Latest News by Industry
By Shubhangi Mathur, 6:32 PM ET
Chevron Corp committed to triple its investments to reduce carbon emissions footprint by 2028. They will spend to $10 billion to help reach their target.
The oil company, though, said that it was yet not ready to commit to net-zero emissions target by 2050.
Chevron said a total of $3 billion will be used for carbon capture and offsets. $2 billion will be used for greenhouse gas reduction. The final $3 billion will be used for renewable fuels. The remaining $2 billion will be invested in hydrogen energy.
Governments around the world have been putting pressure on oil producers to sharply cut greenhouse gas emissions by 2050 to fight against climate change.
However, the company said it is not ready to commit to net-zero targets. Chief Executive Michael Wirth told investors on Tuesday that the company does not want to be in a position in which we lay out ambitions that we don't believe are realistic and deliverable.
He added: The board is looking to see, how do you deliver a strategy that meets the needs of shareholders today and the expectations of shareholders for the future? He believes that not many investors support the strategy used by European oil companies to invest in less-profitable solar and wind power.
European oil companies have decided to avoid fossil fuels and invest highly in renewable to implement 2050 emission targets.
Wirth claimed the net-zero goal will be reassessed later this year with the company’s climate report.
U.S. oil producers including Chevron, Exxon Mobil Corp and Occidental Petroleum aim to reduce carbon emissions per unit of output.
Chevron kept unchanged its plan of reducing greenhouse gas intension by 35% through 2028 from 2016 levels from its oil and gas output.
(With inputs from Reuters)