IPIECA welcomes the Paris Agreement and sees it as a crucial step in global efforts to address climate change. It is the culmination of 6 years of efforts by nations to reach a new agreement, during which efforts deployed by all stakeholders – governments, business and civil society – have intensified and contributed to reaching an ambitious outcome. IPIECA had called for an effective and clear agreement as part of its Paris Puzzle communication in the run-up to the conference. The agreement is an important milestone that will send a strong signal going forward, but more work and action by all stakeholders will be needed going forward. IPIECA will continue to play its role and will be assessing the implications of the Agreement and the ongoing IPIECA work programme for the industry.
What is the Paris agreement?
The Agreement reached at the 21st Conference of the Parties (COP-21) under the UN Framework Convention on Climate Change (UNFCCC), committed all countries to undertake action on climate change and report on their progress for the first time.
- “Aims to strengthen the global response to the threat of climate change… by holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels”
- Aims to peak greenhouse gas (GHG) emissions as soon as possible and reach net-zero in the second half of the century
- Commits all countries to regular reporting, including on mitigation, adaptation and finance
- Agrees 5-yearly cycles for increasing national plans and targets starting in 2020, supported by global stock-takes (from 2018) to assess progress and review any new information
- Makes commitments in climate finance, setting $100 billion per annum as the floor for financial transfers from developed to developing countries from 2020
- Introduces the foundation to support the development of global carbon emissions markets through trading mitigation actions, and incentivises mitigation through the creation of a CDM like mechanism for post-2020
A pathway to a low-emission future
IPIECA supports and encourages governments in their efforts to reduce GHG emissions. Meeting the climate change challenge will require actions from all parts of society, including governments, civil society and the private sector. We believe it is possible to address climate change risks whilst also meeting growing global energy demand and supporting economic development. The oil and gas industry must be a key part of the solution.
The IPIECA Paris Puzzle: The pathway to a low-emissions future – developed 6 months ahead of COP‑21's crucial agreement – represents our global membership view on the challenge. The series of 6 papers address what we see as key components of efforts to address climate change, and demonstrate the industry’s commitment to meeting the challenge. Much more needs to be done to address climate change. With the right policy frameworks and enablers to encourage investment in transforming technology, the public and private sectors and civil society can cooperate to achieve effective solutions.
What IPIECA is doing
The industry’s history of innovation, global reach, knowledge and technical expertise positions it to help develop and provide credible future energy solutions. At IPIECA, we believe that the industry is already playing a part in this transition and will continue to do so, by improving the efficiency of existing technologies and resources, and contributing to the development of new ones.
We see the role of natural gas, government-led market mechanisms, CCS, and the use of lower carbon fuels, together with effective policy mechanisms, as the necessary components in any practical response to address GHG emissions, and deliver on the goals set by the Paris agreement.
In 2016 and beyond, IPIECA will continue to demonstrate our commitment to meeting the challenge by working with our members and stakeholders on these issues. We will be undertaking work on topics including CCS, carbon pricing, good practice on methane emissions management, climate reporting and transparency. In the first half of this year, we will be assessing the outcome and implications of the Paris agreement to help our industry develop our vision for low–emissions pathways and how they might drive change and where the industry can play a key role.
- Climate & Energy
- 18 January 2016