{"id":84395,"date":"2024-05-23T00:00:00","date_gmt":"2024-05-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/05\/23\/big-oil-fails-energy-transition-criteria-across-the-board\/"},"modified":"2024-05-23T00:00:00","modified_gmt":"2024-05-23T00:00:00","slug":"big-oil-fails-energy-transition-criteria-across-the-board","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/05\/23\/big-oil-fails-energy-transition-criteria-across-the-board\/","title":{"rendered":"Big oil fails energy transition criteria across the board"},"content":{"rendered":"

Major oil companies\u2019 climate pledges are underwhelming: <\/strong>The largest US and Europe-based oil and gas producers have set emission reduction goals that fall short of what would be necessary to keep warming levels below the Paris Agreement\u2019s threshold of 1.5 C, The Guardian<\/a> reports, citing a report (pdf)<\/a> by the Big Oil Reality Check from Oil Change International. On a scale from \u201cfully aligned\u201d to \u201cgrossly insufficient,\u201d Chevron, ConocoPhillips, and ExxonMobil ranked grossly insufficient in all 10 criteria used by the report\u2019s authors. The projects planned by the eight companies could lead to more than 2.4C warming, and none have plans to curb fossil fuel or extraction projects. In fact, six of the companies have clear plans to increase polluting projects.<\/p>\n

Not really a surprise: <\/strong>Low-carbon transition plans published by big oil companies have met only 19% of London-based green investment consultant IIGCC \u2019s criteria for effective strategies<\/a>. Plans set out by 10 major oil and gas companies \u2014 including Exxon Mobil, Chevron, Shell and BP \u2014 were insufficient for investors to gauge transition risk accurately. Companies are also failing to disclose key info such as details on carbon capture or upstream production, making it unclear how their goals will be achieved. European companies generally offer better disclosure, more aligned targets, and greater investment in climate solutions compared to their North American counterparts, which lag in diversifying into low-carbon energy production. North American companies met just 3% of metrics assessing climate solutions.<\/p>\n

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New solar projects in China fell 32% y-o-y in March despite declining prices of PV <\/strong>equipment<\/strong>, Reuters<\/a> reports, citing calculations it made using official data. This marks the lowest level for the country in 16 months and comes on the back of \u201cgrid bottlenecks pile up, market reforms increase uncertainty for [solar power generators], and the best rooftop space runs short,\u201d the newswire writes. The lack of power grid capacity to integrate excess energy from solar stations has deterred price support from regulators and led to grid managers having to block up to 50-70% of energy from being added to the grid, Reuters added. <\/p>\n

China\u2019s slowdown spells more trouble for the West:<\/strong> Given that China's PV manufacturing is expanding faster than the country\u2019s ability to construct more solar stations, the solar equipment producers will be forced to continue exporting and dumping<\/a> its supply to Western market, which is likely to exacerbate the political tensions between the two sides. <\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n