The International Energy Agency (IEA) has called for the oil and gas industry to step up for climate action.
The IEA has released a new report which has detailed how important the oil and gas industry are in efforts to shape the future of sustainable development.
As oil and gas companies face increasing demands to clarify the implications of energy transitions for their operations and business models, the new IEA report highlights the most important recommendations for a net zero economy.
The Oil and Gas Industry in Energy Transitions report highlights that as the landscape of the oil and gas industry is diverse, there will not be one straightforward solution, but instead, a variety of approaches depending on each company's circumstances.
Dr. Faith Birol said: "No energy company will be unaffected by clean energy transitions. Every part of the industry needs to consider how to respond. Doing nothing is simply not an option."
"The first immediate task for all parts of the industry is reducing the environmental footprint of their own operations. As of today, around 15% of global energy-related greenhouse gas emissions come from the process of getting oil and gas out of the ground and to consumers. A large part of these emissions can be brought down relatively quickly and easily."
The report says there must be a step up in the investment of clean fuels, such as hydrogen, biomethane and advanced biofuels, that can deliver the energy system benefits of oil and gas without net carbon emissions.
Within 10 years, these low-carbon fuels would need to account for around 15% of overall investment in fuel supply if the world is to get on course to tackle climate change.
The IEA say that without the adoption of these low-carbon fuels, transitions become much harder and more expensive.