In some countries national oil companies have the greatest capacity to deliver project. But can they become part of the solution to climate change? When does it make sense for state companies to shift toward renewable energy?
NRGI’s Latin America director Juan Luis Dammert spoke at the United Nations Global Roundtable on Extractive Industries about how developing countries could avoid the race to bottom in attracting investments and ensure the extractives sector contributes to sustainable development.
National oil companies are key players in the global oil and gas industry—they produce half of the world’s oil and gas, and invest 40 percent of capital into the sector. But policymakers and climate activists alike often overlook their role in global efforts to address climate change.
Research for the 2021 edition of NRGI's Resource Governance Index has begun. The index measures the governance of oil, gas and mining sectors in resource-producing countries and provides freely available public data to help inform evidence-based decision-making.
Both Algeria and Iraq were already in places of great transition and turmoil when confronted by the coronavirus pandemic. While both countries have taken some measures in response to the oil price drop and the spread of the coronavirus, questions remain.
It is critical to address the impacts of the much-needed low-carbon transition on the livelihood of the world’s millions of oil workers and their communities. Implementing a just transition for workers will not be easy, but it is imperative for governments in oil-exporting emerging economies to begin planning now.
The world’s determination to fight climate change and green the energy mix is a concern for large Middle Eastern oil exporters, which sit on massive proven hydrocarbon reserves. The risk of such assets becoming stranded and losing value is high, with significant consequences for these poorly diversified economies.