Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators

This briefing provides guidance for financial actors, standard setters, and governments to drive the decarbonization of national oil companies (NOCs) to align with the 1.5°C target. It highlights the significant role NOCs play in global hydrocarbon production and the current lack of connection between their credit ratings and low-carbon transition plans.

• National oil companies (NOCs) hold a dominant position in the global energy sector, accounting for 50% of oil and gas production, 40% of sector investments, and two-thirds of global hydrocarbon reserves. An analysis of 99 oil and gas companies, including 40 NOCs, indicates that NOCs are projected to surpass international oil companies in their carbon budgets.
• There is a disconnect between financial actors and the decarbonization needs of NOCs, specifically regarding credit ratings. Currently, the credit ratings of NOCs are not linked to their low-carbon transition plans, despite the transition risks these companies face.
• The briefing aims to provide guidance to governments, banks, investors, and standard setters on improving NOC low-carbon transition plans and aligning investments with the Paris Agreement's 1.5°C target, while building momentum for accountability at COP 28.

APA

Mahdavi,, A. P. J. R. P. (2023). Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/assessing-national-oil-companies-transition-plans-tool

Chicago

Mahdavi,, Angela Picciariello,Natalie Jones,Joachim Roth,Romain Poivet,Paasha. Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators. International Institute for Sustainable Development, 2023. https://www.iisd.org/publications/brief/assessing-national-oil-companies-transition-plans-tool.

Wikipedia

{{cite report |last1=Mahdavi, |first1=Angela Picciariello,Natalie Jones,Joachim Roth,Romain Poivet,Paasha |title=Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators |publisher=International Institute for Sustainable Development |date=29 November 2023 |url=https://www.iisd.org/publications/brief/assessing-national-oil-companies-transition-plans-tool |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mahdavi2023assessing, author = {Mahdavi,, Angela Picciariello,Natalie Jones,Joachim Roth,Romain Poivet,Paasha}, title = {{Assessing National Oil Companies' Transition Plans: An essential tool for banks, investors, and regulators}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = nov, url = {https://www.iisd.org/publications/brief/assessing-national-oil-companies-transition-plans-tool}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }