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AfrElec CLIMATE CHANGE AfrElec

Fossil fuel producers not

prepared to meet Paris targets

GLOBAL NONE of the world’s fossil fuel producers will companies, five oil and gas and two coal, had
be able to limit climate warming to 2°C by 2050, managed to bring their future emissions targets
according to new research published this week. into line with the Paris Agreement.
Research from the Transition Pathway Initi- These are: Royal Dutch Shell; Repsol; Total;
ative, which is backed by the London School of Eni; Equinor; Glencore and Anglo American.
Economics and a number of investors, warned No Chinese or US companies were judged to
that oil, gas and coal companies are not putting in be in line with Paris commitments.
place policies that will limit temperature growth Matthews said there is yet to be “meaningful
and contribute to combating climate change. action” from US companies to reduce carbon
The report examined 125 oil and gas produc- emissions.
ers, coal miners and electricity groups on their The report highlighted that that the 2015
preparedness for a lower-carbon economy. Paris Pledges would only reduce emissions to
“Investors have witnessed a flurry of sig- 3.2°C warming, according to the UN Environ-
nificant climate announcements by fossil fuel ment Programme, and are widely regarded as
majors this year, so it is striking this independent insufficient to prevent dangerous climate change.
research still shows those commitments do not TPI also assessed 66 electric utility compa-
yet align with limiting climate change to 2°C,” nies, finding that 39 (59%) were aligned with the
said Adam Matthews, co-chair of the Transition Paris pledges, while 22 (33%) were aligned with
Pathway Initiative. the most ambitious ‘below 2°C’ benchmark.
On the other hand, the report found that The research showed that 94% of energy
many companies in the electric utility sector companies now have a policy commitment to
were judged to be aligned, with 39 meeting Paris act on climate change, but fewer take the more
Pledges and 22 meeting the more ambitious advanced management quality steps. For exam-
‘below 2°C’ benchmark. ple, just 9% of companies ensure consistency
The report’s author, Professor Simon Dietz, between their climate change policies and the
said this difference comes from more regulation positions taken by lobbying groups of which they
on the electricity sector and that the core busi- are a member.
ness model is not under threat, as technology for The report measured companies on their
decarbonising electricity already exists. “carbon performance,” and considered such fac-
“For oil and gas companies, the route to Paris tors as the carbon intensity of their products and
alignment is much more of a challenge to their their reduction targets.
basic reason for being. Some companies have A number of large energy companies have
started grappling with this challenge, but none made promises to reach net zero emissions,
have met it yet, he said.” meaning they would be removing as many emis-
The report also found that seven European sions as they produce, by 2050.™

Week 40 08•October•2020 www. NEWSBASE .com P7