Global oil and gas emissions standard reportedly paused after Shell, others quit

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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