Oil and gas companies in Europe directly targeted the coal industry on Monday and called upon the governments to decide on a global price on carbon emissions. These prices could have a huge impact on boost the market share from coal to natural gas.
A joint declaration was issued by six European oil and gas companies and was skeptically accepted by the United Nations. The United Nations will be the host of the negotiations to be held in Paris this December regarding devising a plan that will help curb emissions from fossil fuel. scientists blame fossil fuel emissions for soaring temperatures across the globe.
Six companies called for a decisive action at the negotiations in Paris, which will recognize the significant role that natural gas plays. These companies are Statoil, Royal Dutch Shell Plc, BG Group Plc, Total SA, BP Plc, and Eni S.p.A.
These companies argued that when natural gas is burnt to produce electricity, it generates only half the amount of carbon emissions as compared to coal. The willingness of oil and gas companies to accept a global price on carbon emissions signals the fact that there is a widespread attempt among firms to improve their image at the expense of coal.
This move comes after the oil and gas industry has made consistent attempts towards a divestment campaign, which urges investors to divest from companies dealing in fossil fuels owing to their growing carbon emissions. These companies have also been feeling the heat from policy makers in many nations who wish to put an end to production and consumption subsidies worth billions of dollars that are beneficial to the fossil fuel industry.