We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: International Gas Union (IGU) has stated top-line support for mitigation of climate change. However, it appears to strongly advocate for policies in favor of fossil gas, often promoting it as an effective tool for decarbonization without setting a clear date for its phase out.
Top-line Messaging on Climate Policy: IGU has acknowledged the science of climate change and appears broadly supportive of the need for climate change regulations, including the Paris Agreement. In August 2020, an IGU press release recognized the Paris Agreement as the “world’s most ambitious commitment” towards climate change mitigation. Further, in June 2021, IGU President Joe Kang recommended in the World LNG Report 2021 that the recovery from the COVID-19 pandemic should be aligned with the Paris Agreement. In October 2020, IGU along with other gas industry leaders advocated to the EU to “support ambitious and pragmatic” policies to achieve net-zero by 2050. In October 2019, IGU website deemed carbon pricing as the “most effective” policy to account for the environmental cost of CO2 emissions, and in a November 2020 press release, IGU advocated for “actions to price carbon” and “regulate emissions”.
Engagement with Climate-Related Regulations IGU has engaged primarily with EU policies affecting the role of fossil gas in the energy mix, and has limited engagement with policy streams outside of that. In 2020, IGU website supported the new carbon taxes and emissions trading systems adopted across the world, calling it a “positive development”. Further, in March 2021 as reported by Reuters, it supported the adoption of a carbon tax in major economies. IGU also appears supportive of policies to reduce GHG emissions, especially methane, within the wider economy. In September 2021, in a LinkedIn post, IGU appeared to support the proposed methane reduction legislation in the EU Green Deal. However, in a December 2021 press release, IGU did not support EU Methane Regulation for the energy sector, citing the complexity and administrative burden that comes with the rules.
Positioning on Energy Transition IGU strongly advocates for the continued role for fossil gas in the energy mix. IGU also appears to posit fossil gas as a clean source of energy and refers to hydrogen produced from fossil gas as a ‘renewable’ gas. In March 2021, IGU warned of the possible “failure” of the Paris Agreement if the world adopted electrical-only pathways to decarbonization, and recommended that the energy transition be led by industries.
IGU’s public messaging seeks to influence the narrative around fossil fuels by promoting it as a vehicle for decarbonization. For instance, IGU’s Twitter page is active and vocal about fossil gas and the need for it in the present and future. IGU’s tweets include arguments on the need for gas to complement renewables, transition away from coal, and encourage hydrogen production. Multiple tweets from December 2021 also emphasized the drawbacks of wind and solar energy sources in Europe and called for a gas-powered energy system.
IGU has advocated for policies to support fossil gas, with direct lobbying focused primarily in the EU. A press release from December 2021, did not support EU’s Hydrogen and Gas Decarbonization Package, referring to measures for total electrification as “impracticable” and used this argument to support fossil gas. In November 2021, IGU supported expanded fossil gas usage in Vietnam in a press release commenting on Vietnam’s updated Power Development Plan no 8 (PDP8). In April 2020, IGU's magazine opposed the restrictions placed on financing fossil gas set in the EU Green Deal. Later in June 2020, it co-wrote a letter to the European Commission, advocating in favor of an ambiguously worded “renewable and decarbonized gases” to decarbonize the building sector. This was followed by another letter to the Commission in October 2020, in which IGU advocated for policies to include fossil gas in the EU Sustainable Finance Taxonomy to support gas as the “backbone of the future EU energy system.” In June 2019, IGU co-wrote a public statement to the EU Commission President, endorsing fossil gas to meet decarbonization targets. It also opposed European Investment Bank's decision to halt the financing of fossil fuels in a press release from November 2019.