{"id":38076,"date":"2023-10-11T09:30:02","date_gmt":"2023-10-11T08:30:02","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=38076"},"modified":"2023-10-11T09:30:02","modified_gmt":"2023-10-11T08:30:02","slug":"the-potential-impact-of-scaling-back-on-climate-targets","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/the-potential-impact-of-scaling-back-on-climate-targets\/38076\/","title":{"rendered":"The potential impact of scaling back on climate targets"},"content":{"rendered":"
Much was made of the likes of BP, Shell, and Suncor scaling back their climate targets earlier this year as their profits hit record highs. BP’s profits alone more than doubled to $27.7bn (\u00a323bn) in 2022<\/a>, as energy prices soared due to geopolitical tensions and record temperatures.<\/p>\n These scale-backs were disappointing for many, given the increasing global focus on decarbonisation. Yet, these decisions were influenced by a combination of factors. A perfect climate storm, some might say.<\/p>\n A global pandemic, a war in Europe, and double-digit inflation were not foreseen when these companies initially set their climate targets and laid out their strategies. Even the most optimistic observers understood that some adjustments were inevitable.<\/p>\n After all, in times of economic uncertainty, there typically follows a prioritisation of the short-term over the long-term goals. What is certain, though, is that investment in oil and gas is going up, not down.<\/p>\n What we have seen happen with energy prices<\/a> has re-invigorated the belief that there is still a long-term need for oil and gas and, most definitely, a short-term opportunity. Given that it is still the core business of these companies and will remain so for many years, they are doing what any business is expected to do when demand for its product goes up.<\/p>\n Unfortunately, the impact is that achieving net zero sooner rather than later has lowered in priority. For now, at least.<\/p>\n With the scaling back of climate targets, the pace and extent of the transformation towards net zero will undoubtedly be hindered. On this evidence, the trajectory to net zero for oil and gas companies will now have to be much steeper between 2030 and 2050. This makes it far more challenging to reach the goals they previously set themselves.<\/p>\n The move will also, of course, impact cumulative global emissions, making it far more challenging to meet the Paris Agreement<\/a> that was adopted by 196 Parties at the UN Climate Change Conference (COP21) in 2015 to aim to \u2018limit the temperature increase to 1.5\u00b0C above pre-industrial levels\u2019.<\/p>\nAdjustments to climate targets were inevitable<\/h3>\n
The path to net zero will be hindered<\/h3>\n