{"id":30403,"date":"2023-09-26T06:07:47","date_gmt":"2023-09-26T04:07:47","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=30403"},"modified":"2023-09-26T16:45:11","modified_gmt":"2023-09-26T14:45:11","slug":"analysis-reveals-totalenergies-misleading-transition-claims","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2023\/09\/26\/analysis-reveals-totalenergies-misleading-transition-claims\/","title":{"rendered":"Analysis reveals TotalEnergies\u2019 misleading transition claims"},"content":{"rendered":"

At its Investor Day <\/span>on 27 September<\/span>, <\/span>TotalEnergies <\/span>will<\/span> present itself once again as a \u00ab\u00a0major player in the energy transition\u00a0\u00bb. But <\/span>is it really diversifying its energy <\/span>products<\/span>? <\/span>A<\/span> new briefing<\/span> from<\/span> Reclaim Finance <\/span><\/a><\/span>shows that <\/span>TotalEnergies’ <\/span>fossil fuel <\/span>extraction will<\/span> in fact<\/span> increase between now and 2030, <\/span>while <\/span>representing<\/span>, <\/span>as it claims, <\/span>a smaller share of <\/span>the <\/span>energy <\/span>production <\/span>mix<\/span>. <\/span>The company\u2019s<\/span> new <\/span>extraction <\/span>activities are largely based on fossil gas, with in particular a 40% increase in liquefied natural gas (LNG) production between 2020 and 2030. Reclaim Finance is calling on <\/span>TotalEnergies\u2019 investors<\/span> to face the facts and honour their climate commitments by <\/span>ceasing to support the company until it abandons its oil and gas expansion strategy.<\/span><\/span><\/strong><\/p>\n<\/div>

TotalEnergies likes to talk about its solar, wind and low-carbon sources of energy (hydrogen, biogas, biofuels) (1), but these will account for just 20% of its energy mix by 2030, compared to 80% for oil and gas. Despite the recent claims from chief executive Patrick Pouyann\u00e9 that the group was \u00ab\u00a0the most committed to the energy transition\u00a0\u00bb (2), the company plans to increase gas production by 12% by 2030 (3) and liquefied natural gas (LNG) production by 40% between 2020 and 2030.\u00a0<\/span>\u00a0<\/span><\/p>\n<\/div><\/div><\/div>

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The<\/span> claims<\/span>, often repeated by investors,<\/span> that TotalEnergies\u00a0<\/span> is genuinely diversifying its activities to make a real contribution to the transition do not stand up to analysis. It intends to increase its fossil gas business in both relative and absolute terms. <\/span>Investors<\/span> cannot credibly justify their support for TotalEnergies<\/span> on the basis that they are supporting the company in its<\/span> transition<\/span>. T<\/span>his argument <\/span>has no basis in fact.<\/span><\/span><\/em><\/p>\n<\/div>

Antoine Laurent, <\/span>a<\/span>dvocacy <\/span>lead <\/span>at Reclaim Finance<\/span><\/span><\/strong><\/p>\n<\/div><\/div><\/div>

TotalEnergies highlights its target of 100 GW gross renewable intalled capacity by 2030, but this target includes projects in which the Group is a minority shareholder. And the company’s renewable capacity growth is based more on acquiring existing capacity than developing new supplies.\u00a0<\/span>\u00a0<\/span><\/p>\n

But this figure in fact accounts for only part of the 20% of TotalEnergies\u2019 projected production, as it plans to produce some of its electricity and hydrogen from gas. This is composed mainly of methane, a greenhouse gas which is 82.5 times more potent than carbon dioxide over a 20-year period.<\/span>\u00a0<\/span><\/p>\n

Instead of scaling back its hydrocarbon extraction and transport activities, the oil and gas giant is planning new gas projects (4), such as Papua LNG, a gas liquefaction and export terminal project in Papua New Guinea (5). This project, which will increase the country’s emissions from industry and energy by 7% (6), is being facilitated by the French bank Cr\u00e9dit Agricole, which is acting as financial advisor.<\/span>\u00a0<\/span><\/p>\n<\/div><\/div><\/div>

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Papua New Guinea is already suffering the full brunt of climate change. By developing this fossil fuel project, TotalEnergies would be taking us even further into new climate, environmental and social risks. If we are to have a sustainable future, French banks, and Cr\u00e9dit Agricole in particular, must commit to no longer supporting Papua LNG.<\/span><\/span>
\n<\/span><\/em><\/p>\n<\/div>

Peter Bosip, representing the Papua<\/span> New Guinea<\/span> NGO CELCOR<\/span><\/span>
\n<\/span><\/strong><\/p>\n<\/div><\/div><\/div>

Given TotalEnergies misleading claims, Reclaim Finance is calling on Cr\u00e9dit Agricole to withdraw from the \u00ab\u00a0Papua LNG\u00a0\u00bb climate bomb, and for all banks and investors to stop supporting new gas production, processing and transport projects and to cease all support for TotalEnergies until major changes it climate-destructive strategy.<\/span>\u00a0<\/span><\/p>\n<\/div><\/div><\/div>

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Contacts:<\/h2><\/span>
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