Energy Giants Exit Climate Initiative Over Restrictive Standards

Three major oil and gas companies (Shell, Aker BP, and Enbridge) have left the Science Based Targets initiative (SBTi) due to disagreements over the group's net zero emissions standards. SBTi requires companies to stop developing new oil and gas fields to achieve net zero emissions, which the companies deemed unrealistic. The development threatens to slow global efforts to limit warming to 1.5C. SBTi has delayed a deadline for financial institutions to halt financing for companies engaged in new oil and gas production.

Three major oil and gas companies—Shell Plc, Aker BP ASA, and Enbridge Inc.—have withdrawn from the Science Based Targets initiative (SBTi) due to disagreements over the group's net zero emissions standards. The decision marks the latest challenge to global efforts to limit warming to 1.5°C.

The SBTi, a leading global standard setter for corporate climate targets, requires companies to stop developing new oil and gas fields to achieve net zero emissions. However, Shell, Aker BP, and Enbridge deemed these requirements unrealistic and left the initiative's expert advisory group [1]. Shell's spokesperson stated that the company withdrew because the draft standard did not reflect the industry's view, while Aker BP cited its limited ability to influence the outcomes [1].

The departures follow a series of high-profile exits from climate-focused groups, including banks and asset managers. These moves coincide with increased attacks on climate strategies by the administration of US President Donald Trump, potentially slowing efforts to limit global warming [1].

In response to the exits, SBTi paused its work on the oil and gas standard, citing internal capacity considerations [1]. The organization denied that industry pressure influenced the decision. The SBTi also delayed a deadline for financial institutions to halt financing for companies engaged in new oil and gas production, with a new absolute cutoff set for 2030 [1].

Petroleum Development Oman (PDO), the largest producer of oil and gas in the Sultanate of Oman, is spearheading an ambitious transition toward a Net Zero future by 2050. PDO's strategic roadmap aligns with Oman Vision 2040 and global decarbonization goals, showcasing a series of integrated projects that merge energy production with significant emissions reduction [2].

In contrast, the development at SBTi highlights growing tensions between fossil fuel companies and evolving climate disclosure and accountability frameworks. The companies' departure underscores the need for a balanced approach that reflects both the industry's perspective and the urgency of climate action.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-22/top-energy-companies-exit-global-net-zero-standard-setting-group
[2] https://www.zawya.com/en/economy/gcc/pdo-leads-omans-energy-transition-with-breakthrough-net-zero-projects-k85g244j