Paving a Credible Investment Pathway to Net Zero for Oil and Gas

There is little doubt that oil and gas firms face an existential threat from the energy transition.

In one of its net zero scenarios, the IEA—long viewed as an ally to energy incumbents—forecasts that fossil fuels will only account for 20% of the world’s total energy supply in 2050, down from 80% in 2020. Despite their own public rhetoric, investor-owned oil and gas companies are fully cognizant of the inevitability of a carbon-constrained world.

This contribution to public consultation on investment treaties and climate change evaluates existing debates around oil and gas transition plans. Firms are moving forward with climate transition plans out of a combination of financial interest, shareholder pressure, and self-survival to ensure a continued role in regulating the energy industry.