Shell, BP, Equinor and Total not aligned with Paris climate agreement
Major oil and gas companies such as Shell, BP, Equinor and Total are not aligned with the Paris climate agreement and are in fact undermining the fight against the climate crisis with investments worth $50bn in fossil fuel projects, new research alleged.
Multiple projects that started up just last year involved extracting oil and gas from tar sands, deepwater fields and the Arctic despite the risks to the climate and shareholder returns.
According to a report by Carbon Tracker, those projects would not deliver adequate returns in a low-carbon world and yet they were approved.
Shell’s $13bn LNG Canada project and BP, Total, ExxonMobil and Equinor’s Zinia 2 project in Angola were among the best examples of such projects.
Already approved oil and gas projects will see the worldwide increase in temperatures surpass 1.5ºC, assuming carbon capture and storage remains sub-scale, the report said.
Andrew Grant, the author of the report, said: “Every oil major is betting heavily against a 1.5C world and investing in projects that are contrary to the Paris goals.
“Investors should challenge companies’ spending on new fossil fuel production. The best way to both preserve shareholder value in the transition and align with climate change goals will be to focus on low-cost projects that will deliver the highest returns.”