Rosneft sets path to net zero emissions by 2050

Russia's largest crude producer Rosneft announced on Tuesday plans to achieve carbon neutrality by 2050 for Scope 1 and 2 operational emissions..

The company said in a statement it will reach this ambitious target through a number of actions aimed at reducing emissions – including the use of low-carbon power generation, zero routine flaring, usage of energy-saving technologies, carbon capture and storage technologies and use of natural forest offsets.

The company’s 2035 climate targets set a year ago already included the prevention of 20 million MT CO2 equivalent of greenhouse gas emissions, reduction of upstream emissions intensity by 30 percent compared with 2019 levels, a methane emission rate below 0.25 percent and zero routine flaring of associated gas.

Under the new strategy, Rosneft has brought forward the target to achieve zero routine flaring by 2030, five years earlier than previously planned, and set a methane intensity reduction of below 0.2 percent.

Other initiatives include the phased transfer of the company’s own vehicles to low-carbon fuels; expansion of the CNG network; increasing the number of EV charging points at Rosneft's retail sites; and producing aviation fuels with lower carbon footprint.

These initiatives will help support the achievement of 17 UN Sustainable Development Goals, as well as the goals of Russian ”2050 Strategy of Social and Economic Development with Low Greenhouse Gas Emission” and the Paris Agreement, the company said.

“The Board of Directors approved our new strategy and laid the foundation for the company's development for decades to come. The new strategy supports free cash flow growth, which is expected to more than double by 2030, facilitates sustainable growth of the company's shareholder and investor value. Carbon reduction objectives confirm the company's status as a responsible energy supplier and one of the leaders in energy transition in Russia,” said Rosneft CEO Igor Sechin.

Rosneft achieved most of the targets set in the “Rosneft-2022” strategy ahead of schedule by the end of 2021. The new strategy is built upon the achievements of the previous strategic cycle and, at the same time, is adjusted to current trends related to the low-carbon agenda, the global energy transition, and the need for reliable supplies of affordable and clean energy.