Oil & Gas Decarbonization Charter Publishes First Baseline Report on Emissions Reduction Progress

Key Milestone for Industry Decarbonization Efforts
The Oil & Gas Decarbonization Charter (OGDC) has unveiled its first Baseline Report on November 11, 2024, setting a clear framework to help track and prioritize emissions reduction goals across its 54 signatory companies. These companies represent nearly 45% of global oil production and are committed to achieving net-zero operations by 2050. The baseline report outlines the progress made in the first year since the Charter’s launch at COP28, focusing on critical decarbonization targets such as near-zero upstream methane emissions and zero routine flaring by 2030.

Progress on Emissions Reduction Goals
According to the report, most signatories are aligned with the Charter’s ambitious decarbonization targets, particularly the goal of achieving net-zero emissions by 2050, and reducing methane emissions to near zero and eliminating flaring by 2030. The report also highlighted that significant gaps remain in certain areas, which will guide future support, collaboration, and knowledge-sharing initiatives among member companies. The report further emphasized that most companies already report on their greenhouse gas (GHG) emissions but there is a need for standardized frameworks to improve transparency and consistency in reporting.

Collaborative Efforts and New Members
OGDC’s Collaborate & Share program has facilitated peer-to-peer collaboration, allowing signatories to exchange best practices and share solutions for reducing emissions. Three new members—Oil India Limited, PetroChina, and Vår Energi—joined the Charter, underscoring the growing momentum within the industry to align with global decarbonization efforts.

Investments in Future Energy Systems
The report also noted that many companies are already investing in renewable energy, energy storage, low-carbon fuels, hydrogen, and carbon capture utilization and storage (CCUS) technologies. These investments are seen as key to transitioning the oil and gas sector toward sustainable, low-carbon energy systems. As the industry continues to invest in emerging technologies, the report indicates a collective shift towards clean energy solutions, with a clear focus on reducing emissions across the value chain.

A Roadmap for Future Action
OGDC’s next steps include focusing on providing resources and guidance to signatories to help them reduce their GHG emissions, mitigate methane emissions, and eliminate flaring. The organization will also support companies in creating net-zero roadmaps and improving emissions reporting frameworks, ensuring progress is measurable and aligned with the Charter’s global goals.

Industry Engagement and Commitment
The CEOs of ADNOC, Aramco, and TotalEnergies, founding members of OGDC, expressed pride in the Charter’s achievements so far and stressed the importance of learning from diverse industry experiences. They emphasized that while some companies are further along in their decarbonization journeys, the Charter’s collaborative model would allow for shared learning and improved climate performance across all signatories.