Chevron, Exxon adhere to climate initiative

Chevron, Exxon adhere to climate initiative

Chevron, Exxon adhere to climate initiative

/ Policy & Regulations / Monday, 24 September 2018 10:22

US oil giants Chevron and ExxonMobil joined an industry initiative to tackle climate change. The OGCI (Oil and Gas Climate Initiative) announced in a statement that these two behemoths, as well as the US group Occidental Petroleum, will be considered as members.

Since 2014, the initiative has included groups such as the British BP, Saudi Aramco and the French Total. However, Americans, more reluctant to engage, were not yet part of the club.

“The arrival of three US companies gives us more impact in leading the sector's response to climate change,” said Total's CEO, Patrick Pouyanné, on his Twitter account.

With the accession of these three new members, the OGCI now claims about 30% of the world's oil and gas production.

In November 2016, member groups announced the establishment of a $1 billion investment fund, OGCI Climate Investments, to support the development of technologies that can significantly reduce greenhouse gas emissions.

Its two priorities are the deployment of CO2 capture, storage and recovery technologies, as well as the reduction of methane emissions from the sector.

Each of the three new members will pay $100 million to this fund, says the OGCI. They also pledge to “recognize and support the Paris Agreement” regarding the climate, which the United States has disengaged, on the initiative of President Donald Trump.

Michael Wirth, CEO of Chevron, pledged to “work constructively to address the risks of climate change”.

“The collective efforts of the energy sector and society will be needed” to find solutions to these risks, said his ExxonMobil counterpart, Darren Woods.

The oil and gas giants are under pressure not only from environmental NGOs, but also from investors and local authorities such as New York City. The latter had for example sued five giants of the oil industry (including Exxon and Chevron) for their alleged role in climate change but was dismissed this summer.

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