The International Energy Agency (IEA) has warned oil producers to allocate around 50% of their yearly investment towards renewable energy projects by 2030 in order to stay in line with international climate objectives and meet the expectations set by the 2019 Paris climate agreement.
The IEA cautioned that in order to meet these targets, current policies would necessitate 32 billion tons of carbon to be captured every year by 2050.
The warning issued by the agency, regarded as the energy supervisor of Western countries, emphasizes the need for oil and gas production leaders to invest more funds in transitioning towards eco-friendly energy sources.
According to the IEA, oil and gas producers only contribute 1 percent of global investment in green energy at the moment
In the past year, companies allocated 2.5 percent, or $20 billion, toward the sector, which indicates that by 2030, they would need to make a significant strategic transition towards green technologies in order to meet the set climate goals.
Although major companies such as BP, Chevron, ExxonMobil, Shell, and TotalEnergies have shown commitment to decarbonization strategies, numerous companies are hesitant to follow suit due to a spike in oil and gas prices and concerns about energy security stemming from Russia’s invasion of Ukraine.
Additionally, the IEA warns oil producers against solely investing in new carbon capture projects, stating that the technology would not be a substitute for cutting emissions and “cannot be used to maintain the status quo.”
Fatih Birol, the executive director of the IEA, stated that the oil and gas industry will confront a critical point at COP28 in Dubai. This stark message is intended to serve as a wake-up call to leaders in these industries.
With the 2023 UN Climate Change Conference set to begin on November 30, Birol emphasized that maintaining the status quo is not socially or environmentally responsible in light of the escalating climate crisis.