Today, oil and gas companies operate in an environment where the European Union’s climate regulation directly affects exports and investment. A strategic transition is no longer a matter of choice, but of long-term competitiveness.

 

Key EU initiative documents shaping climate requirements:

 

• European Climate Law. The goal is to achieve climate neutrality by 2050 and a 55% reduction in emissions by 2030.
• The European Green Deal — the EU’s long-term strategy for transitioning to a sustainable, low-carbon economy.

 

How the oil and gas sector features in EU climate documents:

 

• The European Climate Law and the European Green Deal set decarbonization targets, including a gradual reduction in dependence on oil and gas in favor of clean energy.
• NECPs (National Energy and Climate Plans) often include plans to reduce oil use, switch to gas as a “transition” fuel, and develop CCS (Carbon Capture and Storage) and hydrogen.
• Import rules (methane) - strict limits on methane emissions from imported oil and gas from 2030, with transparency requirements starting in 2027.
• Sectoral methane reporting - companies are required to monitor and reduce leaks, and to limit flaring and venting.
• CBAM (Carbon Border Adjustment Mechanism) - while not aimed directly at oil and gas, it creates a precedent for carbon accounting and payment on imports of carbon-intensive products.

 

Exporting to the EU now requires transparent carbon footprint accounting and a decarbonization strategy.

 

Challenges for the oil and gas sector

 

• High dependence on fossil fuels and associated carbon emissions.
• Increasing pressure from investors and banks, who are increasingly demanding ESG reporting and climate plans.
• Risk of market loss: companies not ready to demonstrate a low-carbon pathway may be displaced.
• Technology gap: lack of expertise in international emissions accounting standards and climate strategies.

 

Opportunities for meeting the requirements

 

• Investment from international development banks (IFC, EBRD, ADB, World Bank) directed to decarbonization and modernization projects.
• Implementation of monitoring and reporting systems aligned with GHG Protocol, ISO 14064, TCFD.
• Business diversification: development of projects in renewable energy, hydrogen, and CCUS (carbon capture, utilization and storage).
• Increased trust and competitiveness: companies that present a credible low-carbon transition strategy gain access to green finance and long-term contracts.

 

Strategic steps for companies

 

• Risk and opportunity analysis — climate audit and carbon footprint assessment.
• Climate strategy development — a decarbonization plan to 2030 and 2050 aligned with EU requirements.
• Integrating ESG into the business model — not just reports, but real investments in emissions reduction.
• Partnership with international institutions — attracting finance and technical expertise.
• Transparency and communication — open reporting to clients, investors, and the state.

 

Examples of companies aligning with climate requirements

 

TotalEnergies, Shell, BP, Equinor already publish climate strategies and invest in renewables and CCS projects.

Equinor - an oil and gas company actively adapting to EU requirements:

• • launched CO₂ capture and transport projects (Northern Lights);
  • is developing blue and green hydrogen production;
  • reduces methane leaks and deploys digital emissions monitoring;
  • invests in renewable energy sources (offshore wind farms in the North Sea).

 

In Central Asia, the first pilot projects with international development banks are underway (e.g., modernization of refineries and energy systems with EBRD participation). Uzbekneftegaz JSC is undergoing ESG transformation.

 

Uzbekneftegas JSC - Uzbekistan's largest state-owned oil and gas company, engaged in all stages of hydrocarbon resource development: from geological exploration, production and transportation to storage, processing and sale of oil and gas. Now it is undergoing ESG transformation in 3 areas:

 

Environment

• Programs to reduce greenhouse gas emissions implemented.
• CO₂ capture and processing projects launched with international partners.
• Measures adopted to improve energy efficiency in production processes.
• Optimized use of water and natural resources.

 

Social responsibility

• Educational and charitable initiatives implemented.
• Increased focus on occupational health and industrial safety.
• Professional development and training programs for employees established.
• Support for regional social projects for the population.

 

Governance

• Annual sustainability report published (since 2021).
• ESG Implementation Department created to oversee sustainable practices and coordinate projects.
• Annual reporting system established under GRI standards, ensuring transparency.
• Plans developed to obtain ESG ratings and attract “green” investment.
• ESG goals integrated into the company’s strategic business plan to 2030–2050.

 

Climate transformation is not a threat but an opportunity. Oil and gas companies that adapt to the new requirements will gain new markets, financing, and the status of international players. Those who wait risk being left outside the global economy. Today, the strategic transition is the key investment project of the future.

 

📞 Contact us: +998 90 826-71-83
📧 Email: info@hpbs.uz

 

Support for negotiations on climate requirements for suppliers to the European Union
CBAM (Carbon Border Adjustment Mechanism)