But analysts called the sum a “drop in the ocean” which showed the companies were not serious in tackling global warming.

The new fund will focus on reducing leaks of natural gas – a powerful greenhouse agent – and technology to capture and store carbon emissions, as well as increasing the fuel efficiency of vehicles. But it will not support the renewable energy, smart grid and storage technologies which are revolutionising the energy industry.

Climate change and sustainable investment campaigners dismissed the initiative as greenwash noting that, with the fund to be deployed over the next decade, the $100m annual investment represents 0.1% of the companies’ current level of yearly capital expenditure.

Scientists have calculated that half of all known gas reserves and a third of oil reserves cannot be burned if the world is to meet the Paris limit of 2C of warming. This makes the oil companies’ current business model of continuing exploration for new reserves nonsensical, say the campaigners.

The 10 companies that comprise the Oil and Gas Climate Initiative (OGCI) produce 20% of the world’s oil and gas. Bob Dudley, chief executive of BP and OGCI chairman, said: “Climate change is so important for the long term that it justifies our concerted action today. OGCI is adding shared investment to shared action towards a lower carbon future and I expect opportunities to grow and investments to prosper over time.”

The OGCI sees the gas its members produce as a lower carbon alternative to coal, and carbon capture and storage (CCS) technology as a way to prolong the continued use of fossil fuels. Scientists agree CCS is vital as without it the cost of tackling climate change will hugely increase, according to the the UN’s climate science panel and the UK government’s official climate advisors. But developing commercial scale CCS is likely to require many billions of dollars.

Oil and gas contribute about 37% of global carbon emissions, with transport a major user of oil. The OGCI said it will work with auto manufacturers to develop more efficient vehicles but this will compete with the fast growth of electric cars.

The OGCI said Friday’s initiative was focused on actions needed from now until about 2040 and said it would look in 2017 at the technologies needed to meet the “very ambitious” Paris treaty goal of net zero emissions in the second half of the century.

Amin Nasser, chief executive of OGCI-member Saudi Aramco, said: “The launch of the OGCI climate investments [fund] clearly demonstrates our industry’s climate and environmental stewardship and our resolve to deliver secure, affordable and sustainable energy to the world while significantly reducing greenhouse gas emissions.”

Danni Paffard, at climate campaign group 350.org said: ‘This announcement is outrageous filibustering from an industry with no future. Forget their smoke and mirrors offerings, the fossil fuel industry’s basic business plan doesn’t stack up with global climate goals. Real climate action means leaving oil, coal and gas reserves in the ground, and until they do that nobody will be falling for this cynical PR spin.”

Jonathan Marshall, energy analyst at the Energy and Climate Intelligence Unit, a UK-based thinktank, said: “Investing $1bn over 10 years averages to just $10m per year per company involved. This figure is a drop in the ocean,” he said. Bill Gates alone is contributing $1bn to the Breakthrough Energy Coalition, Marshall noted.

“The business models of these companies are fundamentally incompatible with the Paris climate commitments,” he said. “This announcement shows that oil and gas companies are contemplating no real deviation from their traditional business models.”

Anthony Hobley at Carbon Tracker, a thinktank that analyses the risks to oil companies if climate action prevents their reserves being used, said: “These companies must stop tinkering around the edges. Big oil is still ignoring the fundamental risk the ‘carbon bubble’ poses and clinging to orthodox growth strategies.”

Juliet Philips, at sustainable investment NGO ShareAction, said: “Until initiatives like those announced by the OGCI are backed up by long-term corporate strategies that are consistent with achieving the Paris treaty, scepticism of their sincerity is inevitable.” Managers of investments totalling more than $2.6tn have already committed to pulling out of fossil fuel companies.

Oil companies are under increasing pressure from both climate change policy and the rise of renewable energy. In October, the International Energy Agency said the rollout of renewables was accelerating and predicted capacity from renewable sources will grow faster than oil, gas, coal or nuclear power in the next five years.

On Wednesday, OGCI-member Shell, said oil demand could peak as soon as five years from now, a moment that would herald the end of oil production growth.

The OGCI members are BP, CNPC, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and Total, but no US oil companies have joined.

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