Equinor sets ambition to reduce net carbon intensity by at least 50% by 2050
Equinor has launched its new Climate Roadmap aiming to ensure a competitive and resilient business model in the energy transition, fit for long term value creation and in line with the Paris Agreement.
Equinor aims to:
reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050,
grow renewable energy capacity tenfold by 2026, developing as a global offshore wind major, and
strengthen its industry leading position on carbon efficient production, aiming to reach carbon neutral global operations by 2030.
Equinor’s strategic direction is clear. We are developing as a broad energy company, leveraging the strong synergies between oil, gas, renewables, CCUS and hydrogen. We will continue addressing our own emissions in line with the emitter pays principle. But, we can and will do much more. As part of the energy industry, we must be part of the solution to combat climate change and address decarbonisation more broadly in line with changes in society
Eldar Sætre - President and CEO Equinor
The ambition to reduce net carbon intensity by at least 50% by 2050 takes into account scope 1, 2 and 3 emissions, from initial production to final consumption. By 2050 each unit of energy produced will, on average, have less than half of the emissions compared to today. The ambition is expected to be met primarily through significant growth in renewables and changes in the scale and composition of the oil and gas portfolio. Operational efficiency, CCUS and hydrogen will also be important, and recognised offset mechanisms and natural sinks may be used as a supplement.
* Natural sinks, biofuels and others
Industry-leading carbon efficiency
<8 kg CO2/boe
Ambition for operated emissions intensity
Carbon neutral operations
Ambition for absolute greenhouse gas emissions from operations in Norway
For a breakdown of all our ambitions please refer to the Climate Roadmap available above
The scale and composition of Equinor’s oil and gas portfolio, and the efficiency of its operations, will play a key role in achieving Equinor’s net carbon intensity ambition. Carbon efficient production of oil and gas will increasingly be a competitive advantage, and Equinor will seek to ensure a high value and robust oil and gas portfolio. Equinor already has one of the industry’s lowest carbon intensities and now aims to reduce this further.
We aim to reduce the CO2 intensity of its globally operated oil and gas production to below 8 kg per barrel of oil equivalent by 2025, five years earlier than the previous ambition. The current global industry average is 18 kg CO2 per barrel (IOGP average, Environmental Performance Data 2018).
We are also setting a new ambition to reach carbon neutral global operations by 2030. The main priority will be to reduce greenhouse gas emissions from own operations. Remaining emissions will be compensated either through quota trading systems, such as EU ETS, or high-quality offset mechanisms. By setting this ambition, Equinor demonstrates its long-standing support to carbon pricing and the establishment of global carbon market mechanisms as outlined in the Paris Agreement.
In Norway, we have announced an unprecedented set of ambitions to reduce absolute greenhouse gas emissions from its operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and towards near zero by 2050. The ambition can be realised through electrification projects, energy efficiency measures and new value chains such as carbon capture and storage and hydrogen.
We are also one of the industry leaders in reducing flaring and methane emissions, and we aim to keep methane emissions at near zero and to eliminate routine flaring by 2030.
Profitable growth in renewables
Ambition for equity share of installed
capacity by 2026
Ambition for equity share of installed
capacity by 2035
The renewable market is changing and growing at unprecedented pace, presenting opportunities for decades of growth. Equinor has a strong renewable portfolio in production, and we are leveraging our core competencies in managing complex oil and gas projects when growing in offshore wind.
In 2026, Equinor expects a production capacity from renewable projects of 4 to 6 GW, Equinor share, mainly based on the current project portfolio. This is around 10 times higher than today’s capacity, implying an annual average growth rate of more than 30%. Towards 2035, Equinor expects to increase installed renewables capacity further to 12 to 16 GW, dependent on availability of attractive project opportunities.
Accelerating decarbonization for society
Engagement with other sectors to accelerate decarbonisation
Develop a European value chain for CCUS
Large-scale opportunities for zero emission energy
More than 85% of emissions from fossil fuel products come from their consumption, such as in combustion engines. To achieve the ambitions of the Paris Agreement, society must address emissions across the value chain from production to final use. Equinor believes we have a role to play in addressing emissions across the life-cycle and plans to do so by collaborating closely with other industrial sectors.
“In order to combat climate change, governments, business and society must find new and sustainable solutions together. As a pioneer in CCUS, Equinor is engaged in building a European value chain, capturing and storing CO2 from third-party industrial sites. This, combined with a strong position within natural gas, makes Equinor prepared for future growth in hydrogen, which offers large scale opportunities for zero emission energy,” adds Sætre.
As a leader in CCUS, Equinor is working to build a European value chain, capturing carbon from third-party industrial sites. Combined with the strong position in natural gas, Equinor is prepared for future growth in hydrogen, which offers large scale opportunities for zero emission energy while leveraging existing infrastructure.