A report stated on Monday that the overall of the oil and gas sector total investments in clean energy projects is less than one percent.
This has risen serious concerns regarding the un-achieved target set in the 2015 Paris accord to limit global temperature, condemning the world to a cascade of costly droughts, super storms, floods and wildfires as greenhouse gasses warm the atmosphere.
“A commitment by oil and gas companies to provide clean fuels to the world’s consumers is critical to the prospects for reducing emissions,” the International Energy Agency (IEA) said in a summary of its report on the role the oil and gas industry can play in a transition towards cleaner energy.
The agency, which advises industrialized nations on energy issues, found “few signs of a major change in company investment spending.”
It added: “So far, investment by oil and gas companies outside their core business areas has been less than 1 percent of total capital expenditure.”
However, major companies dedicate around five percent of their total investment to projects mostly into solar and wind projects.
“A much more significant change in overall capital allocation would be required to accelerate energy transitions,” said the IEA.
It found that “the industry can do much more to respond to the threat of climate change.”
“There are ample, cost-effective opportunities to bring down the emissions intensity” of producing and delivering oil and gas, such as reducing methane leaks, said the IEA.
“It is also vital for companies to step up investment in low-carbon hydrogen, bio-methane and advanced bio-fuels, as these can deliver the energy system benefits of hydrocarbons without net carbon emissions,” it said.
Investment into these low-carbon fuels needs to rapidly rise to around 15 percent for a rapid transition of the energy sector.