API outlines path for low-carbon future in new climate action framework

API has released a new policy framework of industry and government actions to address the risks of climate change while meeting the world’s long-term energy needs. The framework aims to build on the progress the US has made in driving emissions to generational lows, including accelerating technology and innovation; further mitigating emissions from operations; endorsing a carbon price policy; advancing cleaner fuels and driving climate reporting.

“Confronting the challenge of climate change and building a lower-carbon future will require a combination of government policies, industry initiatives and continuous innovation,” API President and CEO Mike Sommers said. “America has made significant progress in reducing emissions to generational lows, but there’s more work to do, and there’s nobody better equipped to drive further progress than the people who solve some of the world’s toughest energy problems every day. As our industry accelerates efforts to advance groundbreaking technologies, reduce emissions and drive transparent and consistent climate reporting, we urge lawmakers to support market-based policies that foster innovation, including carbon pricing.”

API and its members support climate actions in the following five areas:

1. Accelerate technology and innovation to reduce emissions while meeting growing energy needs

• • Fast-track the commercial deployment of carbon capture, utilization and storage (CCUS).
  • Advance hydrogen technology, innovation and infrastructure.
  • Advocate for the full appropriations of funds for research, development and deployment (RD&D) programs authorized in the bipartisan Energy Act of 2020.

2. Further mitigate emissions from operations to accelerate environmental progress

• • Advance direct regulation of methane from new and existing sources.
  • Develop a refinery carbon reduction program for API member companies.
  • Deliver flaring reduction results as part of the Environmental Partnership’s flare management program.

3. Endorse a carbon price policy to drive economy-wide, market-based solutions

• • Advocate for sensible legislation that prices carbon across all economic sectors while avoiding regulatory duplication.

4. Advance cleaner fuels to provide lower-carbon choices for consumers

• • Develop markets for differentiated US natural gas.
  • Support policies to advance lower-carbon electricity.
  • Reduce lifecycle emissions in the transportation sector.

5. Drive climate reporting to provide consistency and transparency.

• • Expand ESG reporting guidance for the natural gas and oil industry.
  • Develop a concise, minimum template of core greenhouse gas emissions indicators providing relevant information and enhancing consistency and comparability in reporting.
  • Build on API compendium of GHG emissions methodologies for the natural gas and oil industry.

Read API’s climate action framework here and a fact sheet here.