Major Oil Companies Contribute to Methane Reduction Fund, Chevron and Exxon Mobil Opt Out

According to Yahoo News, six major oil companies have each contributed $25 million to a grant fund designed to help state-owned rivals reduce methane emissions, but Chevron Corp. and Exxon Mobil Corp. have not joined the initiative. The Global Flaring and Methane Reduction Partnership, managed by the World Bank, has an initial budget of $255 million to assist developing countries and their oil companies in curbing leaks of the potent greenhouse gas. The program was announced at the COP28 climate summit in Dubai and acknowledges that while large US oil companies have been working to reduce methane emissions for years, many national oil companies are just beginning. The United Arab Emirates, which is hosting COP28, has provided $100 million to the fund, while the US has contributed $2 million, Germany $1.5 million, and Norway $1 million. However, some oil giants were hesitant to finance a fund that could be seen as providing cash donations to global competitors. Chevron supports the initiative's goals but is currently focusing on funding methane reductions in its own portfolio as part of its $2 billion investment in lower-carbon abatement projects. Chevron was also absent from the 50-member Oil and Gas Decarbonization Charter announced on Saturday, which commits companies to reducing methane emissions to near zero and ending natural gas flaring by the end of the decade. Exxon joined the Decarbonization Charter but has not yet provided funding to the World Bank grant fund. The company may offer technical support and methane-abatement training as part of the initiative. To access funding from the program, companies must commit to reducing methane intensity to below 0.2%, ending routine natural gas flaring by 2030, and measuring and reporting emissions.