Oil majors pledge $150M to World Bank methane fund
At the COP28 climate event in Dubai, a significant new initiative was launched to combat methane emissions in the oil sector, particularly within developing countries. The Global Flaring and Methane Reduction Partnership, backed by the World Bank, has established a $255 million fund aimed at reducing methane leaks, a potent greenhouse gas.
Key industry players including BP (NYSE:BP), Eni, Equinor, Occidental Petroleum Corp (NYSE:OXY)., Shell (LON:SHEL) Plc., and TotalEnergies (EPA:TTEF) SE have each pledged $25 million to the initiative. The United Arab Emirates has made a notable contribution of $100 million to lead the country donations.
While many oil majors are rallying behind this cause, Chevron Corp (NYSE:CVX) has taken a different approach. The company is directing its efforts towards internal carbon reduction projects and has decided against joining the Oil and Gas Decarbonization Charter. This charter targets near-zero methane emissions by decade’s end. Chevron has also chosen not to contribute financially to the World Bank’s new initiative but is investing $2 billion in its own projects aimed at curbing emissions.
Exxon Mobil Corp (NYSE:XOM)., on the other hand, while supportive of the goals set forth by the partnership, is in talks to provide technical expertise rather than direct funding. The company is considering offering technical assistance for emission control, specializing in methane detection and abatement training. This support aligns with the eligibility criteria for World Bank funding which requires companies to commit to less than 0.2% methane intensity, eliminate routine flaring by 2030, and maintain transparent emissions reporting.
