Jun 29, 2022
Chinese Oil Giant Brings Forward Its Key Carbon Deadlines
(Bloomberg) -- China National Offshore Oil Corp. said it will increase spending on clean energy so that its carbon emissions peak by 2028, while also bringing forward its net-zero deadline to 2050, according to the company’s climate action plan released Wednesday.
The offshore oil and gas giant’s spending on renewable energy will account for 10%-15% of its total over 2026-2030, from a range of 5%-10% announced last year for the period through 2025. The emissions counted will only be the company’s own, and won’t include those generated by the customers of its fossil fuels.
Cnooc said it will lift clean energy to more than half of its total output by 2050, the year when it now intends to become carbon neutral. The pledge on peak emissions is an advance of two years on both its prior target and the national schedule. The net-zero goal is a full decade ahead of its previous plan and President Xi Jinping’s deadline for China as a whole to become carbon neutral.
Under its new plan, Cnooc also said that by 2025 it would cut company-wide CO2 emissions by 10%-18% per unit of output compared to 2020 levels.
China’s big three state oil and gas companies, which include Cnooc, China National Petroleum Corp. and Sinopec Group, have all set individual climate targets, although there’s no detailed plan as yet for the industry as a whole. That’s in contrast to China’s power generators, which have committed to government-mandated cuts to emissions as part of the national carbon market.
China’s fears over energy security been amplified by the spike in international prices caused by Russia’s invasion of Ukraine, and the government has turned to domestic producers to raise their output of fossil fuels. At the same time, firms are taking steps to mitigate the impact of the extra greenhouse gases that entails.
The measures taken by Cnooc, which saw its emissions rise 10% to 10 million tons last year, have included speeding up the development of its wind and solar capabilities. The company also announced earlier this week that it has teamed up with Exxon Mobil Corp. and Shell Plc to develop a massive carbon capture facility in Guangdong province.
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