It’s a Catch-22 situation: to meet ambitious emissions targets by investing in low-carbon technologies, they will have to rely on revenue from expanding their businesses in oil and gas, for which there is still growing global demand.
The confusion has been thrown into stark relief this week at the World Economic Forum in the Swiss ski resort of, where oil majors, state oil giants and ministers have been debating behind closed doors in their biggest gathering of the year. Equinor has meanwhile launched a target to reduce emissions to near zero in Norwegian offshore production by 2050, and is co-investing in a $10 billion wind farm in Britain, the world’s largest.
Fatih Birol the head of the International Energy Agency, the energy watchdog for industrialised nations, said the reality was that industry investments in clean energy represented a small fraction of their spending. He said the industry would focus in coming years on reducing methane emissions from their own operations, which constitute 15% of all global greenhouse emissions.
Birol also said coal-fired plants were the main global source of emissions. “The problem is how to address this coal issue without hurting those developing countries.”
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