An effective price for carbon emissions would incentivize the supply and use of lower carbon options, enabling the world to move faster to sustainable energy while meeting growing demand along the way. In Norway, Equinor already operates successfully with the highest carbon tax in the world—around USD 65 per tonne of CO2. Equinor has shown that it’s possible for oil and gas production to prosper in a world of high carbon price.
Coal has historically played an essential role in helping countries to develop economically, but concern for the climate means the world must cut emissions. Moving from coal to gas can cut emissions by 50% while helping to meet growing energy demand. In the long term the world must also move on from natural gas, but it will remain essential for decades—our goal is to produce and use it in the most efficient and effective way.
Equinor is already an industry leader in carbon intensity, and we have taken significant steps to mature our reporting on climate-related risk. We disclose our governance, risk management, strategy and metrics related to climate change. Since 2015 we have stress-tested our project portfolio against the International Energy Agency 450 scenario (broadly aligned with a 2oC framework) and publish the results in out annual report. We have received recognition for our performance and disclosures from the CDP and the Institutional Investors Group on Climate Change, among others.*
We welcome new initiatives to improve and drive convergence of standards and practices related to business-related climate risk disclosures, such as the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD). We believe that the disclosures made in our Annual Report and Sustainability Report are already well aligned with the main principles outlined in the recommendations of the TCFD.
We will continue to engage with investors and other stakeholders in order to further improve our disclosures of material climate-related risks and opportunities. We will also take into consideration the recommendations of the TCFD and other relevant developments.