Global Carbon Reduction Policies for the Energy Transition in the Oil and Gas Industry
The world requires an energy transition. Its dependency on heavily polluting fossil fuels has a severe impact on the environment, and it is imperative that the world moves to more sustainable and cleaner sources of energy. The oil and gas (O&G) industry is one of the primary sources of greenhouse gas emissions globally; its carbon footprint is estimated to be 7% of the total emissions produced by human activity. Governments around the world are taking steps to reduce the carbon footprint of O&G companies by passing new regulations and setting ambitious carbon reduction targets. The energy transition is being propelled by the implementation of government policies, adoption and integration of new technologies, and expectations of consumers. Carbon reduction policies that promote investment in and subsidize emission mitigation technologies have driven innovation to ensure a more sustainable and environmentally friendly industry."O&G companies need to be cognizant of the energy transition that is underway and take active steps to be participants in the journey to net-zero emissions. Governments are providing various incentives, including grants, subsidies, and reduced indirect taxes, to encourage the adoption of technologies and solutions that reduce the carbon footprint of the industry. Organizations can look to these incentives to drive innovation and quicken the pace of their transformation — change is demanded and expected not only by governments but also by conscious consumers and employees who expect socially responsible actions from the companies they engage," says Rakesh Patni, associate research director, IDC Asia/Pacific Energy Insights.
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