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Globe and Mail
22-07-2025
- Business
- Globe and Mail
Energy Giants Abandon Global Net Zero Group Over Oil and Gas Clampdown
Shell and other major energy players have withdrawn from a high-profile effort to establish a global 'net zero' emissions benchmark, after draft proposals effectively demanded an end to new oil and gas developments, according to documents seen by the Financial Times. The companies—Shell, Norway's Aker BP, and Canada's Enbridge—exited an expert advisory group convened by the Science Based Targets initiative (SBTi), a widely followed climate standard-setter whose approval is sought by global corporations ranging from Apple to AstraZeneca. Their departures reflect mounting tensions between the fossil fuel industry and evolving climate disclosure and accountability frameworks. A Standoff Over New Oil and Gas Projects The draft standard at the heart of the dispute would have prohibited companies from pursuing new oil and gas fields after submitting a climate plan to the SBTi, or after 2027—whichever came first. It also called for a sharp decline in fossil fuel production, escalating concerns in the oil and gas industry that the standard would impose an unworkable path toward net zero targets. Shell, which has participated intermittently in the SBTi process since 2019, confirmed that it withdrew after concluding the draft 'did not reflect the industry view in any substantive way.' The company maintained its commitment to achieving net zero by 2050 but argued that any credible standard must offer companies 'sufficient flexibility' and reflect what it called a 'realistic' societal pathway. Aker BP said its ability to influence the emerging standard had proven 'limited,' while emphasizing that its departure was 'in no way' a sign of diminished climate ambition. Enbridge declined to comment, according to the Financial Times. SBTi Pauses Work on Oil and Gas Standard Following these high-profile exits, the SBTi announced it had 'paused' work on its oil and gas standard, citing internal 'capacity considerations.' However, the organization rejected claims that this decision was driven by pressure from industry, telling the FT there was 'no basis in reality for these claims.' Separately, the SBTi has reportedly delayed and diluted planned guidance for financial institutions regarding their financing of fossil fuel projects. According to sources cited by the FT, the deadline for ending finance or insurance for companies pursuing new oil and gas production was quietly pushed back from 2025 to 2030 after David Kennedy, a former EY partner, took the helm as SBTi's CEO in March. Industry vs. Climate Standards: A Growing Divide The outcome underscores a fundamental fault line: The burning of fossil fuels remains the leading contributor to global warming, and scientists broadly agree that capping long-term temperature rises to 1.5°C is critical to avoiding catastrophic and irreversible damage. Yet the oil and gas sector remains wary of climate standards that would effectively mandate an abrupt halt to exploration, raising concerns about energy security, investor interests, and the feasibility of meeting future demand during the transition. One source involved in drafting both the oil and gas and financial sector standards expressed frustration at the delay, telling the Financial Times: 'The more we delay, the more cover we are providing to big oil.' For now, Shell and others continue to publicly state their commitment to achieving net zero by 2050, even as the frameworks meant to define what 'net zero' means in practice remain mired in controversy.
Bloomberg
22-07-2025
- Business
- Bloomberg
Top Energy Companies Exit Global Net Zero Standard-Setting Group
At least three large oil and gas companies have walked away from an initiative seeking to put the industry on a credible path toward net zero emissions. Shell Plc, Aker BP ASA and Enbridge Inc. have all left the expert advisory group of the Science Based Targets initiative, the leading global standard setter for corporate climate targets, the Financial Times reported on Tuesday. The retreat started late last year after the companies were told that a net zero emissions strategy accredited by SBTi would require them to stop developing new oil and gas fields, the newspaper said.
Time of India
22-07-2025
- Business
- Time of India
Global oil and gas emissions standard put on pause after Shell, others walk away
Shell and other leading energy groups have abandoned a six-year-long attempt to define a net zero emissions strategy after being told that such a standard would require them to stop developing new oil and gas fields, the Financial Times reported on Tuesday, citing documents seen by the newspaper. Shell, Norway's Aker BP and Canada's Enbridge have all quit the expert advisory group of Science-Based Targets initiative since late last year, the FT reported. The Science-Based Targets initiative, a leading assessor of company climate goals, confirmed it has paused development of the oil and gas standard due to "significant, resource-intensive development" it still required. "This is the sole reason behind our decision... we will return to Oil & Gas Standard development, with the precise timing to be determined as we finalise our forward work programme," a spokesperson for the group said. In March, the body had proposed new rules to better help companies set high-quality emissions-reduction plans. The companies quit the initiative as draft standards seen by the FT stated that the companies should not develop "new oil and gas fields" once they submitted a climate plan, or from the end of 2027, whichever was sooner. The initiative has "paused" work on the oil and gas standard citing "capacity considerations", but denied this was linked to the oil and gas industry departures, saying there was "no basis in reality for these claims," the FT report said. Shell said in a statement that it supports science-based methodologies and believes standards should reflect "realistic societal and economic changes" while allowing flexibility to reach net-zero goals. "In the absence of an industry-wide standard, Shell has used 1.5°C scenarios developed for the UN Intergovernmental Panel on Climate Change in setting its targets, which we believe demonstrates Paris alignment," a company spokesperson said. Shell told the FT that its expert had withdrawn after seeing a draft standard that "did not reflect the industry view in any substantive way," while Aker BP told the newspaper it had left the advisory panel after finding its "ability to influence" the standard "limited." Enbridge did not immediately respond to a Reuters request for comment, while Aker BP could not be immediately reached.
Business Recorder
22-07-2025
- Business
- Business Recorder
Global oil and gas emissions standard put on pause after Shell, others walk away, FT says
Shell and other leading energy groups have abandoned a six-year-long attempt to define a net zero emissions strategy after being told that such a standard would require them to stop developing new oil and gas fields, the Financial Times reported on Tuesday, citing documents seen by the newspaper. Shell, Norway's Aker BP and Canada's Enbridge have all quit the expert advisory group of Science-Based Targets initiative since late last year, the FT reported. The Science-Based Targets initiative, a leading assessor of company climate goals, confirmed it has paused development of the oil and gas standard due to 'significant, resource-intensive development' it still required. 'This is the sole reason behind our decision… we will return to Oil & Gas Standard development, with the precise timing to be determined as we finalise our forward work programme,' a spokesperson for the group said. Shell says it is not considering buying BP, UK rules ban bid for 6 months In March, the body had proposed new rules to better help companies set high-quality emissions-reduction plans. The companies quit the initiative as draft standards seen by the FT stated that the companies should not develop 'new oil and gas fields' once they submitted a climate plan, or from the end of 2027, whichever was sooner. The initiative has 'paused' work on the oil and gas standard citing 'capacity considerations', but denied this was linked to the oil and gas industry departures, saying there was 'no basis in reality for these claims,' the FT report said. Shell said in a statement that it supports science-based methodologies and believes standards should reflect 'realistic societal and economic changes' while allowing flexibility to reach net-zero goals. 'In the absence of an industry-wide standard, Shell has used 1.5°C scenarios developed for the UN Intergovernmental Panel on Climate Change in setting its targets, which we believe demonstrates Paris alignment,' a company spokesperson said. Shell told the FT that its expert had withdrawn after seeing a draft standard that 'did not reflect the industry view in any substantive way,' while Aker BP told the newspaper it had left the advisory panel after finding its 'ability to influence' the standard 'limited.' Enbridge did not immediately respond to a Reuters request for comment, while Aker BP could not be immediately reached.
Reuters
22-07-2025
- Business
- Reuters
Global oil and gas emissions standard put on pause after Shell, others walk away, FT says
July 22 (Reuters) - Shell (SHEL.L), opens new tab and other leading energy groups have abandoned a six-year-long attempt to define a net zero emissions strategy after being told that such a standard would require them to stop developing new oil and gas fields, the Financial Times reported on Tuesday. Shell, Norway's Aker BP ( opens new tab and Canada's Enbridge ( opens new tab have all quit the expert advisory group of Science-Based Targets initiative since late last year, the FT said. The Science-Based Targets initiative is a leading assessor of company climate goals. In March, the body had proposed new rules to better help companies set high-quality emissions-reduction plans. The companies quit the initiative as draft standards seen by the FT stated that the companies should not develop "new oil and gas fields" once they submitted a climate plan, or from the end of 2027, whichever was sooner. The initiative has now "paused" work on the oil and gas standard citing "capacity considerations", but denied this was linked to the oil and gas industry departures, saying there was "no basis in reality for these claims," the FT said. Shell told the FT that its expert had withdrawn after seeing a draft standard that "did not reflect the industry view in any substantive way," while Aker BP told the newspaper it had left the advisory panel after finding its "ability to influence" the standard "limited." Shell, Enbridge and the Science-Based Targets initiative did not immediately respond to Reuters requests for comment, while Aker BP could not be immediately reached. Reuters could not immediately verify the report.
