UAE Oil Giant Adnoc Sets Tougher Climate Targets Before COP28

2023-07-31 17:21

The biggest oil producer in the United Arab Emirates is setting itself more ambitious emissions-reduction targets as the

The biggest oil producer in the United Arab Emirates is setting itself more ambitious emissions-reduction targets as the country prepares to host the COP28 climate summit later this year.

Abu Dhabi National Oil Co. accelerated its target to reach net zero emissions to 2045, from its initial plan for 2050, according to a statement. The government-owned company also pledged to eliminate methane discharges by the end of this decade.

The national capital Abu Dhabi pumps most of the oil in the UAE, the third-largest producer in OPEC, and is investing billions more to raise production capacity. The country has faced criticism over its role as the host of COP28, the world’s premier climate event, due to its status as a major hydrocarbon producer. Adnoc’s expansion plans could make it harder for the company to achieve the climate targets.

Adnoc’s plan covers so-called Scope 1 and Scope 2 emissions, which measure the amount of carbon dioxide that comes directly from the company’s own operations and from energy it uses to run its business. The targets don’t cover Scope 3 emissions, which count carbon that comes from customers using the oil company’s products.

The UAE’s nomination of Sultan Al Jaber as president of COP28 is seen by many as clashing with his other role as chief executive of Adnoc. Al Jaber is also chairman of the government-owned renewable energy company Masdar and the country’s climate envoy, among other roles.

Also read: A Kingdom Built on Oil Now Controls the World’s Climate Progress

Al Jaber this month presented the UAE’s COP28 plans at a summit in Brussels, laying out goals for the almost 200 countries attending the summit in Dubai in November and December. The aims include creating a fully functional fund to compensate poor countries hit by climate change, while tripling renewables and doubling hydrogen production by 2030 globally.

Separately, the UAE already published upgraded climate commitments to the UN that will target slightly steeper cuts than its 2021 undertaking. The effort was labeled by nonprofit Climate Action Tracker as “insufficient” to reach the global climate goal of keeping warming below 1.5C.

The new plan set a target to cut emissions by 40% by 2030 from a business-as-usual level, compared with an earlier plan for a 31% reduction. The country also said investment in renewables projects and other clean energy initiatives will reach $54 billion over the next seven years.

--With assistance from Akshat Rathi.