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Australian Petroleum Production & Exploration Association (APPEA)

APPEA is the national body representing Australia’s oil and gas exploration and production industry.[1] It has around 140 member companies which provide goods and services to the upstream oil and gas industry.[2]

Membership of board/executive committee: Shell is a member of the board of directors.[3]

  • 2022 assessment outcome: Some misalignment
  • 2021 assessment outcome: Aligned


Shell benefits from its membership of APPEA, especially in relation to its advocacy on gas, and supporting emissions reductions through advocating new technologies such as carbon capture and storage (CCS).

We welcome APPEA’s efforts in 2022 to raise industry awareness of the need to reduce methane emissions and its public support for the Australian government’s decision to sign the Global Methane Pledge.[4]

We have found APPEA to have some misalignment with our climate and energy transition-related policy positions.

We will urge APPEA to:

  • Continue to support reducing methane emissions throughout the natural gas supply chain. Support direct regulations for reducing methane emissions such as performance standards based on robust monitoring, reporting and verification frameworks. Support ending routine flaring by 2030 or sooner to help achieve such standards.

We will encourage APPEA to:

  • Provide information on its website about its work with Net Zero Australia.
  • Support common standards and benchmarks to allow comparison of environmental, social and governance (ESG) reporting.

We will remain a member of APPEA at the current time. We will continue to track alignment between APPEA’s climate and energy transition-related positions and our own, and will be transparent about where we find differences. We will continue to engage the association, including through our positions on APPEA’s board and committees, in areas where we have different views.

Further information

Click on the sections below to read more.

Paris Agreement and net-zero emissions

  • APPEA has stated support for the temperature goal of the Paris Agreement.[5]
  • APPEA has stated support for policies that seek to achieve emission reductions consistent with net-zero emissions across the Australian economy by 2050.[6]
  • APPEA’s 2022 submission on the Safeguard Mechanism Reform states that “Policies should achieve emissions reductions consistent with net-zero emissions across the Australian economy by 2050 as part of a contribution to a goal of global net-zero emissions by 2050.”[7]

Carbon pricing

  • APPEA has stated that Australia should seek to deliver “low cost greenhouse gas emissions abatement through an appropriately designed price mechanism that provides an economy-wide transparent signal to shape business and consumer plans and investments.”[8]
  • APPEA’s 2022 submission on the Safeguard Mechanism Reform states that “APPEA has for many years supported a national climate change policy that delivers greenhouse gas emissions reductions, consistent with the objectives of the Paris Agreement, and applies a broad-based price signal on emissions to facilitate broad-based investment decisions at the lowest cost to the economy.”[9]

Energy efficiency

  • APPEA’s 2022 submission on the Safeguard Mechanism Reform notes that commercial and management drivers already provide strong incentives for new facilities to be designed to maximise energy efficiency and reduce greenhouse gas emissions, and that this should be reflected in the setting of appropriate baselines.[10]

Decarbonised hydrogen

  • APPEA has stated support for hydrogen, including hydrogen made from natural gas with greenhouse gas emissions managed through “market offset or technical abatement (such as carbon capture and storage) to offer a carbon-neutral product”.[11] It also recognises decarbonised hydrogen using renewable sources.[12]
  • In a speech at the 2022 Roundtable for Energy Resources in October 2022, APPEA’s CEO stated that “to actually deliver on our hydrogen ambitions […] will probably need all of the colours of hydrogen”.[13]
  • APPEA’s 2022 submission on the Safeguard Mechanism Reform stated an “Australian hydrogen industry and a local market could generate significant opportunities for the country” and that developing “a local hydrogen industry could enable lower emissions both in Australia and internationally, reduce energy costs, deliver energy security, together with new employment and manufacturing opportunities.”[14]

Natural ecosystems

No position

Carbon capture and storage

  • APPEA has stated support for carbon capture and storage (CCS).[15]
  • In a 2022 media release about the federal government’s announcement of two permits for offshore greenhouse gas storage, APPEA’s CEO stated: “It’s no surprise there was strong interest in these CO2 storage releases given the important role that CCS will play in meeting our climate goals and the oil and gas industry’s commitment to net zero greenhouse gas emissions by 2050. The industry is working hard to lower emissions as a major investor in decarbonisation measures.”[16]
  • APPEA’s 2022 submission on the Safeguard Mechanism Reform states that “CCS provides the potential to deliver competitive, large-scale abatement for existing industries and new industries such as hydrogen and ammonia” and that funding and financing options for CCS “should be a key part of Australia’s climate change policy response”.[17]

Environmental, social and governance (ESG) standards and benchmarks, sustainable finance taxonomies

  • APPEA has not stated a position on supporting common standards or ESG benchmarks.
  • APPEA has launched a members’ ESG portal on its website that states: “Our members identified ESG and capital markets as an area APPEA should prioritise in its expanding remit, focussing on more positive and impactful external commentary, explaining policy to market from a holistic industry perspective, and providing updates on global ESG trends and advice on investor sentiment.”[18]


  • APPEA has highlighted the need for coal to gas switching.[19]

Electrification with renewable or low-carbon power

No position

Gases and methane

  • APPEA has stated that “natural gas is the perfect partner to intermittent renewable energy”.[20] In response to the publication of the 2022 Australian Energy Market Operator (AEMO) 2022 Integrated System Plan, which highlighted the role of gas as a stabiliser for the electricity grid in a cleaner energy future, APPEA stated “the plan confirms the central role of gas in that future as a reliable and flexible stabiliser for renewable power generation.”[21]
  • In October 2022, APPEA issued a media release stating that ”the Australian Government’s decision to sign the Global Methane Pledge is an important step in the emissions reduction pathway to net zero, according to the nation’s oil and gas industry.”[22] Participants joining the Pledge agree to take voluntary actions to contribute to a “collective effort to reduce global methane emissions at least 30 percent from 2020 levels by 2030”.[23] APPEA also stated that it had worked with the Australian government “towards its recent decision to sign the Pledge”.[24]
  • In APPEA’s 2022 report “Australia’s Cleaner Energy Future: Industry’s Actions on Reducing Methane Emissions”, APPEA sets out what its members are doing to tackle methane emissions.[25]
  • APPEA has not stated a position on reducing methane emissions through direct regulations such as performance standards based on robust monitoring, reporting and verification frameworks. However, APPEA supports the measuring, monitoring, reporting and reduction of methane emissions and highlights its members’ actions on methane emissions reduction.[26]
  • APPEA has not stated a position on ending routine flaring. However, in a 2022 media article, APPEA’s CEO said: “The industry is committed to reduce flaring and continues to monitor, report and reduce its own emissions profile”.[27]

Road transport: Passenger cars and vans

No position

Road transport: Heavy-duty vehicles

No position

Heavy industry decarbonisation

No position


No position


No position

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[3] Appointments to the board are subject to confirmation by the APPEA board.