As climate summit nears end, fossil fuels — and the oilpatch — loom large over deal proposals

Oilpatch gets both warm welcome and hostile reception at COP28

Image | COP28

Caption: A demonstration at COP28 in Dubai on Dec. 5, 2023. Throughout the two-week climate summit, environmental activists have unleashed a torrent of criticism toward the oilpatch. (Kyle Bakx/CBC)

As the curtains are set to close on COP28, the oil and gas industry remains firmly in the crosshairs as nations deliberate whether an agreement can be reached to phase out fossil fuels.
Throughout the two-week climate summit, environmental activists have unleashed a torrent of criticism toward the oilpatch, not only because the industry is a major contributor to global warming, but also because of the sector's large presence at COP28.
There are at least a few thousand oil and gas representatives attending the climate summit in Dubai, according to one estimate.
"This COP28 has been quite captured by a significant number of fossil fuel lobbyists," said Dean Bhebhe, an environmental campaigner with a group called Don't Gas Africa.
"Just recently we held the largest global day of action, pushing back to end fossil fuels fast, fair and forever."

Image | COP28 Climate Summit

Caption: Activists protest against fossil fuels at the COP28 UN Climate Summit on Sunday. (Rafiq Maqbool/The Associated Press)

The conference is being held in OPEC territory and, for the first time, the oil cartel has had its own pavilion space at the climate conference. Sultan Ahmed al-Jaber, who is leading the talks on behalf of the U.A.E., is also chief executive of the country's national oil company, ADNOC.
Throughout the climate summit, environmental activists have held demonstrations, which often target the oil and gas industry with signs saying "End fossil fuels," among many others.
WATCH | Canadian financial institutions should invest elsewhere, minister says:

Media Video | Financial institutions should stop oil and gas support 'sooner rather than later': Guilbeault

Caption: With COP28 entering its home stretch on Monday, Environment Minister Steven Guilbeault said negotiations on the phaseout of fossil fuels at the annual UN climate talks signals that Canadian financial institutions should move their investments and stop support of oil and gas 'sooner rather than later.' Members of the Beyond Oil and Gas Alliance (BOGA) from Denmark and Colombia also called for a stronger phaseout of oil and gas production.

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The criticism isn't lost on representatives from the Canadian oil and gas sector who are attending the conference, although they have no role in the actual climate negotiations.
"Clearly, we hear that voice. It's saying, we shouldn't be here," said Kendall Dilling, president of the Pathways Alliance, which represents the major oilsands producers in Alberta.
"The combustion of the products that we produce creates the lion's share of the emissions," he said. "We have to come and be a huge part of the solution."
It's not just environmental campaigners, but leading UN officials too, who are wanting the sector's fate to be sealed.

Image | COP28 Climate Summit

Caption: Lights shine from Al Wasl Dome at Expo City at the COP28 UN Climate Summit on Sunday. (Peter Dejong/The Associated Press)

"We must accelerate a just, equitable transition to renewables. The science is clear: The 1.5-degree limit is only possible if we ultimately stop burning all fossil fuels," said UN Secretary General Antonio Guterres in a speech during the opening days of the summit
"Not reduce. Not abate. Phase out — with a clear timeframe."
LISTEN | Activists voice concerns about growing influence of oil and gas industry lobbyists:

Media Audio | The Current : Activists clash with oil industry at COP28

Caption: Climate activists have voiced concerns about the growing influence of oil and gas industry lobbyists at COP 28. As the climate conference wraps up in Dubai, we hear what progress has been made, and where the sticking points have been.

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Despite the criticism facing the oilpatch, COP28 organizers have rolled out the red carpet for everyone to be a part of the summit. To tackle climate change, the message from organizers is it will take a co-ordinated effort.
This is Dilling's first time attending a UN climate conference, and he says he wishes the industry had been at these summits a decade ago.
WATCH | Ottawa aims to cut methane gas emissions:

Media Video | The National : Canada unveils oil and gas methane reduction plan

Caption: The Government of Canada unveiled its plan to reduce methane gas emissions from the oil and gas sector at the COP28 climate change summit. Methane is a significantly more potent greenhouse gas and contributor to global warming than carbon dioxide.

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"I'm really proud of the industry and where we're at today and our commitment to move forward, but if we could have started that 10 years ago, of course it would have given us that much further running room to tackle this very, very important challenge," he said.
Representatives from nearly 200 countries are weighing whether consensus can be reached on main priorities at COP28, including a desire to triple the amount of renewable energy and double energy efficiency around the globe by 2030.

Image | Kendall Dilling

Caption: Canadian oil and gas industry officials are at COP28 to collaborate with others, discuss new technology, share ideas, and learn from others, said Kendall Dilling, president of the Pathways Alliance. (Kyle Bakx/CBC)

There's also a push to phase out fossil fuels by 2050, which would be historic, experts say, since never before has an agreement from a UN climate conference referenced fossil fuels.
"Being an oil and gas executive here is interesting, but I have found that all of the conversations that I've been in have been very welcoming," said Rhona DelFrari, chief sustainability officer at Calgary-based Cenovus Energy, who is attending her third UN climate conference.
WATCH | Canada's 'most ambitious' plan:

Media Video | Guilbeault wants to lead on methane cap in oil and gas

Caption: Steven Guilbeault, federal environment minister, says he believes Canada has the world’s “most ambitious” goal to cap methane emissions in the oil and gas industry.

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A proposal to completely phase out fossil fuels by 2050 likely isn't realistic, said DelFrari, because oil is used to create so many products such as plastics, clothing and life jackets.
"People often only think about oil being used for gasoline in your vehicle. but it has many more uses, so there is always going to be a need for it," she said, pointing out that Cenovus is the third-largest asphalt producer in North America.

Image | oilsands protest

Caption: An anti-oilsands demonstration by environmental activists at COP28 in Dubai. (Kyle Bakx/CBC)

A preliminary agreement released on Monday was disappointing for some environmental advocates because the phrasing wasn't as strong as they had hoped. The text calls upon countries to take actions that "could" include "reducing both consumption and production of fossil fuels."
That type of language will only mean a small step forward by countries to tackle global warming, not a historic leap, said Catherine Abreu, founder and executive director of the advocacy group Destination Zero and a member of Canada's Net-Zero Advisory Body.
"What we're seeing instead is this kind of watered down menu of compromises," she said.
Abreu said she hopes the final agreement on Tuesday is more assertive in phasing out fossil fuels by 2050.
Pledges made so far at the summit by countries, such as tripling nuclear energy and curbing methane emissions, will make a difference in tackling climate change, but only by a third of what is needed to stay on track to limit global warming to the crucial 1.5 degree Celsius threshold above temperatures before industrialization, the International Energy Agency said on Sunday in a report(external link).
Currently, the world is consuming more oil now than ever before and commodity experts forecast global demand to continue increasing for at least the next few years. Canadian oil production is expected to increase in 2024.
The federal government has made several announcements during COP28, including stricter methane rules for the oil and gas industry and a cap on the sector's total emissions.