The world’s oil and gas companies will undergo annual reviews by the International Energy Agency to assess progress made to reduce emissions and create clean energy.
IEA released a report on Sunday showing that oil and gas producers, including those owned by governments, spend on average 1% of their total capital expenditure outside oil and gas. The agency hopes to create a way to quantify what the companies are doing to reduce emissions, Axios reports.
IEA Executive Director Fatih Birol says the process will assure critics and “get companies a social license to operate so that they are part of the solution.”
It wasn’t immediately clear which specific companies IEA would review and how the process would work, but the report includes all international oil and gas companies and most big state-owned ones.
Some of the world’s biggest oil and gas companies are slowly beginning to invest in renewable energy and other technologies under pressure from the public and investors, including ExxonMobil, which in the past year has made investments in two carbon capture technologies.
Birol says companies should push for policies in governments that would help provide certainty around the transition to cleaner energy sources, which he and most other experts describe as inevitable. In the U.S., oil companies are slowly beginning to actively lobby for a price on carbon emissions, but it’s so far not moving the needle. Read the full story.