LONDON (Reuters) – The best oil and gas companies have jointly spent about 1 percent of their 2018 budgets on…
LONDON (Reuters) – The best oil and gas companies have jointly spent about 1 percent of their 2018 budgets on clean energy, but investments from Europe’s giants stretched a lot over their American and Asian rivals, revealed a study.
Crude oil is dispensed in a bottle in this illustration on June 1
, 2017. REUTERS / Thomas White / Illustration
Companies like Royal Dutch Shell, Total and BP have in recent years accelerated the costs of wind power and solar energy as well as battery technology , seeking a greater role in global efforts to reduce carbon dioxide emissions to combat global warming.
Investors in recent years have increased the pressure on fossil fuel boards, including Exxon Mobil, the world’s largest public utility oil company, to reduce emissions, spend more on carbon dioxide and increase information about climate change.
However, the Transatlantic divide remains broad, according to CDP, a climate-focused research provider working with major institutional investors with $ 87 trillion in assets.
“With less domestic pressure to diversify, US companies have not recycled renewable energy in the same way as their European comrades,” said CDP in a report.
Europe’s oil sizes account for about 70 percent of the sector’s renewable capacity and almost the entire capacity under development today, the CDP study found.
Shell is leading the package of future plans to spend $ 1-2 billion a year on clean energy technology with a total budget of 25 to 30 billion dollars. Norway’s Equinor plans to spend 15-20 percent of its budget on renewable energy sources in 2030.
Since 2010, Total has invested the most in carbon dioxide, about 4.3 percent of its budget, according to the study.
As a whole, the world’s 24 largest listed companies spent 1.3 percent of the total $ 260 billion budget on low-carbon energy in 2018.
It is still almost double the 0.68 percent of the investments that the group had made during the period 2010-2017.
(For graphics on “Oil majors capex” clicks tmsnrs/2Phem1A)
Investments accelerated in the aftermath of the landmark UN backed 2015 Paris Climate Agreement where governments agreed to reduce emissions to zero at the end of the century to limit it global warming to below 2 degrees Celsius (35.6 ° F).
Since 2016, 148 offers have been made in alternative technologies for energy and carbon capture, utilization and storage (CCUS).
Energy companies are growing increasingly towards producing gas, the least polluting fossil fuel they say will play an important role in reducing emissions by shifting dirty coal and meeting the increasing demand for electricity.
The Oil and Gas Climate Initiative (OGCI), which brings together 13 of the world’s leading oil and gas companies, promised earlier this year to reduce emissions of a powerful greenhouse gas by fifteen years 2025.
(For a graphical “Oil Company’s carbon dioxide investments “clicks tmsnrtrsrs / 2PdABFA)
But critics say the sector is not doing enough.
“This percentage is pale compared to the sum of money. Big Oil spends blocked climate initiatives and regulations and invests in fossil fuel projects that do not fit in less than 2 degrees Celsius,” said Jeanne Martin of ShareAction.
Last week, voters in Washington state rejected a voting initiative to create the first coal tax in the US after an oil industry campaign claimed it would hurt the economy.
“Investors must strengthen their commitment and tell fossil fuel companies to adapt their business models to the goals of the Paris agreement,” Martin said.
Reporting by Ron Bousso, Editing Louise Heavens
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