the combustion of fossil fuels. As major energy providers and due to the fact that oil and gas will remain needed as an energy source in the foreseeable future, oil and gas companies have an important role in the low-carbon transition. Energy is an essential factor for development and poverty eradication and is interconnected with all other SDGs. Decarbonizing the current energy system can contribute to achieving SDG 13 (climate change) and the goals of the Paris Agreement. This will also contribute to other SDGs such as SDG 1 (no poverty), SDG 3 (good health and well-being), SDG 7 (affordable and clean energy), and SDG 12 (responsible consumption and production).
Since the completion of this feasibility study, Index Initiative has continued its engagement with relevant stakeholders and has organized a seminar during the EU Green Week to gather stakeholders’ perspectives on the role of oil and gas companies in greening the energy system. We believe there is a strong case for expanding the scope to include a broader range of industries that have considerable impact on achieving SDG 13 (e.g. electric utilities, automotive). Stakeholder consultations during the coming period will focus on determining the scope of this Climate Action Benchmark and building a coalition of stakeholder supporting its development.