Today marks a turning point in climate action. Less than a year after it was agreed by almost every nation on earth the Paris Agreement has come into effect. We welcome the agreement and its swift entry into force because it sets a clear direction of travel that will help all actors, governments, industries and individuals, to take appropriate actions and make investments towards a lower emissions future. As CEOs or Chairmen of OGCI member companies we are committed to showing leadership in our industry’s response. We believe there is significant need and many opportunities for innovation and investment in solutions that can reduce GHG emissions on a large scale – and we are in action to take them.
We are very proud to announce the formation of OGCI Climate Investments. OGCI Climate Investments has been set up to invest one billion dollars over the next decade to accelerate the development of innovative technologies that, once commercialized, have the potential to reduce greenhouse gas emissions on a significant scale. We believe that collaborative investment – on top of all the work our companies are doing individually – will make a demonstrable difference. We intend to fund development and demonstration projects as well as new businesses.
The greatest share of our intended investments will focus on maximizing the climate benefits of natural gas by minimizing methane emissions along the gas value chain, and on enabling oil and gas to meet energy demand sustainably in a tightly carbon-constrained world by ensuring that carbon capture, use and storage can be deployed on a much wider scale. Two further areas where we believe collective investment could deliver a step change are improving industrial energy efficiency and reducing the carbon and energy intensity of transportation.
This year we have focused on defining and taking actions that are needed now and out to around 2040. Next year we will look at the technologies and options that could be compatible in the longer term with the very ambitious goal of net zero emissions in the second half of the century.
Our $1 billion commitment is significant in itself but it is just our starting point. It can be amplified in many ways. We will leverage additional funds by working in partnership with likeminded initiatives across all stakeholder groups. We will increase investment ourselves by deploying successful low emissions technologies in our own businesses and operations. We will use the considerable convening and catalytic power of our expertise, facilities and networks to galvanize action both within our industry and beyond. OGCI members produce over one fifth of the world’s oil and gas. We can and will make a difference.