New figures released today reveal that more than 400 oil and gas projects have been approved globally in the last two years, despite growing calls to shift away from hydrocarbon development. These projects have been given the green light by governments and corporations, signaling a profound disconnect between current actions and the urgent need to combat climate change.
The nonprofit organization Reclaim Finance analyzed data from Rystad Energy consultants and found that approximately 200 private and public corporations across 58 countries are involved in these 437 new fossil fuel projects. This stark reality highlights the contradiction between continued fossil fuel exploitation and the goals set in the Paris Agreement to limit global warming to 1.5 degrees Celsius.
The International Energy Agency (IEA) issued a warning earlier this year, stating that no new oil and gas fields should be approved if global net zero emissions targets are to be achieved. However, the recent figures demonstrate that the fossil fuel industry shows no signs of slowing down.
The majority of these new projects have received their final investment decision, meaning that investors have committed to their development and production. Once operational, these projects will continue to extract vast quantities of oil and gas for years to come.
State-backed oil companies account for 57 percent of these projects, while seven oil giants, including BP, ExxonMobil, Shell, and Chevron, are responsible for 22 percent. Qatar alone is expected to host 17 percent of the total future production, followed by Saudi Arabia with 13 percent.
Despite the increasing prominence of renewable energy sources, oil and gas demand is projected to peak by 2030, according to the IEA. Oil companies argue that the transition to renewables is not happening quickly enough to fill the gap, emphasizing the ongoing need for oil and gas.
The approval of these new projects raises questions about the willingness of governments and corporations to align their actions with the urgency of the climate crisis. It is crucial for stakeholders to prioritize sustainable alternatives and accelerate the transition to a low-carbon economy to mitigate the potentially catastrophic consequences of climate change.
What are the new figures about?
The new figures reveal that more than 400 oil and gas projects have been approved globally in the past two years, despite calls to reduce hydrocarbon development.
Who analyzed the data?
The data was analyzed by the nonprofit organization Reclaim Finance, utilizing information from Rystad Energy consultants.
Which countries and corporations are involved in these projects?
Nearly 200 private and public corporations across 58 countries are involved in the 437 new fossil fuel projects. State-backed oil companies account for 57 percent of these projects, with seven oil giants contributing 22 percent.
What does this mean for climate change efforts?
The approval of these projects highlights a significant disconnect between current actions and the urgent need to combat climate change. It raises concerns about the willingness of governments and corporations to align their actions with global climate goals.
What is the projected future demand for oil and gas?
According to the International Energy Agency (IEA), global demand for oil and gas is expected to peak by 2030, illustrating the ongoing need for these energy sources despite the growing importance of renewables.