PetroChina joins the world’s 2050 net zero pledge to slash oil and gas industry emissions

China’s largest oil and gas producer joins more than 50 other fossil fuel companies that signed the pledge last December, committing to net-zero operations by 2050. They plan to end routine flaring by 2030 and reach near-zero upstream methane emissions, to keep global warming in check to prevent adverse impact of climate change.

PetroChina’s announcement “signifies the growing momentum towards industry decarbonisation and further demonstrates the important influence of Chinese oil and gas enterprises in advancing low-carbon solutions”, he added.

PetroChina and the other OGDC signatories together represent more than 42 per cent of global oil production, compared with 40 per cent last year, according to the statement.

The company contributed about 50 per cent and 60 per cent of China’s domestic oil and gas production, respectively, according to data from the company.

Oil and gas operations currently account for about 15 per cent of total energy-related emissions globally, the equivalent of 5.1 billion tonnes of greenhouse gas emissions, according to the International Energy Agency (IEA). China is the world’s largest greenhouse gases emitter, accounting for 35 per cent of the global total carbon dioxide emissions in 2023, IEA data showed.

For the global energy sector to achieve net zero by 2050, the industry’s emissions need to fall by 60 per cent by the end of 2030, according to the IEA. The industry’s emissions intensity has to fall by 50 per cent, coupled with reductions in oil and gas consumption, it added.

The oil and gas industry is also a significant source of methane emissions. According to the World Bank, venting, leakage and flaring by the sector are currently estimated to be responsible for roughly 25 per cent of global anthropogenic methane emissions.

“As a signatory to the Oil & Gas Decarbonisation Charter, we will actively promote green and low-carbon practices, contributing the wisdom and strength of PetroChina to the global green and low-carbon transition,” said Huang Yongzhang, president of PetroChina.

Under China’s goal of achieving net-zero emissions by 2060, PetroChina has looked to transform itself into an integrated energy company covering oil, gas, thermal energy, electricity and hydrogen, by developing wind and solar energy projects in regions such as Xinjiang and Qinghai. It has also invested in carbon capture, utilisation, and storage demonstration projects and green hydrogen production.