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

The document argues that national oil companies (NOCs), which control half of global oil and gas production and two-thirds of hydrocarbon reserves, are likely to exceed their carbon budgets more than international oil companies. It highlights a disconnect between financial actors and NOC decarbonization, specifically noting that credit ratings are not currently linked to low-carbon transition plans. The brief aims to provide levers for financial actors to hold NOCs accountable for their production and investment strategies, particularly those internationally exposed NOCs dependent on external financing.

• National oil companies (NOCs) hold a dominant position in the 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 leading oil and gas companies, including 40 NOCs, indicates that NOCs are projected to exceed their carbon budgets more than international oil companies.
• There is a gap between financial actors and the decarbonization needs of NOCs, exemplified by the fact that NOC credit ratings are not currently tied to their low-carbon transition plans.

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} }