Chinese oil & gas major commits to global decarbonization initiative 

PetroChina, a subsidiary of state-owned China National Petroleum Corporation (CNPC), has joined the Oil and Gas Decarbonization Charter (OGDC), a pledge aiming to accelerate decarbonization in the oil and gas sector worldwide. 

The energy firm, accounting for 3.5% of global oil production, has joined 52 other OGDC signatories, representing around 40% of global oil production, as disclosed at the eighth Ministerial on Climate Action (MoCA) hosted in Wuhan, China July 22–23, 2024. 

Launched at COP28, the OGDC calls for the industry to achieve net zero by 2050, eliminate methane emissions and routine flaring by 2030, work towards industry best practices in emission reduction, and invest in renewables. 

Dr. Al Jaber, the COP28 President, stated that PetroChina joining the Charter marks a “significant moment for Chinese leadership” and “sends a powerful signal to global companies yet to sign up to do the right thing and choose the right side of history.” 

Jaber asked ministers to draw from the “spirit of solidarity” that was needed for launching the consensus to accelerate its implementation, calling on countries to submit nationally determined contributions (NDCs) that “cover everything from decarbonization to deforestation.” 

“All stakeholders that delivered the landmark UAE Consensus must come together to implement it and advance sustainable socio-economic development,” noted the COP28 President.  

The UAE Consensus, also launched at COP28, is a point of reference for global climate targets and sustainable development. It includes a commitment to transition away from all fossil fuels in energy systems, encourages signatories to set “ambitious” emission reduction targets in their nationally determined contributions, and offers a new goal of tripling renewables and doubling energy efficiency by 2030. 

“We are pushing every country to turn its NDC into a practical plan that transforms the UAE Consensus into facts on the ground. These plans should be comprehensive and balanced across mitigation, adaptation, and means of implementation,” said Jaber. 

The President highlighted the UAE Consensus’ goal of tripling renewable energy capacity this decade, pointing to the latest report by the International Renewable Energy Agency (IRENA) which found that the world needs to grow capacity by 16.4% annually through 2030.

Jaber underlined that every sector should prioritize climate resilience, urging industries to adopt strategies that future-proof their business models, put people first, and protect the planet. He believes the COP Presidencies Troika – the UAE, Azerbaijan, and Brazil – has a critical role to play in maintaining political momentum in this regard. 

Aside from committing to cutting emissions in theory, the Chinese player is doing it in practice as well by co-developing a liquefied natural gas (LNG) export terminal in Canada with Shell, Petronas, KOGAS, and Mitsubishi.  

The project is said to be designed with the lowest carbon intensity of any large-scale LNG export facility operating today, with 35% less emissions than the world’s best-performing facilities. Situated in Kitimat, British Columbia, the terminal is scheduled to start operation later this year.