Production Gap Report 2023

Production Gap Report 2023

News: Recently, the Production Gap Report 2023 was released.

• The Production Gap Report 2023 is a publication that tracks the discrepancy between governments’ planned fossil fuel production and global production levels consistent with limiting warming to 1.5°C or 2°C. The report was first launched in 2019.
• The report is jointly prepared by Stockholm Environment Institute (SEI), Climate Analytics, E3G, International Institute for Sustainable Development (IISD) and United Nations Environment Programme (UNEP).

Key Findings:
• The 2023 report, titled “Phasing down or phasing up? Top fossil fuel producers plan even more extraction despite climate promises”, finds that governments plan to produce around 110% more fossil fuels in 2030 than would be consistent with limiting warming to 1.5°C, and 69% more than would be consistent with 2°C.
• The persistence of the global production gap puts a wellmanaged and equitable energy transition at risk.
• Government plans and projections would lead to an increase in global coal production until 2030, and in global oil and gas production until at least 2050.
• This conflicts with government commitments under the Paris Agreement, and clashes with expectations that global demand for coal, oil, and gas will peak within this decade even without new policies.
• Major producer countries have pledged to achieve net-zero emissions and launched initiatives to reduce emissions from fossil fuel production, but none have committed to reduce coal, oil, and gas production in line with limiting warming to 1.5°C.

Key recommendations:
• Governments should be more transparent in their plans, projections, and support for fossil fuel production and how they align with national and international climate goals.
• There is a strong need for governments to adopt near- and long-term reduction targets in fossil fuel production and use to complement other climate mitigation targets and to reduce the risks of stranded assets.
• Given risks and uncertainties of carbon capture and storage and carbon dioxide removal, countries should aim for a near total phase-out of coal production and use by 2040 and a combined reduction in oil and gas production and use by three-quarters by 2050 from 2020 levels, at a minimum. 

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