Equinor said it will leave the Independent Petroleum Association of America (IPAA) industry lobby group over its differences on climate positions as the company looks to move forward with its climate roadmap and renewable energy investments.
“We believe that IPAA’s lack of position on climate leaves the association materially misaligned with Equinor’s climate policy and advocacy position,” the company said in a review of industry associations. “Equinor has assessed our membership and decided not to remain a member of IPAA from 2020.”
Equinor was not on the IPAA board but did participate in the group’s environmental and safety committee, land and royalty committee, and offshore committee.
The move comes after Equinor updated its outlook for 2020 with a $3 billion action plan to strengthen its financial resilience in a market affected by COVID-19 and low commodity prices.
Key elements of the plan include reducing organic capital expenditures for 2020 by 20%, reducing exploration activity from $1.4 billion to around $1 billion, and reducing operating costs by around $700 million compared with original estimates. A Reuters article also cited one company spokesperson saying a planned increase in renewable-energy investments would go ahead, however.
In February, the company launched its new climate roadmap, which aims to ensure a competitive and resilient business model in line with the Paris Agreement.
Objectives of the roadmap include
- Reducing the net carbon intensity of energy produced, from initial production to final consumption, by at least 50% by 2050
- Growing renewable-energy capacity tenfold by 2026 and developing as a global offshore wind major
- Strengthening its industry leading position on carbon-efficient production, aiming to reach carbon-neutral global operations by 2030