Energy Transition Briefing Paper

CarbonTP was engaged by Cooper Energy in 2021 to prepare a memorandum for their Board on “Financial Risk and Decarbonisation” in the oil and gas sector.

The financial sector perceives their greatest financial risk over the next decade is the potential erosion of value if investments are not resilient to the impacts of climate change. This is expected to translate into restrictions on the availability and access to debt, equity finance or insurance at commercial terms.

The memorandum focused on the following key topics as they relate to the Energy Transition:

• Clarification of the new financial risks facing oil and gas asset investments as a result of the climate change-initiated energy transition.
• Change being driven by the providers of debt, equity and insurance.
• The rising pressure from organisations such as TCFD, CA100+ and TPI
• Recognition of the speed of change
• What the oil and gas sector should expect next
• Science Based Targets for emissions
• Possible impact on the Australian oil and gas sector