Oil and Gas Investments Funding “Climate Catastrophe”

Oil and gas companies – including Chevron, Shell and TotalEnergies – have US$58 billion committed to projects which could “tip the world towards climate catastrophe”. A report by climate and financial markets think tank Carbon Tracker says investments approved in 2021 and Q1 2022 would only be economic if the demand for oil and gas pushed temperatures past 2.5°C of global warming. The report warns that oil and gas firms are due to make final investment decisions on a further US$23 billion of investment in projects which would push warming beyond 2.5°C. “Asset owners seeking 1.5°C-aligned portfolios cannot credibly own financial interests in companies that continue to invest in new conventional oil and gas projects,” Carbon Tracker said. From a 2019 baseline, Chevron is on course for 16% production growth by 2026 and Exxonmobil for 8% by 2027, with Eni, Shell and TotalEnergies planning to increase gas production. BP is the only company planning to cut oil and gas production – by 43% by 2030, which would be “broadly in line” with a 1.5°C pathway. Analyst Thom Allen said: “Oil and gas companies are marketing themselves as part of the solution to climate change while simultaneously planning production increases that would lead to climate catastrophe. Companies cannot claim to be aligned with global climate targets unless they are planning to cut production.” 

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