Fortescue first to back fossil fuel treaty

Fortescue (ASX: FMG) has formally endorsed the proposed Fossil Fuel Non-Proliferation Treaty, an initiative committed to setting clear deadlines for the phase out of fossil fuels globally.

It is the largest global company and the first major industrial business to endorse the initiative.

At the World Economic Forum in Davos, Switzerland, the Fossil Fuel Treaty Initiative announced that it had accepted Fortescue’s endorsement.

Fortescue says the decision vindicates the company’s transparent pursuit of its Real Zero 2030 target, with the Fossil Fuel Treaty Initiative undertaking a detailed, months-long analysis of Fortescue’s commitments before accepting its endorsement.

Real Zero entails the elimination of fossil fuels, rather than reliance on voluntary carbon offsets or carbon capture and storage.

The announcement was made by Fossil Fuel Treaty Initiative founder and chair Tzeporah Berma and Dr Forrest at a Fortescue-hosted roundtable at the World Economic Forum, entitled “Leading a Profitable and Rewarding Switch to Green Energy by 2040”. It featured executives from some of the world’s heaviest emitters.

The announcement comes after Fortescue’s Real Zero climate transition plan was independently assessed against the criteria of the UN High Level Expert Group on Net Zero by Climate Integrity and the University of Technology Sydney. The assessment found alignment or partial alignment for all criteria.

Founding director of Climate Integrity, Claire Snyder, says Fortescue is the first Australian company Climate Integrity has assessed that has a plan to phase out fossil fuels without carbon offsetting, an industry-leading benchmark for climate ambition.

Fortescue’s commitments include the ‘high-ambition’ climate transition plan, unveiled at the United Nations General Assembly last September; ongoing commitment to pursue validation with the science-based targets initiative and submissions to the Federal Government consultative process on the Government’s 2035 emission-reduction target.

Dr Forrest says if Fortescue can achieve Real Zero by 2030, there is no reason the rest of the world can’t follow by 2040.

“The economics make sense and the technological solutions exist to phase out fossil fuels,” he said.

“Negotiating a Fossil Fuel Treaty presents a unique opportunity to help realise Real Zero at a global scale through meaningful government and corporate action. I call on other heavy emitters to endorse the Treaty proposal and commit to a future beyond fossil fuels.”

Ms Tzeporah Berman says Fortescue is one of the only major industrial companies that is committed to reaching climate targets through absolute reductions in fossil fuel use instead of questionable offsets and is not investing in any fossil fuels.

“This kind of leadership is exciting and after careful assessment of their policies and practices we are thrilled to accept their endorsement of the Fossil Fuel Treaty Initiative,” she said.

“This landmark decision not only underscores Fortescue’s commitment to its ambitious Real Zero 2030 target, but also sets a powerful precedent for other companies to follow. It signals to the market that the transition to a fossil fuel-free future is not only necessary — it is achievable and economically viable.

“We invite companies across all sectors to join us in this growing movement of countries, organisations, individuals and businesses that are pushing for a Real Zero emissions target, showing that this can only be achieved one way: by phasing out the production and use of fossil fuels and by putting a decisive end to new investment.

“Together, we can chart a sustainable path that not only protects our planet, our communities and everything we love, but also unlocks new, sustainable and profitable economic opportunities for future generations and supports governments who are charting a truly ambitious course for fossil fuel phase out and a new Treaty.”

The Fossil Fuel Treaty proposal aligns with Fortescue’s Real Zero ambition, supporting a fast and fair fossil fuel phase out and a 100% reduction in emissions while calling for investment to move away from “net” zero technologies and into renewable technologies aimed at achieving Real Zero.