National Oil Companies and Climate Change: Insights for Advocates

The briefing outlines five key strategies for engaging national oil companies (NOCs) in the energy transition: recognizing their role within national government ambitions, addressing cognitive biases regarding economic risks, supporting economic diversification to protect vulnerable populations, tailoring strategies to the specific characteristics of different NOCs, and cautiously evaluating NOC investments in renewable energy to avoid crowding out other actors.

• National oil companies are deeply integrated into their countries' economic systems, meaning that reform requires engaging with the ambitions of national governments and citizens.
• Decision makers at NOCs and within their governments often fail to perceive the economic risks of the energy transition because their incentives remain tied to the status quo.
• Reducing oil production without viable economic diversification would harm vulnerable populations in producing countries; however, diversification progress has been limited by structural barriers and a lack of political commitment.
• Advocates should customize their reform strategies based on five dimensions of NOC variation: production cost, national income level, openness to external influence, home economy dependence on oil, and the scope of climate impacts.
• While NOC investment in renewables can provide a stake in the energy transition, it may be counter-productive if the NOC lacks the necessary capacity or if it crowds out other public and private actors.

APA

Roth,, A. G. R. P. H. M. M. M. M. M. M. P. (2021). National Oil Companies and Climate Change: Insights for Advocates. International Institute for Sustainable Development. https://www.iisd.org/publications/national-oil-companies-advocacy-insights

Chicago

Roth,, Alexandra Gillies,Patrick R. P. Heller,Paasha Mahdavi,David Manley,Valérie Marcel,Lourdes Melgar,Francisco Monaldi,Greg Muttitt,Angela Picciariello,Joachim. National Oil Companies and Climate Change: Insights for Advocates. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/national-oil-companies-advocacy-insights.

Wikipedia

{{cite report |last1=Roth, |first1=Alexandra Gillies,Patrick R. P. Heller,Paasha Mahdavi,David Manley,Valérie Marcel,Lourdes Melgar,Francisco Monaldi,Greg Muttitt,Angela Picciariello,Joachim |title=National Oil Companies and Climate Change: Insights for Advocates |publisher=International Institute for Sustainable Development |date=8 November 2021 |url=https://www.iisd.org/publications/national-oil-companies-advocacy-insights |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roth2021national, author = {Roth,, Alexandra Gillies,Patrick R. P. Heller,Paasha Mahdavi,David Manley,Valérie Marcel,Lourdes Melgar,Francisco Monaldi,Greg Muttitt,Angela Picciariello,Joachim}, title = {{National Oil Companies and Climate Change: Insights for Advocates}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = nov, url = {https://www.iisd.org/publications/national-oil-companies-advocacy-insights}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }