After a decade-long dry spell, Corporate America’s call for climate action is back.
Despite the Trump Administration’s continued denial, leading companies are finally giving climate change the attention it deserves and urging Congress to do the same.
Years from now, we’ll look back at May 2019 as a breakthrough moment, when business engagement in climate policy gathered strength and became an unstoppable movement. This month alone, companies across sectors including oil and gas, electric power, consumer goods and food have joined the CEO Climate Dialogue, invested in the Americans for Carbon Dividends initiative, and advocated on the Hill to put a price on carbon.
As Axios’ Amy Harder notes, “Several years-long trends are driving corporations to ask for government policy — but it’s not really about saving the planet. It’s about investor and legal pressure, falling prices for renewable energy, new bounties of cleaner-burning natural gas and growing public concern about a warming planet’s impacts.”
Whatever the reasons companies are stepping up to the plate on climate policy advocacy, pressure from investors is one trend that is here to stay.
Corporate America is setting – and meeting – increasingly ambitious climate and clean energy goals. But the hard reality is that individual corporate action, no matter how big, won’t solve this great climate crisis.
In order to avoid the worst impacts of climate change, we need public policies that harness the power of the whole economy to drive down emissions by putting prices and limits on climate pollution.
Businesses that are sincerely interested in protecting our health, economy and future from the ravages of climate change must join this national public policy discussion. We need companies to lead, not follow, Congress.
That’s why it’s big news that 13 major companies have now joined four nonprofit organizations, including Environmental Defense Fund, to form the core of a new effort to push for climate policy. The CEO Climate Dialogue initiative involves major food brands, powerful utilities, and one of the nation’s leading car companies. Our goal is to turn the power of the marketplace towards addressing this crisis. Read more
Oil and gas companies in the United States are the latest to add their voices to the broad set of stakeholders supporting federal regulation of methane emissions from the oil and natural gas sector. These companies have a major responsibility to reduce methane emissions, a key step in the energy transition. This week in Houston, at CERAWeek, Shell, ExxonMobil and BP took important steps to support nationwide direct methane regulation, with Shell urging the Environmental Protection Agency (EPA) to not deregulate methane emissions and to even tighten standards.
There is more opportunity than ever before to regulate and reduce emissions in ways that work for industry and the environment. As ExxonMobil wrote, federal methane regulation “helps build stakeholder confidence, and provides long-term certainty for industry planning and investment while achieving climate related goals.”
The federal regulation of methane emissions is an essential effort that builds on proven state regulatory models and positive efforts that dozens of companies are already practicing as part of sound business operations.
It’s time for more companies to speak up, because without nationwide methane regulation, industry is only as strong as its weakest link.
This blog was co-authored with Meghan Demeter, Program Analyst, EDF
With mounting concern about the state of the climate and increasing speculation about natural gas’ role in decarbonizing energy markets, oil and gas companies face growing scrutiny from the public and investors. Some companies are stepping up with pledges to reduce emissions of methane from their worldwide operations.
But there’s a catch. Read more
The credibility of recent industry methane commitments is under the microscope.
One year ago, many of the world’s top oil and gas companies publicly committed to support methane policies and regulations to reduce emissions from the global oil and gas industry. But today, serious doubts are emerging about whether the companies will keep their promise in the face of extreme regulatory rollbacks in the largest oil and gas producing nation in the world—the United States.
Four years ago, I stood in the centralized data command center of an American oil and gas company, watching a former colleague remotely adjust infrastructure at wellsites thousands of miles away because an algorithm detected a potential failure. This was the first time I personally witnessed the power of the “digital oilfield.”
Essentially, the “digital oilfield” refers to a transformative effort to bring solutions such as automation, predictive maintenance, and IoT technologies to the world’s oil and gas industry. Oilfield digitization has started to change the way decisions are made, operations are conducted, and facilities are managed across the entire oil and gas value chain. While early adopters are already employing automated and connected innovations to gain a competitive advantage, only a few are applying digitization technologies to address one of the industry’s biggest challenges: methane.
The day before the World Gas Conference – one of the energy industry’s largest – 10 companies competed for USD $20 million to fund solutions with the power to disrupt how methane is managed, measured, and reduced.
The money was provided by Oil and Gas Climate Investments, the billion-dollar investment fund tied to the Oil and Gas Climate Initiative (OGCI) – a consortium of 10 oil and gas companies sharing knowledge and resources to cut the greenhouse gas footprint of their industry.
For years, conversations at major oil and gas industry conferences focused on one thing: the shale revolution. Excitement about the surge in economical new supply of unconventionally produced oil and gas was palpable, as panelists spoke of the potential for shale to transform everything from the geopolitics of American energy supply to the price of hydrocarbons. With such an unexpected and seismic change, a supply side story carried the day, with a focus on “below ground” drivers of energy abundance.
But today, the shale revolution is simply the new normal and the conversation has changed. “Above ground” factors like increasing competition from renewables, greenhouse gas emissions, and license to operate will affect demand for natural gas for years. How industry confronts such challenges – both in the United States and internationally – will have a lot to do with industry’s longevity in putting resources to productive use in a changing world demanding cleaner energy
At last week’s World Gas Conference in Washington, DC, difficult questions swirled about whether industry has done enough to earn societal trust that natural gas has a constructive role to play in the transition to a low carbon economy. The biggest buzz of all surrounded one key issue: methane emissions, a core strategic challenge for the oil and gas industry.
I remember from experience that methane began as a niche issue years ago, mentioned by engineering and science teams, not CEOs. World Gas Conference 2018 left no doubt that those days are over, and that tackling methane must become part of business as usual. Here are four key takeaways. Read more
Pump jacks lined up in Oklahoma. (Credit: Kool Kats)
Six large European oil and gas companies recently announced a commitment to engage on climate policy, calling for a price on carbon. The now-emerging picture of their coordinated corporate talking points, however, leaves no doubt that promotion of natural gas is a core part of the group’s position.
Is this development a beneficial push to help the planet transition to a low carbon economy – or just another marketing campaign? The truth, so far, lies somewhere in between.
Here are the good, the bad and the ugly highlights of what we’ve learned over the past week and what it all means.
The good: Establishing a carbon price and cutting carbon dioxide emissions
Make no mistake about it: The world’s leading economies need to establish a price and limits on greenhouse gas emissions, and leadership from the private sector is instrumental in achieving that policy objective.
For large companies such as Shell, BP and Statoil to join forces and unequivocally state, as they now have, that a price on carbon should be a “key element” of climate policy frameworks is a refreshing boost to pre-Paris United Nations climate talks.
It is a potentially powerful validation that even some of the world’s largest corporate emitters see an upside to carbon pricing and will weigh in to make it a reality.
As to promoting natural gas a solution, it is well documented that in many cases natural gas will replace coal for power generation – a shift already underway in the United States and partly responsible for driving down carbon dioxide (CO2) emissions. Read more