A new International Energy Agency report outlining possible paths for the energy industry to reach net-zero emissions by 2050 has striking implications for the oil and gas industry, Ceres said in a statement.
The report states that “beyond projects already committed as of 2021, there are no new oil and gas fields approved for development in our pathway.”
Andrew Logan, senior director of oil and gas at Ceres, said:
“This is a very significant report and marks a big shift in IEA projections. The industry has used IEA scenarios as a shield to justify its continued investment in oil and gas for a very long time, so this switch is quite momentous. It’s going to be an interesting reality check for companies, but also for investors, and will put engagement in very stark terms. The IEA just said that no new investment in oil and gas is needed in a Paris-aligned scenario, so it is going to get challenging for the companies that have previously said that they're net-zero and Paris-aligned.”
Tracey Cameron, senior manager of corporate climate engagement at Ceres, said:
“This is a really big deal. The IEA is what governments and companies all look to when they're developing their strategies, so to say that new investment in oil and gas needs to stop really turns the page for this industry. Up until this point, it's almost as though there were blinders on financial reporting for anything to do with climate, when really it's a fundamental impact on the business and on the strategy.”
About Ceres
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.