Italian energy firm Eni vowed to reduce its oil manufacturing from 2025 and slash its greenhouse fuel emissions by 80% and in one of the most ambitious clear-up drives in business under pressure from investors to go green.
The plan introduced by CEO Claudio Descalzi comes amid pressure on Eni to cut carbon emissions faster and also comes weeks before the Italian government decides whether to reappoint the veteran oilman.
Eni intends to boost its oil and gas production 3.5% a year until 2025; however, then progressively reduce, mainly on crude, to ensure natural gas, which emits less carbon when burnt than oil, covered 85% of its overall production by 2050.
Descalzi, who ran Eni’s exploration unit before becoming chief executive back in 2014, is under pressure to prove he can shift the corporation in the direction of cleaner sources of energy without causing too much damage to profitability.
Senior political sources said this month the government, which controls 30% of Eni, was bending towards giving Descalzi another term – provided he works alongside a new panel to expedite efforts to pare greenhouse gas emissions.
Under its new program, Eni is aiming to pare its greenhouse gas emissions by 80% by 2050 in absolute terms, along with emissions from refined products such as petrol or diesel when they are utilized by customers to drive cars.
While competitors such as Britain’s BP and Spain’s Repsol have also included emissions through their products in carbon targets, Eni went one step ahead.
It’s adding refined products made from oil and gas from third parties, as effectively at its production, which will grow as a percentage, while competitors have vowed to cut emissions from barrels they’ve pumped out of the ground.