The United Nations Environment Programme’s (UNEP) Emissions Gap Report 2020 highlights that GHG concentrations in the atmosphere continue to rise.

Even with the full implementation of Nationally Determined Contributions (NDCs) this report concludes that we are heading for a world that will be 3.2°C warmer by the end of this century, failing to meet the Paris Agreement’s call for ‘holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.’

Ipieca and its members support the aims of the Paris Agreement. In a world aspiring towards a net-zero future it is critical that Ipieca upholds its position as part of the international dialogue on the energy transition and that members continue to advance their contribution to resilient low-emissions pathways. Ipieca can have a particular impact through the leading role that it takes, on behalf of its membership, to engage the UN and other key stakeholders in support of the aims of the Paris Agreement. It also plays a crucial ongoing role in convening the industry and collaborating with stakeholders, including other sectors, to explore and enable low-emissions pathways and scale up innovative solutions.

Achieving the long-term temperature goals of the Paris Agreement to limit global warming to well below 2°C and pursue 1.5°C depends strongly on implementing mitigation action by 2030.’

UNEP, Emissions Gap Report 2020

Companies within the sector have opportunities to increase transparency and stakeholder engagement as well as to advocate the design of policies which support the aims of the Paris agreement. Investing in technology and innovation to enable low-carbon products and solutions, as well as tackling emissions from operations – namely methane emissions, venting carbon dioxide and flaring – are key reduction levers for the sector. Many of these options are part of a burgeoning circular carbon economy (CCE), a concept that has recently been endorsed by the G20, that leverages a range of technologies and natural climate solutions to capture, store and utilize CO2 to create pathways to reduced emissions and continued economic growth.

  • Climate | IMPACT OPPORTUNITY 1: Policy and partnerships
    Chevron-down

    Promote effective policies and partnerships that support innovation and deployment of technologies and activities needed to transform the energy system and build climate resilience.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    1.Lead engagement on behalf of the membership with the UN, including participation in the UNFCCC, IPCC, UNEP, ICAO, IMO and dialogue with key stakeholders in support of the Paris Agreement and the subsequent transformation of the energy system.7.A
    8.3
    13.2    		MS
    2.Convene the industry to enable emissions reductions and a positive contribution to the energy transition through development of good practices and solutions.7.1
    7.A
    7.3
    8.4
    13.3    		MS
    3.Collaborate with stakeholders, including other sectors, to explore and enable low-emissions pathways and scale up solutions.7.A
    7.3
    8.4
    9.5
    12.2    		HS
    4.Convene the industry to raise awareness and develop good practice guidance on climate-related partnerships and collaborations that support the aims of the Paris Agreement.12.8
    13.3    		MM
    5.Develop a good practice guide that outlines approaches and activities companies have taken to build resilient portfolios that support the aims of the Paris Agreement.12.8
    13.3    		MM

    Options for oil and gas companies

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    6.Increase stakeholder engagement to advocate the design of policies which support the aims of the Paris agreement and effective market-based solutions that consider an explicit or implicit value for carbon.12.C
    13.2
    13.3    		HS
    7.Accelerate climate policy momentum by providing technical support, data and resources to policymakers and other relevant stakeholders.13.1
    13.2
    13.3    		MS
    8.Report approach to managing climate-related risks including discussion on risk and opportunities related to the energy transition.12.6
    13.3    		MS
    9.Collaborate with other sectors to raise awareness on responsible use of oil and gas products.7.3
    12.2
    12.8
    13.3    		LM
    10.Be transparent about how company strategy is consistent with the aims of the Paris agreement.7.A
    8.3
    12.6
    13.1
    13.2
    13.3    		MS
  • Climate | IMPACT OPPORTUNITY 2: Innovation
    Chevron-down

    Invest in technology and innovation that will enable low-carbon products and solutions.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    11.Increase capacity building and facilitate discussions between companies across sectors on business models consistent with the aims of the Paris Agreement, including coordination of an innovation platform to address key barriers to viability for new and emerging low-carbon solutions and products.7.A
    8.4
    9.B
    9.5
    12.2
    12.6
    13.3    		HS-M
    12.Establish dialogue with other sectors to share good practices and knowledge on leveraging gas infrastructure for hydrogen and other low-carbon solutions.7.1
    7.3
    7.A
    9.4
    12.2
    13.3    		HS
    13.Support the scaling of carbon removal technologies such as CCS by facilitating technical knowledge transfer and guidance related to key issues, such as environmental responsibility, financial incentives, policy and liability concerns.7.A
    9.4
    9.5
    13.3    		HL
    14.Convene and disseminate knowledge and good practice around scope 3 emissions, including categorization, value chain emission analysis, measurement (incl. technology requirements) and reporting, potential for scope 3 target-setting, engagement along the value chain, and capacity issues in the value chain.12.6
    12.8
    13.2
    13.3    		LS
    15.Develop guidance and good practices for Natural Climate Solutions in collaboration with groups such as the OGCI and the Natural Climate Solutions Alliance led by WBCSD and the World Economic Forum.13.3
    15.1
    15.2
    15.3
    15.5    		HS

    Options for oil and gas companies

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    16.Scale innovative and venture business models to help customers reduce emissions.8.4
    12.2
    12.8
    13.2
    13.3    		HM
    17.Increase commercial viability of existing low-carbon products that can reduce end use emissions such as sustainable biofuels, hydrogen, and other solutions like CCS through increased investment in innovation and collaboration.7.A
    8.4
    9.4
    9.5
    9.B
    12.2    		HM
    18.Deploy and, where appropriate, advocate for gas infrastructure that is compatible with decarbonized gas (e.g. hydrogen, ammonia).7.1
    7.3
    7.A
    9.4
    12.2
    13.3    		HS
    19.Facilitate investment, deployment and scale up of a commercially viable, safe, and environmentally responsible CCS industry by investing in CCS projects.8.4
    9.4
    9.A    		HM-L
    20.Facilitate investment, deployment and scale up of large-scale Natural Climate Solutions that follow robust environmental and social principles.8.4
    8.8
    12.2
    13.2
    15.1
    15.2
    15.3
    15.5    		HM
  • Climate | IMPACT OPPORTUNITY 3: Operations
    Chevron-down

    Advance emissions reduction initiatives for operations in support of the aims of the Paris Agreement.

    Actions for Ipieca

    Impact pathwaysPriority SDG targets*Level of potential impact on the SDGsTimeframe
    21.Promote good practices and guidance in support of reducing methane emissions to near zero.7.A
    9.4
    12.2
    12.4
    12.6
    13.2
    13.3    		HS
    22.Contribute to the GHG reductions strategies of the IMO and ICAO through the consideration of alternative fuels, including life cycle analyses of potential options.7.A
    8.3
    13.2    		MM
    23.Convene and disseminate knowledge and good practices for oil and gas companies in the area of net-zero emissions as a key element of the energy transition and low-emissions pathways.7.A
    12.6
    13.2
    13.3    		HM
    24.Deepen engagement with sector beyond oil and gas to build capacity and share knowledge on emissions reductions, flare management good practice and impacts of climate change.7.2
    7.3
    7.A
    9.4
    12.2
    13.2
    13.3    		HM

    Options for oil and gas companies


    Impact pathways    		Priority SDG targets*Level of potential impact on the SDGsTimeframe
    25.Adopt methane intensity reduction targets consistent with best available methodology. Consider deploying new technologies for better detection and quantification of methane.9.4
    12.2
    12.4
    13.2
    13.3    		HM
    26.Support the aims of the World Bank’s ‘Zero Routine Flaring by 2030’ initiative.9.4
    12.4
    13.2
    13.3    		HS
    27.Strengthen operational GHG emissions reduction initiatives by identifying emissions hotspots, implementing resource efficiency best practices, encouraging innovation and disclosing progress.7.3
    7.A
    9.4
    12.2
    12.4
    12.6
    13.2
    13.3    		HS
    28.Report on company initiatives and progress towards improving energy efficiency and consuming less energy.12.2
    12.6
    13.1
    13.2    		LS
    29.Engage with host governments and regulators to understand development plans for energy provision and translate into country value propositions and activities.7.1
    7.2
    7.3
    7.A
    8.4
    13.2
    13.3    		HM

Key
Level of potential impact on the SDGs: L - Low | M - Medium | H - High
Timeframe: S - 1–3 yrs | M - 4–6 yrs | L - 7–9 yrs

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