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

Key Milestone for Industry Decarbonization Efforts

The Oil & Gas Decarbonization Charter (OGDC) released its first Baseline Report on November 11, 2024, providing a framework to track emissions reduction across 54 signatories. Representing nearly 45% of global oil production, these companies are working towards net-zero operations by 2050. The report outlines progress since the Charter’s launch at COP28, focusing on achieving near-zero upstream methane emissions and zero routine flaring by 2030.

Progress on Emissions Reduction Goals

The report reveals that most signatories are on track with the Charter’s decarbonization goals, notably net-zero emissions by 2050, near-zero methane emissions, and eliminating flaring by 2030. However, gaps remain, which will guide further collaboration among companies to improve transparency in greenhouse gas (GHG) emissions reporting.

Collaborative Efforts and New Members

OGDC’s Collaborate & Share program has fostered peer-to-peer collaboration to share solutions for emissions reduction. New members, including Oil India Limited, PetroChina, and Vår Energi, demonstrate increasing momentum within the industry for global decarbonization alignment.

Investments in Future Energy Systems

Signatories are investing in renewable energy, hydrogen, carbon capture, utilization, and storage (CCUS) technologies to support the transition to low-carbon energy systems. These investments mark a shift towards clean energy, reducing emissions across the oil and gas sector.

A Roadmap for Future Action

OGDC’s next steps include providing resources to help signatories reduce GHG emissions, mitigate methane emissions, and eliminate flaring. The focus will be on creating net-zero roadmaps and improving emissions reporting frameworks to ensure measurable progress aligned with global goals.

Industry Engagement and Commitment

The CEOs of ADNOC, Aramco, and TotalEnergies emphasized the Charter’s achievements and the importance of shared learning. The collaborative model of the Charter ensures companies can advance their decarbonization journeys while improving climate performance across the industry.