Eni pledged on Friday to reduce its oil production from 2025 and slash its greenhouse gas emissions by 80% and in one of the most ambitious clean-up drives in an industry under pressure from investors to go green.
The plan announced by Chief Executive Claudio Descalzi comes amid pressure on Eni to cut carbon emissions faster and also comes just weeks before the Italian government decides whether to reappoint the veteran oil man.
Eni plans to boost its oil and gas production 3.5% a year until 2025 but then progressively cut back, mainly on crude, to ensure natural gas, which emits less carbon when burnt than oil, made up 85% of its overall output by 2050.
“The result will be a portfolio that is more balanced and integrated and will be stronger for its adaptability and competitive shareholder remuneration,” Descalzi said.
Under its new plan, Eni is aiming to cut its greenhouse gas emissions by 80% by 2050 in absolute terms, including emissions from refined products such as diesel or petrol when they are used by customers to drive cars, for example.
While rivals such as Britain’s BP and Spain’s Repsol have also included emissions from the use of their products in carbon targets, Eni went one step further.
It is including refined products made from oil and gas from third parties, as well at its own production which it says will grow as a percentage, while rivals have only pledged to cut emissions from barrels they have pumped out of the ground.
Others, such as Total and Royal Dutch Shell, have focused on cutting the amount of carbon emitted by each unit of energy they produce. Technically, that means their headline target measures could fall even though their absolute emissions rise with increased production.
“If you can’t deliver green products you’re going to lose your customers very quickly,” Descalzi said.