Major oil and gas firms Shell, Aker BP, and Enbridge have withdrawn from the Science Based Targets initiative’s (SBTi) expert advisory group.
The companies made the move after SBTi proposed that, as part of meeting net-zero criteria, companies should stop developing new oil and gas fields. Shell and Aker BP cited worries about the practical feasibility of the proposed standards and about how industry perspectives were incorporated into the guidance.
The departures underscore the broader difficulties facing net-zero climate efforts. Such initiatives are navigating complex technical, commercial and political landscapes, including growing political pushback and changes to funding that affect how aggressive targets can be implemented.
In a related development, SBTi has delayed the deadline requiring financial institutions to stop financing new fossil-fuel projects, extending the cutoff to 2030. The postponement reflects the challenges of aligning financial practices worldwide with rapidly evolving climate rules and the differing capacities of institutions to meet near-term restrictions.
Analysts say these developments highlight a tension between ambitious climate goals and the practical realities of energy supply, investment cycles and regulatory environments. Energy companies argue they need predictable, phased pathways that consider operational constraints and global demand, while many climate advocates push for faster transitions to reduce emissions consistent with limiting global temperature rise.
The exit of prominent industry members from SBTi’s advisory group may prompt both the initiative and companies to reassess how standards are developed, communicated and implemented. Observers expect a continued debate about the pace and mechanisms of phasing out new fossil-fuel development, with attention on ensuring transparent processes and meaningful industry engagement without diluting climate science-based objectives.
As the dialogue progresses, stakeholders from industry, finance and civil society will likely continue negotiating timelines, definitions and compliance mechanisms. The outcome will influence corporate strategies, investor decisions and policymakers shaping energy and climate policy over the coming decade.