World’s top oil firms agree $1b climate change fund

World’s top oil firms agree $1b climate change fund

A group major global oil firms have announced agreement to create a US$1 billion fund to reduce their climate change impact.

Announced on the day the Paris climate change agreement came into force last week, the fund will focus on reducing leaks of natural gas, capturing and storing carbon emissions when gas is burned and increasing the fuel efficiency of vehicles.

The 10 companies which make up the Oil and Gas Climate Initiative (OGCI) produce a fifth of the world’s oil supply. The OGCI comprises the CEOs of BP, CNPC, ENI, PEMEX, Reliance, Repsol, Aramco, Shell, Statoil and Total.

Bob Dudley, chief executive of BP and OGCI chairman, said: “We all absolutely realise the world will move to a low-carbon world. Don’t worry, we got it. The technology to monitor and reduce fugitive methane [gas] emissions, that is an essential licence for us to advocate for natural gas.”

Patrick Pouyanné, CEO of Total, said the technologies the new fund would back were vital: “It is a matter for us of being able to maintain our business in the future.”

However with the size of the fund averaging $10 million per company per year critics have said it is just a drop in the ocean and a token gesture by Big Oil.