On December 17, 2020, the Board of Directors reviewed the Carbon Management Plan for the period until 2035. The Plan contemplates the following key goals:
1. Prevention of greenhouse gas emissions of 20 million tons in CO2 equivalent;
2. Upstream emissions intensity reduction by 30%;
3. Methane emissions intensity below 0.25%;
4. Zero routine flaring of associated petroleum gas.
Rosneft’s Board of Directors has reviewed the Company’s Carbon Management Plan for the period until 2035. Work on the program has been carried out over the past year. It takes into account the position of our key shareholders and will form the foundation for Rosneft’s environmental agenda in the context of low-carbon economy, including climate risks management and defining opportunities related to the future energy demand.
Rosneft has consistently given a priority to HSE and has contributed to fulfilment of the Russian Federation commitments taken under the Paris Agreement. The Company provides an assessment of its long-term plans under a variety of scenarios, including the scenario of complete achievement of the Paris Agreement targets.
One of the key areas of the Company’s business within implementation of the Carbon Management Plan will be the 30% emissions intensity reduction in Upstream by 2035 and prevention of greenhouse gas emissions of 20 million tons in CO2 equivalent. Rosneft will also continue its efforts under the Energy Savings and Associated Petroleum Gas (APG) Utilization Programs, aimed at zero routine flaring of APG. With that in mind, Rosneft is planning to increase the share of gas in the Company’s output to more than 25%.
Another area of activity will be focused on optimization of emissions from power generation. This includes the analysis of opportunities to replace conventional power plants with electricity generated from low-carbon and renewable energy sources.
Rosneft has a high potential for underground storage facilities and depleted fields reservoirs for Carbon Capture, Utilization and Storage (CCUS). Such projects will provide the Company with an opportunity to use the existing infrastructure for CCUS and to take actions along the entire CCUS value chain, which includes neutralization, transportation and storage of carbon.
Another important area is methane emissions reduction, which has a much higher climate impact potential compared to CO2. Since 2019, the Company has been running a comprehensive program to reduce methane emissions. Expansion of this program includes the introduction of innovative technologies such as drones, laser-based and heat-imaging scanners, ultrasonic detectors, which will contribute to reduction of methane emission intensity to levels below 0.25%.
To further reduce emissions from the Company’s products, we continue the program to expand the offer of compressed natural gas at retail sites, and we are also reviewing options to manufacture new green and clean fuels, such as hydrogen, bio-diesel and sustainable aviation fuel.
Another important aspect for the carbon footprint reduction is the use of natural carbon sinks. Planting more than one million trees per year on average, Rosneft is already making a significant contribution to greenhouse gases absorption by forests. For our 2035 program, the Company has set an even more ambitious target – to unlock the absorption potential of Russia’s forests and to develop a large-scale reforestation and forest maintenance program to offset emissions.
In addition to the 2035 objectives, the Company will continue the search for additional opportunities to achieve net carbon neutrality by 2050.
Commenting on the 2035 Carbon Management Plan, the Chairman of Rosneft’s Management Board and the Chief Executive Officer Igor I. Sechin noted,“Rosneft finds itself in a unique position in terms of hydrocarbons supply with a low carbon footprint to satisfy the growing global energy demand. As one of the leaders of the global energy sector, with a vast and efficient resource base we set a goal in our 2035 Carbon Management Plan to reduce greenhouse gas emissions and produce more energy with less environmental impact”.
Key Goals and Directions of the Carbon Management Plan