Costa Rica, Denmark look at building alliance to phase out oil, gas: press
Denmark and Costa Rica are seeking to create an alliance of countries prepared to end the issue of leases for oil and gas exploration and fix a date for phasing out existing production, Reuters reported on August 25.
According to draft rules set by the Beyond Oil and Gas Alliance (BOGA) that were seen by Reuters, "restricting domestic oil and gas production in line with what is required to live up to the Paris Agreement goals will be the core focus for BOGA." The thinking aligns with the International Energy Agency's report in May, which stated that no further investment in oil and gas is needed in a scenario where the world achieves net-zero emissions by 2050.
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Countries that want to join the BOGA will have to set deadlines to end oil and gas production and end new licensing rounds. The alliance is set to be launched at the UN climate summit in November in Glasgow, but its draft rules could change before then, according to Reuters.
Denmark's parliament voted in December last year to end oil and gas licensing and stop producing hydrocarbons by 2050. France, Spain and Ireland, which have limited oil and gas reserves, have taken similar steps. Costa Rica likewise produces very little oil of its own, and generates almost all of its energy from renewable sources. A presidential decree in 2002 imposed a moratorium on exploration until 2050, and the Central American country's current government is pushing to enshrine this ban in law.