Net zero emissions by 2050
Roadmap towards decarbonization
The main purpose of the new Strategic Plan 2021-2025 is to help us become a net zero emissions company by 2050, in line with the targets set out in the Paris Agreement on climate change. To continue to make successful progress towards this goal, our company has set itself a demanding roadmap, which includes ambitious emissions reduction targets.
During Low Carbon Day, which was held in October 2021, we announced an increase in our intermediate decarbonization target and a reduction in the Carbon Intensity Indicator of 15% in 2025, 28% in 2030, and 55% in 2040, compared to the 12%, 25%, and 50%, respectively, set previously.*
* Our metric refers to the use of products obtained from our primary energy production. It is a rational approach to establish a common sectoral framework for all O&G companies along their value chain, without double counting emissions and focused on the progression of the primary energy mix as the key driver of the energy transition towards zero net emissions.
Other methodologies used by various stakeholders consider products sold instead of primary energy production, regardless of whether the volume of products obtained from the company's primary energy is higher or lower than the volume of products sold. For the sake of transparency, we have applied this methodology by calculating the products sold going forward according to our projection of their demand, leading to the following decarbonisation pathway in terms of percentage reduction in carbon intensity: 7% in 2025, 14% in 2030, 38% in 2040, and 74% in 2050.
Carbon Intensity Indicator
In response to our need to move towards a business model compatible with the Paris Agreement in order to achieve net zero emissions by 2050, we developed this Carbon Intensity Indicator (CII), expressed in g CO2eq/MJ (CO2 emissions by energy unit we place at the service of society).
This indicator enables us to define reduction objectives, support strategic and investment decision-making, and monitor the progress.
Five levers to reduce carbon intensity
At Repsol, we see decarbonisation as an opportunity to develop more profitable businesses, an opportunity to continue growing and to become in this decade the multi-energy company that society needs to meet all its needs sustainably.
Low carbon fuel and circular economy
We will produce 1.3 million tonnes in 2025 and more than 2 million tonnes in 2030 of sustainable biofuels. At Repsol, we are committed to a business of efficient products, focused on the circular economy and the production of advanced biofuels.
Low carbon power generation
Technological developments and sinks
Carbon capture, use and storage technologies play an important role in Repsol's decarbonisation strategy. We also promote other initiatives, such as emission compensation projects through reforestation.
Industrial transformation to move towards decarbonisation
In our refining area, we have initiated a transformation process that will enable us to turn our refineries into multi-energy hubs, which in the short term will be able to process alternative feedstocks to generate fuels and materials with a low carbon footprint. Technology will make it possible, for example, to use urban, agricultural, forestry or agri-food industry waste to produce advanced biofuels. In addition, renewable hydrogen and CO2 captured in the refineries themselves will be used to make synthetic fuels. Both of these low-carbon products will be essential for the mobility of the future.
Designing efficiently, controlling the impact that our project may have and, ultimately, making an appropriate decision for our current and future investments. It allows the energy transition to be managed in an orderly manner with the minimum cost for the consumer. In addition, it encourages companies to reduce their emissions.
Setting a global carbon price and applying it equally to all sectors is the best tool for the transition toward a low-emissions future.
Review of participation in industry initiatives
We work to ensure that all partnerships and initiatives in which it participates are aligned with meeting the goals of the Paris Agreement.
At the forefront of the fight against climate change
By 2030, we'll be more sustainable
and focused on value creation.