đź•’ Last updated on July 23, 2025
A big shake-up has hit the world of climate action. Several major oil and gas companies have left a global expert group that was working to set rules for cutting emissions. This group was part of the Science Based Targets initiative (SBTi), which helps businesses create plans to reduce their carbon emissions and fight climate change.
Major Oil Companies Quit Climate Group
Aker BP in Norway, Enbridge in Canada, and Shell are among the corporations that have resigned. They were part of a team that was working for six years to decide what “net zero” really means for oil and gas companies. “Net zero” is when a company balances the greenhouse gases it produces by reducing them or by removing an equal amount from the atmosphere.
However, a draft paper recently created a great deal of stress. It said that any oil and gas company wanting approval for its climate plan must stop developing new oil and gas fields. The rule was clear: no new projects once a company submits its climate plan or by the end of 2027—whichever comes first.
This proposed rule upset many energy firms. Shell said the draft did not include the industry’s views. It was believed that the rules were too strict and not realistic. Aker BP also said it felt it had little say in the process and chose to walk away. Enbridge did not comment on its decision.
Shortly after these departures, the SBTi put a halt to its efforts to establish a standard for gas and oil. It claimed the pause was due to “capacity issues” and not because of the companies’ departure. However, messages shared with the Financial Times showed that staff had told others that work on the standard would now be “deprioritized.”
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Climate Rules Cause Deep Divide
The heart of the problem is simple. Scientists say we must stop burning fossil fuels to avoid more damage from global warming. Carbon dioxide is released into the atmosphere when coal, oil, and gas are burned, warming the earth. Limiting the global temperature rise to 1.5°C is key to preventing more deadly weather events and damage to nature.
The SBTi has been trying to write fair rules that companies must follow to prove they are doing their part. Its approval is seen as a gold star for climate responsibility. Businesses that have obtained this approval include AstraZeneca and Apple.
But when it comes to oil and gas, the path gets harder. The SBTi draft said oil and gas companies must stop growing their fossil fuel production. That includes drilling new wells or starting new gas fields. It also called for big cuts in the amount of oil and gas these companies produce.
The proposal went too far for some in the energy industry. They argue that the world still needs oil and gas for the time being and that the standard should offer more flexibility. Shell, for example, has said it still aims to reach net zero emissions by 2050.
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But last year, it made its short-term climate goals weaker and removed a target for 2035 altogether.
Aker BP said that even though it left the expert group, it remains committed to climate action. It simply felt that its voice was not being heard enough. The departure of these major companies has put the whole project at risk.
Rules for Banks Also Watered Down
The SBTi’s efforts extended beyond oil and gas firms. It was also preparing guidance for banks, insurers, and asset managers. These financial institutions support fossil fuel companies through loans, insurance, and investments.
Originally, the SBTi planned to tell these financial groups to stop supporting new oil and gas projects soon. But now, that rule has been delayed. The deadline has been pushed back to 2030 instead of an earlier date.
This change happened after a new CEO joined the SBTi in March. People working on the rules said the decision was supported by the new leadership. It gave financial institutions five more years to keep funding fossil fuel projects.
Some experts who worked on both sets of rules—those for oil companies and those for banks—have raised alarms. One insider said, “The more we delay, the more cover we are providing to big oil.”
Despite the delays and industry exits, the SBTi says it followed strict rules to develop these climate plans. It consulted people from different groups, including financial experts, scientists, and nonprofit organizations.
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However, with the departure of top energy firms and the postponement of tough rules, critics say momentum has been lost. What was once a top priority for the SBTi has now been put on hold.
For now, the global effort to define what real climate action looks like for the oil and gas sector remains uncertain. The path forward is unclear, and the challenge of balancing industry concerns with the urgency of climate science continues to grow.