Climate Policy Engagement Analysis
Climate Policy Engagement Overview: GALP engages on climate change policy in the EU and demonstrates a mix of positive and oppositional positions. The company’s top-line messaging is supportive of ambitious action on climate change. However, its engagement on the energy transition appears only partly supportive: while it supports an eventual transition away from fossil fuels, it advocates for continuing thermal energy pathways that rely on maintaining a role for oil, fossil gas, biofuels and green hydrogen in the energy mix, and thus appears less supportive of rapid and widespread electrification.
Top-line Messaging on Climate Policy: GALP’s engagement on climate change through its top-line communications appears to be broadly positive. In its 2023 Sustainability Journey Report, published in April 2024, the company stated support for the Paris Agreement's goals and a net-zero emissions economy by 2050. The company also stated support for an internal carbon pricing in its 2023 Integrated Annual Report, published in April 2024. However, it is unclear if it supports the need for wider regulation.
Engagement with Climate-Related Regulations: GALP demonstrates limited transparent engagement with specific climate-related regulations in the EU. In its February 2023 consultation response to the EU Electricity Market Design reform, the company supported the policies on power-purchase agreements, however, it appeared unsupportive of the two-way contracts-for-difference for renewable energy.
Positioning on Energy Transition: GALP engages on energy transition-related issues with both positive and negative positions, supporting the development of low-carbon fuels, alongside a continued role for fossil fuels. In its 2023 Integrated Annual Report, published in April 2024, GALP appeared to advocate for a continued role of oil and fossil gas. The company’s former CEO Filipe Silva was unsupportive of the pace of Europe’s energy transition away from fossil fuels, citing cost and industrial competitiveness concerns in a May 2023 article in news outlet Portugal Resident.
In its 2023 Integrated Annual Report, published in April 2024, GALP stated support for the development of biofuels and hydrogen produced from renewables to decarbonize hard-to-abate sectors, including industry, shipping and heavy-duty transport. However, the company advocated for a less ambitious definition on low-carbon hydrogen in October 2024 feedback on the EU Hydrogen and Gas Market Decarbonisation Delegated Act. GALP also engaged with the EU Net Zero Industry Act in June 2023 feedback, suggesting expanding the list of strategic technologies to include biofuels and carbon capture projects, without further details on deployment.
Industry Association Governance: GALP has disclosed most of its industry association memberships in an annual review of the company’s alignment with their positions on climate change, published in March 2024. However, this review did not disclose a framework for addressing potential cases of misalignment, and only described industry associations’ climate policy positions or engagement activities in broad terms, without reference to specific policies. GALP retains membership to SolarPower Europe, which engages positively on climate policy, and FuelsEurope, which has mixed positions on climate policy and regulation, as well as the International Association of Oil and Gas Producers (IOGP), which engages actively and negatively.
This summary was last updated in Q2 2025.