Saudi Press

Saudi Arabia and the world
Saturday, Feb 22, 2025

Oil companies are gambling the climate on a future that hasn’t yet been invented

Oil companies are gambling the climate on a future that hasn’t yet been invented

How seriously should we take the pledges of oil and gas giants such as BP and Shell to reach net-zero emissions by 2050? Such promises are important not only for the companies' public perception, but for the confidence of their largest investors, such as pension funds.

A new report from Oxfam, that was published on 3 August, has cast serious doubts on the feasibility of the companies methods.

Examining the pledges of four major energy companies – BP, Shell, TotalEnergies and Eni – the paper argues that each of their strategies to reach net zero is dangerously over-reliant on carbon offsets. Instead of making fundamental changes to their business models and reducing their own emissions, they depend on planting huge numbers of trees to absorb and store the CO2 which is the main driver of anthropogenic climate change.

The report says this simply won’t work. There isn’t enough land on Earth for the offsets to be feasible: “it is mathematically impossible to plant enough trees to meet the combined net zero targets announced by governments and corporations”. This issue is compounded by the fact that using vast amounts of land for trees would create higher levels of poverty and hunger in low-income countries, because it would limit the land that could be used for agriculture.

All four energy companies have responded to the report, acknowledging its concerns but pointing out that their future plans do not exclusively involve carbon offsets. Instead, their absolute emissions can be reduced, they say, by shifting to renewable energies, using low-carbon fuels, and improving operational efficiency. Carbon capture technology also promises a way of removing CO2 from the atmosphere without using large swathes of land.

But Aditi Sen, the climate policy lead at Oxfam and co-author of the report, says net-zero plans must be “anchored in science-based targets”, and it is not clear how absolute emissions will be reduced by technologies that have yet to be deployed or developed. Companies' own reports on sustainability are characterised, she says, by “a lot of data gaps... a lot of assumptions... a lot of people that are banking on technologies that are still not there”.

Although there are promising carbon capture alternatives to the traditional methods, these have a long way to go. Simon Nicholson, co-director of the Institute of Carbon Removal Law and Policy, says that “companies investing today in technological carbon removal are doing us all a great service by potentially speeding up research and development activities. But investments today in research and development shouldn't count towards net-zero goals tomorrow, because the dreams of carbon removal may never come to pass.”

Worse still is the fact that the report focuses only on companies which do have a plan. According to Sen, they have all “taken some steps in recognition of the urgency of climate change”, while most others “have actually not made any climate plans”.

As noted in the report itself, “Some of the biggest players in the sector, from state-owned Saudi Aramco to ExxonMobil and Chevron, have so far declined to set any targets, effectively burying their heads in the sand, and abdicating their climate responsibility.”

Sen says that some companies also continue to “spread disinformation” about the climate crisis and their response to it.

Part of the problem is the idea of net zero itself, which Sen calls an “amorphous term” which is applied loosely and allows major companies to get away with “business as usual”. Robust government intervention is, she says, the “critical lever for getting these companies to transform at a much more rapid pace”. Without it, there will soon be no business to do at all.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Arabia and the United States Strengthen Ties Amid Global Developments
Saudi Arabia Hosts Global Conference to Promote Islamic Unity
The Impact of Artificial Intelligence on Education and Child Development
Saudi Arabia Announces Competition for Best Founding Day Outfits
Saudi-EU Food Security Officials Hold Talks to Strengthen Collaboration
Putin Expresses Gratitude to Saudi Crown Prince for Hosting US-Russia Talks
UK and Saudi Arabia Enhance Collaboration in Innovation and Technology
Denmark's Embassy in Riyadh Showcases Danish Cuisine with Saudi Influence
Saudi Artist Salman Al-Amir Unveils 'Tafawut' Exhibition in Riyadh
Saudi Arabia Offers Condolences to Kuwait Following Military Exercise Fatalities
Saudi Ministry of Islamic Affairs Completes Ramadan Preparations in Madinah
Etidal Secretary-General Hosts UN Counter-Terrorism Director in Riyadh
ADNOC Drilling Targets Over $1 Billion in Investments for 2025 Amid Gulf Expansion Plans
Derayah Financial Achieves Remarkable Growth in Saudi Brokerage and Asset Management
Saudi Arabia Shortlists 30 Firms for Mining Licenses in Eastern Province and Tabuk
Saudi Foreign Minister Engages Counterparts at G20 Meeting in Johannesburg
Oil Prices Decline Amid Rising US Inventories
Saudi Arabia's NDMC Plans Green Bond Issuance by 2025
Moody’s Affirms Egypt’s Caa1 Rating Amid Positive Economic Outlook
Oman and Saudi Arabia Strengthen Economic Ties with New Agreements
Saudi Arabia Investments Propel Expansion of Qurayyah Power Plant
Saudi Capital Market Authority Advances SPACs and Direct Listings
Global Energy Leaders Gather in Riyadh for Symposium on Energy Outlooks
Al-Ahsa Region Sees 500% Growth in Tourism as Saudi Arabia Prioritizes Development
Saudi Arabia Advances Entrepreneurial Ecosystem in Al-Ahsa with New Agreement
King Salman Approves Official Saudi Riyal Symbol
Saudi Credit Card Lending Reaches $8.4 Billion Amid Digital Payment Expansion
King Salman Approves Official Symbol for Saudi Riyal
Putin Thanks Saudi Crown Prince for Facilitating U.S.-Russia Discussions
Saudi Foreign Minister Attends G20 Meeting in Johannesburg
Saudi Arabia Prepares for Nationwide Founding Day Celebrations
Inauguration of Hira Park and Walkway Enhances Jeddah's Urban Landscape
Crown Prince Hosts Leaders for Informal Meeting in Riyadh Amid Gaza Rebuilding Plans
Saudi Official Highlights Achievements and Media's Role in National Transformation
Three Expatriate Women Arrested for Prostitution in Riyadh
Saudi Arabia's Diplomatic Evolution Highlighted at Saudi Media Forum
Healthy Eating and Preparation Essential for Ramadan Fasting
Saudi Arabia and Japan Forge Sustainable Textile Partnership
Advanced Limb Surgery Restores Mobility in Pediatric Cancer Patient
Jeddah Event Explores AI's Role in Boosting Saudi Arabia's SME Sector
UN Representative Highlights AI's Role in Perpetuating Gender Stereotypes
Saudi and Jordanian Leaders Discuss Enhanced Security Cooperation in Amman
Saudi British Society Honors Cultural Bridge-Builders at London Gala
Saudi Media Forum 2025 Explores AI's Role in Modern Journalism
Saudi Arabia's Saqer Al-Moqbel Appointed as WTO General Council President for 2025–2026
Saudi Deputy Ministers Engage in Diplomatic Discussions with U.S. and Dutch Officials in Riyadh
Saudi Arabia to Launch Iftar Program in 61 Countries During Ramadan
Saudi Visitors Expected to Spend £942 Million in UK During 2025
Saudi Arabia Gifts Kaaba's Kiswah to Uzbekistan's Center of Islamic Civilization
Digital Cooperation Organization Concludes Fourth General Assembly with Multiple Agreements
×