Oil and gas net-zero standard paused after Shell and others exit
Effort to define net-zero targets stalls amid industry backlash over proposed restrictions
A major global effort to establish a standard for net-zero emissions in the oil and gas sector has been put on hold after several leading energy companies, including Shell, Aker BP, and Enbridge, withdrew from the initiative. The pause was confirmed by the Science-Based Targets initiative (SBTi), the organization leading the framework, which cited the need for further development work.
The decision follows internal tensions over draft rules that would have required participating companies to cease development of new oil and gas fields after submitting a climate plan—or by the end of 2027, whichever came first. According to the Financial Times, which reviewed documents related to the deliberations, this proposed restriction prompted a wave of industry departures from the initiative’s expert advisory group beginning in late 2023.
Shell told the FT that its representative had resigned after a draft version of the standard failed to reflect the industry’s perspective “in any substantive way.” Similarly, Norway-based Aker BP cited limited influence on the process as its reason for stepping away. Canada’s Enbridge also exited the group, as reported by the FT.
Despite these high-profile exits, the SBTi denied that the pause was a result of industry pressure. In a statement, a spokesperson for the group emphasized that the sole reason for the suspension was the "significant, resource-intensive development" the standard still required. “We will return to Oil & Gas Standard development, with the precise timing to be determined as we finalise our forward work programme,” the spokesperson added.
Shell, in a public statement, reiterated its support for science-based methodologies but stressed the need for standards to be aligned with “realistic societal and economic changes” and to allow flexibility in achieving net-zero goals.
In March, the SBTi had introduced draft rules to support more robust climate strategies in the oil and gas sector, part of its broader mission to ensure that corporate climate goals are science-aligned and credible. However, the pause raises new questions about the feasibility of setting unified climate targets in an industry where commercial and environmental priorities remain deeply divided.
