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Exxon Mobil Corp. and Saudi Arabia’s Aramco, the world’s largest private and state-sector oil companies, led a pledge by 50 oil and gas producers at the COP28 climate summit to cut emissions from their own operations.
The deal is controversial given none of the companies are agreeing to reduce oil and gas production. But they are planning to stem releases of methane, one of the most dangerous greenhouse gases, to near zero by 2030 and stop routine flaring of natural gas.
The initiative was spearheaded by COP28 President Sultan Al Jaber, the chief executive officer of the Abu Dhabi National Oil Co., who’s invested political capital bringing the oil and gas industry into the climate fight. “We must do all we can to decarbonize the energy system we have today,” he told delegates.
The pact was the centerpiece of a day that saw a deluge of other announcements, from countries vowing to boost renewable energy to a plan to tackle pollution by heavy industry. The US pledged $3 billion in climate aid to poorer nations while the European Union said it would invest €2.3 billion ($2.5 billion) in the green transition overseas. The UAE is contributing $100 million to the methane-reduction effort.