Exploring low-emissions pathways

Transcription

1 Exporing ow-emissions pathways Advancing the Paris Puzze THE GLOBAL OIL AND GAS INDUSTRY ASSOCIATION FOR ENVIRONMENTAL AND SOCIAL ISSUES

2 2 EXPLORING LOW-EMISSIONS PATHWAYS Executive summary IPIECA beieves that addressing cimate change risks is a chaenge for our generation and those to come. We aso beieve that access to affordabe, reiabe energy is essentia for the growth of strong economies, sustained improvements in the quaity of ife, and the eradication of poverty. We further beieve that it is possibe to address cimate change risks whie aso meeting growing goba energy demand and supporting economic deveopment. Meeting the chaenge of cimate change in the context of sustainabe deveopment requires actions from a parts of society. Exporing ow-emissions pathways buids on IPIECA s 2015 Paris Puzze and provides our perspective on the key common eements and enabers of future pathways. IPIECA wecomes the Paris Agreement as an important step in addressing the risks of cimate change. Significant poicy action, technoogy deveopment and business response wi be needed beyond the current Nationay Determined Contributions to achieve its aims. Meeting the aims of the Paris Agreement impies a transformation of the energy system over the course of this century. Throughout this transition, oi and gas wi continue to be an important part of the broad energy mix needed to deiver affordabe, reiabe and modern energy products and services. There are many possibe pathways to reach a ow-emissions future, most of which share three common eements: improving efficiency and saving energy; reducing emissions from power generation; and depoying aternative ow-emission options in end-use sectors. Carbon capture and storage (CCS) is a key technoogy to support this transition. Governments, business and industry, investors, consumers and civi society wi need to coaborate cosey to enabe the transition to a ow-emissions future. The oi and gas industry provides more than haf of the word s energy and is an essentia partner in sustainabe deveopment. It is using its skis, capabiities and resources to pay a key roe in heping to transform energy systems. IPIECA A rights reserved. No part of this pubication may be reproduced, stored in a retrieva system, or transmitted in any form or by any means, eectronic, mechanica, photocopying, recording or otherwise, without the prior consent of IPIECA. To hep address this critica issue, IPIECA wi continue to expore soutions and engage stakehoders, incuding UN bodies.

3 3 EXPLORING LOW-EMISSIONS PATHWAYS The Paris Agreement In December 2015, Parties to the United Nations Framework Convention on Cimate Change (UNFCCC) convened in Paris for the 21st Conference of Parties (COP21). The Paris conference resuted in a goba agreement that, for the first time, committed a Parties to take action on cimate change within the context of sustainabe deveopment. The aim of the Paris Agreement is to strengthen the goba response to the threat of cimate change by hoding the increase in goba average temperature to we beow 2 C above pre-industria eves and to pursue efforts to imit the temperature increase to 1.5 C above pre-industria eves ; incuding by increasing the abiity to adapt to the adverse impacts of cimate change and foster cimate resiience ; and by making finance fows consistent with a pathway towards ow greenhouse gas emissions and cimateresiient deveopment. Each country has pedged to estabish and periodicay review Nationay Determined Contributions (NDCs) with the view to achieving these aims. (See aso the box on net-zero emissions on page 4.) The Paris Puzze: The pathway to a ow-emissions future: Addressing cimate change in the context of sustainabe deveopment CURRENT NATIONALLY DETERMINED CONTRIBUTIONS ARE A FIRST STEP The current NDCs focus on the short term, to 2025 or Actions by nations in the near term on these NDCs wi be the significant first steps in moving society towards a ow-emissions path. However, if a the current NDCs are fuy impemented, the aggregate effects wi fa we short of deivering the ong-term aims of the Paris Agreement. 1 Whie some NDC submissions target ow emissions as an end point, many countries have not yet set out comprehensive pathways to get there. Recognizing the need for greater effort, each country has agreed to review the ambition of its NDCs at five-year intervas. MEETING THE UN SUSTAINABLE DEVELOPMENT GOALS IN THE CONTEXT OF CLIMATE CHANGE In 2015, the UN aso adopted the 2030 Agenda for Sustainabe Deveopment, with its 17 Sustainabe Deveopment Goas (SDGs). The goas and targets are designed to stimuate action by governments, business and wider society over the next 15 years in areas of critica importance. Among the 17 SDGs, two goas are particuary important to ow-emissions pathways: Goa 7, to ensure access to affordabe, reiabe, sustainabe and modern energy for a; and Goa 13, to take urgent action to combat cimate change and its impacts. 1 This assessment has been estabished by various independent anaysts, incuding the Secretariat of the United Nations Framework Convention on Cimate Change (UNFCCC).

4 4 EXPLORING LOW-EMISSIONS PATHWAYS The eve of energy necessary to provide the broad range of services that woud constitute a good quaity of ife is estimated to be approximatey 100 gigajoues per person per year. Factoring in energy efficiency and conservation improvements, to meet the SDGs in a word of around 10 biion peope, impies an increase in primary energy demand from around 575 exajoues today to 1000 exajoues in As the word moves towards fufiing the SDGs, this need for energy means that oi and gas wi continue to pay an important roe for decades to come. Meeting the word s demand for energy is the fundamenta reason why member companies of IPIECA are continuing to deveop new hydrocarbon opportunities. In the medium term, the Internationa Energy Agency (IEA) projects that by 2040 oi and gas wi suppy 50% of the word s energy in its New Poicy Scenario and approximatey 45% in its 450 Scenario. 2 The 17 Sustainabe Deveopment Goas of the UN As the word moves towards fufiing the UN Sustainabe Deveopment Goas, oi and gas wi continue to pay an important roe for decades to come. NET-ZERO EMISSIONS The Paris Agreement cas on the Parties to aim to reach goba peaking of greenhouse gas (GHG) emissions as soon as possibe and subsequenty to undertake rapid reductions to achieve a baance between anthropogenic emissions by sources and removas by sinks of greenhouse gases in the second haf of this century. Achieving a baance does not mean a word of zero emissions, but a word in which remaining GHG emissions are offset by a drawdown from the atmosphere (negative emissions) to reach an equiibrium (aso referred to as carbon neutraity or net-zero ). Such a drawdown might be achieved through reforestation or new technoogies such as bioenergy with carbon capture and storage (BECCS). An exampe of net-zero emissions with carbon captured in biomass and stored geoogicay 3 This diagram shows how a baance of anthropogenic emissions might be achieved in one conceptua scenario. The configuration of the energy system across fossi energy and biomass resuts in net-zero CO 2 emissions. NB: whie zero emissions technoogies woud pay a roe in this scenario, they do not affect the emissions baance and are therefore not refected in the graph. 2 OECD/IEA. Word Energy Outook IEA Pubishing. 3 She Internationa BV (2016). A better ife with a heathy panet; pathways to net-zero emissions.

5 5 EXPLORING LOW-EMISSIONS PATHWAYS TRANSITION TO A LOW-EMISSIONS FUTURE WILL REQUIRE ONGOING CHANGES IN THE ENERGY SYSTEM OVER THE COURSE OF THIS CENTURY Today, oi, natura gas and coa provide more than 80% of goba primary energy. About a third of this amount is used to generate most of the word s eectricity, aong with nucear (7%), hydro (8%) and renewabes (3%). Oi products currenty provide energy for most of the goba transportation system. Natura gas is mainy used for power generation (40% of goba gas demand 4 ), residentia heating, and as the fue for many industria processes. Aong with oi, natura gas pays a major roe as feedstock for the chemica industry. Coa is heaviy used for power generation (more than 60% of goba coa demand 5 ) and industria processes, incuding meta ore conversion and cement manufacture. A ow-emissions future wi ook significanty different from the current energy system and require fundamenta changes in how energy is consumed. These changes wi take decades to accompish and may incude trade-offs, for exampe, the eectrification of vehices woud require new infrastructure. A ow-emissions future wi ook significanty different from the current energy system and require fundamenta changes in how energy is consumed. THE CURRENT ENERGY SYSTEM Substitution by non-carbon fues has been minima for transportation and industria uses. Eectricity accounts for ony 18% of fina consumption. Oi and natura gas make up 96% of transportation fues. Amost two-thirds of industry utiizes fossi fues. Source: Adapted from IHS Energy using IEA data (OECD/IEA Word Energy Outook 2015, IEA Pubishing) 4 OECD/IEA. Word Energy Outook 2015 (p. 584). IEA Pubishing. 5 Ibid.

6 6 EXPLORING LOW-EMISSIONS PATHWAYS Mutipe pathways to a ow-emissions future There is no singe pathway to a owemissions future. Finding these pathways is a task for many actors from a sectors of society over the short, medium and ong term. 6 Governmenta agencies, consutants, energy companies, NGOs and academic institutions have pubished numerous different scenarios that provide projections of GHG emissions and associated energy demand. There are many variabes that can affect the pace and nature of change sought in the energy system, and thus the possibe pathways to a ow-emissions future. Uncertainties exist in cimate poicy (e.g. the timing and scope of poicies to achieve NDCs); technoogy deveopment (e.g. the commerciaization of arge-scae batteries and CCS); cimate response (e.g. cimate modes); and finance (e.g. the avaiabiity, ocation and cost of finance). IPIECA has examined a number of these different pathways and noted the assumptions and uncertainties that make them different. We have aso identified three eements that are common to most of the projected pathways. THE THREE COMMON ELEMENTS FOR AN ENERGY SYSTEM TRANSFORMATION IMPROVING EFFICIENCY AND SAVING ENERGY The most cost-effective method of reducing GHG emissions is to save energy. With potentia improvements in production and end-use efficiency, couped with energy conservation, forecasted energy demand in 2040 may be roughy 12% ess than business as usua. 7 To maximize energy-saving opportunities, barriers to uptake wi need to be addressed, incuding through increasing the information avaiabe to consumers and aigning the motivation of consumers and suppiers to save energy. Whie efforts to increase efficiency and reduce consumption are criticay important, overa these efforts ony sow the growth of GHG emissions they do not stop it. REDUCING EMISSIONS FROM POWER GENERATION The power sector accounts for about haf of goba energy-reated GHG emissions. Mutipe approaches and technoogies can be used to reduce the GHG intensity of this sector. In the near term, one of the most cost-effective and impactfu steps that society can take is to switch from coa to natura gas. This step coud cut emissions in haf for every unit of eectricity generated. Near-zero emissions options incude renewabes and nucear power. Longer term, the depoyment of gas and biomass-based power generation with CCS woud enabe near-zero or negative emissions eectricity. Reducing the GHG intensity of the power sector coud enabe the eectrification of parts of the transport, residentia, commercia and industria sectors to decrease their GHG intensity. REDUCING EMISSIONS FROM REMAINING END-USE SECTORS Aternatives to eectrification incude hydrogen, biofues, industria CCS, and bioenergy with CCS. Whie these technoogies continue to be deveoped, additiona technica breakthroughs wi be needed to achieve cost-effective depoyment at the scae needed to transform the energy system. Some areas of the economy, such as aviation, have specific energy-characteristic needs that wi be ikey to require such aternatives. (See The search for ow-emissions aternatives on page 7.) 6 Recognizing that the terms short, medium and ong term have different meanings for different readers, and that no definition shoud be artificiay precise, for the purposes of this paper we define short term as meaning within the next 10 to 15 years; medium term as between the next 10 to 35 years; and ong term as beyond the year OECD/IEA. Word Energy Outook IEA Pubishing.

7 7 EXPLORING LOW-EMISSIONS PATHWAYS THE SEARCH FOR LOW-EMISSIONS ALTERNATIVES A variety of processes and services have specific needs for energy density, transportabiity and scaabiity, which is why they run on fossi fues today. For the same reasons there is great uncertainty as to whether these coud run on direct or stored eectricity by the end of this century, and they wi therefore require aternative soutions. Commercia shipping currenty utiizes hydrocarbon fues, benefiting from their energy density. Whie some arge miitary vesses have their own nucear reactors, it is unikey that aternative fue options wi be avaiabe for the ong-hau commercia shipping feet. Aviation requires kerosene, with stored eectricity an unikey aternative. Even given advances in battery technoogy, the fue-to-weight ratio of eectrochemica (battery) storage makes the use of eectricity in aviation a distant option. A more ikey aternative might be bio-based jet fues, which are becoming more avaiabe. Heavy goods transport and argescae construction equipment woud ikey use iquefied natura gas or possiby biofue, or ese depend on the pace and scope of battery deveopment. Heavy industry requires considerabe energy input, such as from furnaces powered by coa and natura gas. These reach the very high temperatures necessary for processes such as chemica conversion, gassmaking, the conversion of imestone to cement, and the refining of ores to metas. Economy of scae is aso critica: deivering arge amounts of energy into a reativey sma space is important. In the case of the metaurgica industries, carbon (usuay from coa) is aso needed as a reducing agent to convert the ore to a refined meta. CCS IS A KEY TECHNOLOGY CCS wi ikey be key to the fina two eements necessary for a transformation of the energy system. Without arge-scae commercia depoyment of this technoogy, reaizing a ow-emissions pathway wi be much more difficut and costy. The Intergovernmenta Pane on Cimate Change (IPCC) Fifth Assessment Report attaches considerabe importance to CCS depoyment because without it, costs of achieving atmospheric CO2 stabiization eves woud be much higher.8 CCS woud enabe ow-carbon fues and eectricity to be used in transport, homes and the industria sector. Carbon dioxide-emitting industria processes such as hydrogen production and cement and stee manufacture wi amost certainy continue throughout this century. In addition, continued dispersed emissions of GHGs are inescapabe in some sectors, notaby in agricuture. In the onger term, to address dispersed emissions that cannot otherwise be controed, direct air capture of CO2 with CCS or the use of biomass as an energy source with CCS provide options to offset 8 such emissions. It may take some time, however, for these technoogies to be cost-effectivey proven at scae. Large-scae CCS is a reaity today, even though depoyment remains imited. Depoyment of CCS on a scae that makes a materia contribution to reducing CO2 emissions requires addressing current barriers, incuding cost, compexity aong the vaue chain, reguatory and poicy uncertainty, pubic acceptance, arge-scae storage sites, and ong-term iabiity issues. However, the key barrier for CCS is the deveopment of poicies to incentivize and underpin its depoyment, creating a eve paying fied with other technoogies. Large-scae CCS is a reaity today, even though depoyment remains imited. The IPCC defines these stabiization eves as being between parts per miion CO2 equivaent.

8 8 EXPLORING LOW-EMISSIONS PATHWAYS MOVING TO A LOW-EMISSIONS WORLD IS CHALLENGING BUT POSSIBLE Moving towards a ow-emissions word wi require significant changes across a sectors and by a parties. The time it takes to scae up new industries and the difficuties in reaching a parts of the economy mean that this transformation is ikey to occur over the course of the century. In the near term, the focus is ikey to be on efficiency improvements and the depoyment of ow-ghg technoogy that is aready commerciay avaiabe, such as natura gas combined-cyce generation in the power sector. In addition, research and deveopment of new technoogies can faciitate future transformation. In the ong term, significant transformation wi be required in the way that heavy transport, industry and buidings are fueed since it is currenty very difficut and costy to substitute other sources for fossi fues in such appications. This chaenge impies other energy deivery mechanisms, ones that woud meet the needs for high temperatures in industria processes and energy density in transport, and that woud potentiay offer a soution to energy storage. Fossi fues with CCS, and hydrogen and biofues wi be required for these parts of the economy. 9 Each of these technoogies wi need to overcome existing barriers to achieve the necessary enormous increases in scae. Carbon is present in the suppy chain of everything we use, or in the products themseves from pastic water bottes to the cars we drive so arge-scae sources of zero-emissions carbon wi be needed. Beyond energy, the wider economy, incuding consumption patterns, wi aso require significant changes. Improved recycing rates, more efficient and cosedoop suppy chains in many industries, and new approaches to urban panning and infrastructure are just some exampes. Whatever the means, achieving a owemissions future wi require a transformation of the current economy, which wi need to be as economicay efficient as possibe. Even with such a transformation, oi and gas wi continue to pay an important roe in our energy future. WHY ENERGY TRANSITIONS TAKE TIME With transportation accounting for about 20% of energy use and passenger vehices about 10%, eectric vehices and hybrid eectric vehices (HEVs) are potentiay significant for reducing emissions from ightduty vehices. But a transition from gasoine and diese engines wi take time for three main reasons. First, it takes time for consumers to become famiiar with any new technoogy. Second, there are higher costs associated with new engine technoogies and refueing infrastructure. Third, the turnover of the feet takes a ong time. Carbon is present in everything we use from pastic water bottes to the cars we drive so arge-scae sources of zero-emissions carbon wi be needed. The reative success of HEVs in the USA over more than a decade provides a reference case. The spread of HEVs into the ight-duty vehice feet has taken many years, even with favourabe market conditions and subsidies, in part due to the average age of vehices in the USA which now stands at 11.4 years. With strong assumptions on vehice ight-weighting, downsizing and aternative powertrains, hybrid engines wi hod around 20%, and petroeum-based engines around 80%, of the market share in 2030, according to an MIT study 10. Source: Heywood and MacKenzie, editors (2015) Hydrogen, coud be made by eectroysis of water using zero-emissions power, or from steam-methane-reforming of natura gas with geoogica storage of the resuting CO John Heywood and Don MacKenzie, editors (2015). On the Road toward 2050: Potentia for Substantia Reductions in Light-Duty Vehice Energy Use and Greenhouse Gas Emissions. Massachusetts Institute of Technoogy, Soan Automotive Laboratory, Engineering Systems Division. November 2015, pp

9 9 EXPLORING LOW-EMISSIONS PATHWAYS Critica enabers to reach a ow-emissions word Working towards a ow-emissions future requires the support of many enabing factors, especiay greater coaboration, effective poicy environments and adequate finance. COLLABORATION Whie the Paris Agreement is based on a concept of goba participation and coaboration, governments aone cannot provide a of the soutions. Pubic and private entities at the nationa, subnationa, regiona, oca and city eves wi a need to engage with each other, academia, civi society and private industry. The oi and gas industry has a ong history of working with partners of different sizes and nationaities, and with other private companies, NGOs and governments to reduce and mitigate risk. EFFECTIVE POLICY An effective poicy environment woud enabe markets to drive the technoogy innovation, deveopment and depoyment, as we as the infrastructure necessary to transform the energy system at east cost. Effective poicy instruments, supporting both short- and ong-term action, are those that: encourage goba participation; et markets drive the seection of soutions at owest cost whie supporting the deveopment of precommercia, ow GHG-emissions technoogies; recognize the ong-term nature of addressing the risks of cimate change; provide ong-term signas and market certainty, but are fexibe in response to the atest science and technoogy; are transparent to a stakehoders whie minimizing compexity and administrative costs; and address both mitigation and adaptation. EFFICIENCY OF MARKET- ORIENTED SOLUTIONS Countries are increasingy eecting to impement various designs of marketbased systems and crediting mechanisms to pace a price on carbon and to support their efforts in reducing emissions, incuding regiona and internationa cooperation. Countries at different stages of deveopment and with different states of energy independence wi decide how best to design cimate and energy poicy to pursue sustainabe deveopment. Artice 6 of the Paris Agreement recognizes the concept of vountary cooperative approaches, incuding market-based and non-market based mechanisms. Success in moving towards a owemissions future wi depend on how effective governments are at creating a poicy andscape that uses market forces to enabe ow-ghg innovation and depoyment. Market-based approaches (such as carbon taxes, emissions trading systems, and tradabe permits or standards) can generay be designed to be more economicay-efficient poicy options than most industry-specific reguations, technoogy mandates or non-tradabe performance standards. 11 For those choosing market-based approaches, which coud have many different designs, the most effective wi be those that: appy to a GHG emissions and provide a transparent price signa; appy the costs of GHG emissions to the emitter to incentivize action; prevent or minimize carbon eakage; provide for inkages with other systems; return revenue generated from the system back to the economy in a nondistortionary fashion that encourages economic growth and imits regressive income effects; and provide for accurate and cost-effective GHG emissions measurement, verification and reporting. Systems based on these principes wi minimize the overa cost to society by aowing markets to determine the most cost-effective soutions. FINANCE The Paris Agreement provides for mechanisms for financia transfers between nations to accompish the Agreement s ong-term goas. Changes to the energy system in ine with a ow-emissions pathway and increasing demand wi require massive shifts in investment fows to change the energy system. In the energy sector, significant investments wi be needed over the coming decades to buid new ow-emissions infrastructure and to repace ageing existing infrastructure. Under its New Poicy Scenario, the IEA estimates that $68 triion of investment wi be needed in the energy sector between 2015 and 2040 to meet anticipated demand. 11 Rausch, S. and Karpus, V. J. (2014). Markets versus Reguation: The Efficiency and Distributiona Impacts of US Cimate Poicy Proposas. In: Energy Journa 35(SI1):

10 10 EXPLORING LOW-EMISSIONS PATHWAYS The oi and gas industry is an essentia partner Achieving the ong-term aims of the Paris Agreement wi require wordwide action among governments, business and civi society. It wi aso require the private sector to appy its creativity and innovation to address the word s most urgent societa chaenges. The oi and gas industry pays an important roe in providing the energy that is essentia for the growth of strong economies. It is working to be part of the soution, heping to ensure these benefits both for today and for future generations, whie supporting efforts to reduce emissions. REDUCING EMISSIONS The oi and gas industry is taking action on reducing GHG emissions from its operations, and has been for many years. An ongoing focus on energy efficiency has resuted in improvements and technoogica innovations in finding and producing oi and gas with attendant energy savings. Natura gas faces some potentia chaenges, incuding the impact of methane emissions. The industry has aso been taking action to reduce methane emissions and gas faring. According to the Word Bank, sateite data show that faring of associated gas has been reduced wordwide by amost 20% from 2005 to Oi and gas companies are taking independent action to mitigate emissions, as we as participating in coaborative initiatives and vountary industry groups, incuding the Word Bank Goba Gas Faring Reduction Partnership, the Goba Methane Initiative, and the Cimate and Cean Air Coaition Oi and Gas Methane Partnership. HELPING CONSUMERS REDUCE EMISSIONS Natura gas, the ceanest-burning fossi fue, is increasingy accessibe, affordabe, abundant and fexibe. It has a critica roe to pay in an energysystem transformation that woud offer a secure and diverse energy mix. In power generation, combined-cyce gas turbines generate around haf the GHG emissions of coa-fired power stations. They aso have a significanty ower impact on air quaity and emit much ess nitrogen oxide and suphur dioxide. Natura gas production has been expanding gobay, heping to sow the rise in GHG emissions through the dispacement of higher GHG-emitting fues. Natura gas can aso pay a roe in providing back-up to the intermittency of renewabes when soar and wind are unabe to generate power due to ack of sunight and wind. The industry works extensivey with motor vehice manufacturers to create products that hep increase engine performance. These efforts incude participating in vehice engine research and design to produce gasoine and diese formuations that increase modern engine efficiency whie owering emissions. They aso incude supporting partnerships such as the Goba Fue Economy Initiative, which IPIECA engages with through membership in the UN Environment Programme Partnership for Cean Fues and Vehices. Oi and gas companies are aso producing new advanced ubricants that reduce engine friction and increase fue economy. Heavy-duty vehices (HDVs) and shipping are two areas that are unikey to be eectrified in the near term. Liquefied natura gas (LNG) is now being used for HDVs and ships, resuting in ower GHG emissions whie aso reducing other poutants. Many IPIECA members support the 12 The Word Bank. Goba Gas Faring Reduction Partnership (GGFR)

11 11 EXPLORING LOW-EMISSIONS PATHWAYS IPIECA s work on cimate IPIECA is a unique organization, representing the oi and gas industry on environmenta and socia issues. With our membership consisting of a diverse group of internationa, independent and nationa oi and gas companies, we represent their consensus view on cimate change. advancement of soar and wind power and aso conduct fundamenta research to deveop new soutions, such as advanced biofues and the use of hydrogen as an energy carrier. Investments are being made in owcarbon businesses, incuding in the photovotaic industry, the batterystorage industry, advanced biofues (notaby bio-based jet fues), and in energy consutancy and energy efficiency services for customers. DEVELOPING AND DEPLOYING CCS For arge-scae, cost-effective mitigation and stabiization of atmospheric CO 2, CCS is a critica technoogy. The oi and gas industry is currenty working to deveop CCS technoogies and projects, as we as to address barriers and expore opportunities to enabe its uptake. Of the 15 arge-scae CCS projects in operation today, 11 are based on oi and gas activities. Whie such progress may be commendabe, it is ceary not enough. The IEA points out that CCS technoogies are vita to decarbonizing the power suppy and industry, 13 and concudes that nationa eve attention is needed to support the widespread adoption of CCS. ENGAGING ON CLIMATE POLICY Buiding baanced energy and cimate poicy is chaenging, and IPIECA recognizes that no one has a of the answers. As economies around the word continue to deveop, oi and gas wi pay an important roe in meeting the growing demand for energy. Meeting the chaenge of owemissions pathways whie providing adequate, affordabe suppies of reiabe energy wi require financia investments, skied peope, technica innovation, and responsibe stewardship from poicymakers, energy producers and consumers. We are committed to constructive engagement in the deveopment of such poicy. 13 Internationa Energy Agency (2015). IEA GHG Information Paper: 2015-IP16; the IEA Position on CCS. IPIECA s roe is not to obby on poicy or to define targets or minimum standards, but to: be an enaber of good practice, thus raising the performance of members and the wider industry; make fact-based information avaiabe gobay to hep industry and stakehoders make appropriate decisions; provide a forum to bridge regiona differences and increase industry consensus through buiding understanding and a common anguage; be a constructive partner in the discussion and resoution of cimate issues; and buid reationships and expore partnerships with key stakehoders incuding UN bodies. IPIECA and its members have been engaging in UN processes on cimate change for more than 20 years.

12 A CNOOC LIMITED COMPANY IPIECA is the goba oi and gas industry association for environmenta and socia issues. It deveops, shares and promotes good practices and knowedge to hep the industry improve its environmenta and socia performance, and is the industry s principa channe of communication with the United Nations. Through its member-ed working groups and executive eadership, IPIECA brings together the coective expertise of oi and gas companies and associations. Its unique position within the industry enabes its members to respond effectivey to key environmenta and socia issues. COMPANY MEMBERS ASSOCIATION MEMBERS List of photographs Cover, eft: power pant using CCS technoogy (Bernhard Cassen/Aamy Stock Photo); Cover, top centre: eectric car recharging (imagebroker/aamy Stock Photo) Cover, centre: gas storage tank (Kodda/Shutterstock) Cover, top right: renewabe energy technoogies (Geniusksy/Shutterstock) Page 3: soar panes in a rura andscape (Derek Meijer/Aamy Stock Photo) Page 7: CCS faciity (epa european pressphoto agency b.v./aamy Stock Photo) Page 10, eft: cogeneration pant (Guentermanaus/Shutterstock) Page 10, centre: natura gas storage tank (Muratart/Shutterstock) Page 10, right: soar pane instaation (Franco Lucato/Shutterstock) Page 11, eft: engineer at the Ketzin experimenta CCS faciity, Germany (dpa picture aiance archive/ Aamy Stock Photo) Page 11, right: UN Cimate Change Conference, 2015 (Drop of Light/Shutterstock) 14th Foor, City Tower 40 Basingha Street London EC2V 5DE United Kingdom Teephone: +44 (0) Facsimie: +44 (0) E-mai: info@ipieca.org