Oil companies launch $1bn fund to tackle climate change

The Oil and Gas Climate Initiative (OGCI), which includes ten companies that account for over a fifth of global oil and gas production and over 10% of energy, launched a 10-year $1bn fund to invest in technology that lowers emissions.

The Paris climate change agreement came into force after two decades of negotiations with a commitment from 55 countries, representing 55% of global emissions, to cap the rise in temperatures.

The initiative said: “The creation of OGCI Climate Investments shows our collective determination to deliver technology on a large-scale that will create a step change to help tackle the climate challenge.

“We are personally committed to ensuring that by working with others our companies play a key role in reducing the emissions of greenhouse gases, while still providing the energy the world needs.”

The investment will fund projects that aim to reduce emissions by fast-tracking carbon capture use and storage, methane emissions reduction, and energy efficiencies in transport and industry

The member companies includes some oil heavyweights comprising of BP, CNPC, eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Royal Dutch Shell, Statoil and Total.

The investment in low-emissions technology also comes as the price of oil has weakened due to low demand and as OPEC member countries wrangle over a cut in production to ease supply.

At 1237 GMT, Brent crude fell 1.28% to $45.76 a barrel and West Texas Intermediate was down 0.97% to $44.23.