Topline
Eni said Friday it vowed to become carbon neutral — balancing greenhouse gas emissions by offsetting from the atmosphere an equivalent amount of carbon – by 2050, joining an array of other oil majors making similar pledges to go “green.”
The CEO of ENI Claudio Descalzi during the presentation of the white book of digital economy . Rome ... [+]
Key Facts
Eni plans to cut emissions by 25% by 2030 from 2018 levels and reduce them by 65% by 2040.
Eni said it will achieve carbon neutrality by increasing production from its bio-refineries, increasing its renewable capacity and starting other green projects.
Eni plans to allocate $8.5 billion annually over the next four years in capital expenditures, with more than 20% of such funds set aside for green endeavors.
Eni’s targets come shortly after Italy’s new Prime Minister Mario Draghi said his government plans to increase renewable energy and green hydrogen production, while also creating a “green super-ministry” to help with the transition to renewables.
Eni also reported an annual net loss of $900 million in 2020, versus a net profit of $3.5 billion in the prior year, although the company returned to profitability in the fourth quarter.
Crucial Quote
“We commit to the full decarbonization of all our products and processes by 2050,” said Eni CEO Claudio Descalzi. “Our plan is concrete, detailed, economically sustainable and technologically proven.”
Key Background
Eni joins a growing list of large oil companies that have also pledged to reach carbon neutrality, partly due to pressure from investors, creditors and environmentalists. Europe’s largest oil firm, Royal Dutch Shell, pledged earlier this month to achieve carbon neutrality by 2050 and said that its oil production – which hit a peak in 2019 – will be reduced gradually. Like Eni, Shell seeks to upgrade its renewables business, including its biofuels, and hydrogen businesses. Last May, French oil giant Total also said it wants to reach carbon neutrality by 2050 in its worldwide operations. Total further pledged to reach renewable generation capacity of 25 gigawatts (25 billion watts) by 2025. In early 2020, British oil firm BP also set a 2050 deadline for reaching carbon neutrality. In November, Occidental Petroleum set a net zero target by “mid-century,” making it the first major American oil producer to make such a vow. In December, the largest oil company in the U.S., ExxonMobil announced it planned to reduce greenhouse gas emissions over the next five years in tandem with the goals of the Paris Agreement.
Further Reading
How Blockchain Is Helping Big Oil Optimize For A Carbon-Friendly Future (Forbes)
