Assessing National Oil Companies’ Transition Plans

National oil companies (NOCs) account for half of oil and gas production, 40% of investments in the sector and two thirds of the planet’s hydrocarbon reserves.

An assessment of 99 leading oil and gas companies, which includes 40 NOCs, shows that NOCs are expected to exceed international oil companies (IOCs) in their carbon budgets. Any chance of limiting global warming to 1.5°C and even well below 2°C therefore requires a better understanding of how NOCs function and what levers can be activated to support their decarbonisation.

This brief, developed with WBA, IISD and UCSB, focuses particularly on internationally exposed NOCs. Contrary to what is often perceived, like governments, financial actors can have an important impact on NOCs, however there is still a disconnect between financial actors and the need for NOCs to decarbonise.