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%.
In addition to the 2035 objectives, the Company will continue the search for additional opportunities to achieve net carbon neutrality by 2050.