illuminem summarises for you the essential news of the day. Read the full piece on The Globe and Mail or enjoy below:
🗞️ Driving the news: Development of a global oil and gas sector emissions standard has been put on hold after Shell, BP, and Enbridge withdrew from the Science-Based Targets initiative (SBTi) advisory group
• The draft standard, which would have required companies to stop developing new oil and gas fields by 2027 or upon submitting a climate plan, was deemed too restrictive by several companies, prompting their exit
• SBTi stated the pause is due to the resource intensity of further development, not the departures
🔭 The context: The SBTi is a widely respected body that validates corporate climate targets against scientific pathways aligned with the Paris Agreement
• Since 2019, it has sought to create a specific net-zero standard for the oil and gas sector, which accounts for a significant share of global emissions
• Drafts circulated earlier this year tightened expectations on upstream development, meeting resistance from industry members who argue for more flexibility in transition pathways
🌍 Why it matters for the planet: A robust, science-based standard for oil and gas companies is crucial to ensuring the sector’s emissions decline in line with climate goals, given its outsized contribution to global warming
• Without a common framework, risks of inconsistent targets and greenwashing increase, undermining investor and public confidence in corporate climate action
• Industry pushback highlights the tension between climate science and business-as-usual in fossil fuel development
⏭️ What's next: SBTi has committed to revisiting the oil and gas standard in the future but has not set a timeline, citing internal capacity constraints
• The lack of a sector-specific benchmark leaves oil and gas firms to set their own methodologies, likely prolonging disputes over what constitutes credible Paris-aligned targets
• Stakeholders — including investors, regulators, and civil society — are expected to increase scrutiny of corporate plans and call for greater transparency
💬 One quote: “The draft standard did not reflect the industry view in any substantive way,” a Shell spokesperson told Financial Times, stressing the need for approaches that account for “realistic societal and economic changes”
📈 One stat: The oil and gas sector accounts for roughly 42% of global energy-related CO₂ emissions, according to the International Energy Agency
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