The International Energy Agency (IEA) has called for the oil and gas industry to abandon the belief that carbon capture technology can solve climate change while increasing investment in clean energy. In a report released ahead of the United Nations Climate Change Conference in Dubai next week, IEA Executive Director Fatih Birol stressed the need for the industry to take a more proactive role in meeting global energy needs and climate goals.

According to the IEA report, just 1% of global clean energy investment has come from oil and gas companies. Birol highlighted the industry's hesitation to embrace clean energy solutions and urged them to face the "uncomfortable truth" that transitioning to a net-zero carbon emissions economy by 2050 would require scaling back oil and gas operations, rather than expanding them.

Carbon capture technology, which captures carbon dioxide from industrial processes and stores it underground, has been touted as a potential solution to combatting emissions. However, the report warns against excessive reliance on this technology, noting that it should not be used as a means to maintain the status quo. The IEA estimates that an astonishing 32 billion tons of carbon would need to be captured by 2050 to limit global warming to 1.5 degrees Celsius, requiring massive amounts of electricity and annual investments totaling $3.5 trillion.

To meet the goal of limiting climate change to 1.5 degrees Celsius, the IEA states that the oil and gas industry would need to allocate 50% of its capital expenditures to clean energy projects by 2030. As of 2022, only 2.5% of the industry's capital spending had been directed towards clean energy. The report urges industry players, including U.S. oil majors like Exxon Mobil and Chevron, to shift their focus away from fossil fuels and towards renewable energy sources such as solar and wind.

Exxon Mobil and Chevron, however, have continued to invest billions in carbon capture technology and hydrogen. While European majors Shell and BP have taken strides in the renewables sector, Exxon and Chevron have recently closed major deals in the fossil fuel industry. Exxon's acquisition of Pioneer Resources for nearly $60 billion and Chevron purchasing Hess for $53 billion highlight their ongoing commitment to traditional energy sources.

The IEA's call for the oil and gas industry to invest in clean energy and move away from carbon capture technology comes at a crucial time for the sector. As the world grapples with the urgent need to address climate change and transition to a sustainable energy landscape, industry players will face increasing pressure to align their strategies with global climate objectives. The upcoming United Nations Climate Change Conference in Dubai will provide a platform for discussions and negotiations on the way forward.

In order to avert catastrophic climate change and the environmental, economic, and social consequences that accompany it, the oil and gas industry must confront the reality of limited resources and the imperative for a clean energy future. The challenge lies in finding a sustainable path forward that balances the global energy demand while protecting the planet and securing a prosperous future for all.