UAE oil giant raises climate goal ahead of key UN summit

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🗞️ Driving the news: Abu Dhabi National Oil Company (ADNOC) has expedited its net-zero carbon emissions target from 2050 to 2045
• Releasing its emissions data for the first time, ADNOC reported nearly 24 million metric tons of CO2 equivalent in 2022
• The company also anticipates a rise in oil and gas production in the future

🔭 The context: As the United Arab Emirates (UAE), home to state-owned ADNOC, gears up to host the 2023 U.N. Climate Conference (COP28), it has unveiled revised emissions targets
• Considering the UAE's 3% contribution to global oil supply and its greenhouse gas implications, these new commitments come in response to climate activists' criticisms over the appointment of ADNOC's CEO, Sultan al-Jaber, as the summit's president

🌎 Why it matters for the planet: ADNOC's updated ambition to hit net-zero emissions by 2045 is a vital stride in global climate change combat
• Yet, their pledge omits Scope 3 emissions, which arise from the combustion of their fuel and make up the bulk of emissions

⏭️ What's next: ADNOC aims to reduce greenhouse gas (GHG) emission intensity by 25% and increase carbon capture, utilization, and storage capacity by 500% by 2030
• The company's approach to Scope 3 emissions remains to be seen as more European oil majors set reduction targets for these emissions

💬 One quote: "ADNOC said its upstream carbon intensity was around 7 kilograms of carbon dioxide equivalent per barrel of oil equivalent, which is among the lowest in the world." (Yousef Saba, Fixed Income Correspondent at Reuters)

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