Net-Zero Asset Owner Alliance outlines new guidance for oil and gas investments while calling on companies, policymakers and investors to align with 1.5°C pathways

ByUnited Nations Environment Programme

Net-Zero Asset Owner Alliance outlines new guidance for oil and gas investments while calling on companies, policymakers and investors to align with 1.5°C pathways

The Net-Zero Asset Owner Alliance outlines new guidance for members regarding their approach to the oil and gas sector, calling on consumers and suppliers of oil and gas to set Scope 1, 2, and 3 greenhouse gas emission reduction targets while aligning their operations activities, including capital expenditure, with established 1.5°C pathways.

The Position in the Oil and Gas Sector underscores the Alliance’s recognition that unabated climate change poses significant economic and investment risks. Members are committed to mitigating these systemic risks on behalf of their clients and beneficiaries and, as such, should consider how economies can transition away from dependency on activities that contribute to climate change, including the combustion of oil and gas.

The Alliance’s view on this essential transition away from oil and gas dependency is guided by the Intergovernmental Panel on Climate Change’s (IPCC’s) 1.5°C no or limited overshoot scenarios, as well as on the One Earth Climate Model (OECM) and the International Energy Agency (IEA) Net Zero by 2050 Roadmap (NZE 2050).

The numerous challenges of transitioning to a low-carbon economy are best mitigated by a position that considers all available options for concurrently reducing the supply and demand of oil and gas and overall economic systems. Thus, the Alliance’s Position in the Oil and Gas Sector is expressed in the form of expectations for producers, consumers, policymakers, and investors.