Oil, gas firms invest less than 1pc in green energy

21 January, 2020 12:00 AM printer

PARIS: While certain oil and gas majors have sought to burnish their green credentials, overall less than one percent of the sector’s total investment is going into clean energy projects, a report said on Monday.

Experts are increasingly worried that that target set in the 2015 Paris accord to limit global temperature rises to “well below” 2 deg C is rapidly becoming unattainable, condemning the world to a cascade of costly droughts, superstorms, floods and wildfires as greenhouse gasses warm the atmosphere, report agencies.

“A commitment by oil and gas companies to provide clean fuels to the world’s consumers is critical to the prospects for reducing emissions,” the International Energy Agency said in a summary of its report on the role the oil and gas industry can play in a transition towards cleaner energy.

The agency, which advises industrialised nations on energy issues, found “few signs of a major change in company investment spending.”

It added: “So far, investment by oil and gas companies outside their core business areas has been less than 1 per cent of total capital expenditure.”

Leading firms dedicate around five percent of their total investment to projects outside their core oil and gas businesses, it said, mostly into solar and wind projects.

“A much more significant change in overall capital allocation would be required to accelerate energy transitions,” said the IEA.