Major oil and gas companies have walked away from a global climate working group as it was preparing to implement standards cracking down on dirty energy expansion. Shell and other big energy companies have pulled out of an expert advisory group attached to the Science Based Targets initiative (SBTi), an organization that helps set climate standards for corporations, according to a late-July report from the Financial Times. The group was working to define a 'net zero' emissions strategy. The exits came after a draft of proposed guidelines was shared. The draft reportedly included a requirement that companies cease development of new oil and gas fields once they had submitted a climate plan to the SBTi, or the end of 2027, whichever came first. The draft also called for a significant reduction in dirty fuel production. Shell, Norway's Aker BP, and Canada's Enbridge all have reportedly left the group since late 2024. Afterward, the SBTi paused work on the oil and gas guidelines, citing 'capacity considerations.' It denied the move was linked to industry pressure. The Financial Times also reported that the SBTi recently pushed back a separate deadline for financial institutions regarding the ending of funding for new dirty energy projects, extending it from 2025 to 2030. The outlet noted the delay would give participating banks and asset managers five more years to invest in oil and gas. 'The more we delay, the more cover we are providing to big oil,' a person who worked on the standards told the Financial Times. Shell seemed to indicate, according to the outlet, that the draft standards were not sufficiently realistic or flexible. Separate statements from Aker BP and Enbridge said that the departures did not indicate their lack of investment in climate strategies. A worldwide transition to clean energy is essential to protect the planet's future. Investing in renewable power — such as solar and wind — can help reduce heat-trapping gases, slow rising global temperatures, improve air quality, and safeguard vital ecosystems. It can also benefit public health by lowering the risk of conditions linked to pollution and extreme heat. While individual choices matter, advocates generally agree that meaningful progress will also require coordinated global action. The energy companies' decisions to halt participation in work aimed at capping dirty energy emissions and boosting clean energy adoption could slow that progress. It's especially worrisome that the SBTi — which is partnered with the United Nations, the World Wildlife Fund, and other respected environmental organizations — could be delaying standard development following the corporations' exits. The SBTi is highly influential in large-scale climate planning. As the Financial Times reported, many high-profile companies — from Apple to Colgate to Pfizer — have consulted with the standard-setting body on their climate change strategies. If proposed standards are delayed or dropped due to corporate non-participation, international climate efforts may be jeopardized. Numerous lawsuits have targeted companies like Shell for misleading the public about the dangers of dirty energy. Shareholders, investors, and climate-conscious consumers are also demanding stricter standards and environmental transparency as the impacts of dirty fuel become more studied and more apparent. In some cases, this has led to a 'voluntary' shift to clean energy to retain customers and standing. Divestment campaigns have also successfully pressured institutions to pull billions in funding from dirty energy projects. Similarly, nonprofits exposing greenwashing and tracking corporate climate progress have helped influence action. Yet, it's clear that some companies are still delaying the clean energy transition. After the exits of those key corporations, the SBTi told its remaining advisory group members that it would 'deprioritize' work on the oil and gas standard. The SBTi previously said the standard was a 'top priority,' according to the Financial Times.

Oil giants turn heads after walking away from critical international effort: 'The more we delay, the more cover we are providing'

Major oil and gas companies including Shell, Aker BP, and Enbridge have withdrawn from a global climate working group under the Science Based Targets initiative (SBTi), which was developing standards to limit new oil and gas field development and reduce dirty fuel production. The draft guidelines proposed that companies cease new projects by the end of 2027 or upon submitting a climate plan, whichever came first. Following the withdrawals, the SBTi paused its work on the oil and gas standards, citing capacity issues and denying industry pressure as the cause. The organization also delayed a separate deadline for financial institutions to stop funding new dirty energy projects, extending it from 2025 to 2030. Industry leaders argue the standards were not realistic or flexible, while the SBTi maintains its influence in corporate climate planning and warns that delays could undermine global climate efforts.