Repsol, Spain, on Monday pledged to reduce its net carbon emissions from its operations and most of its products to zero by 2050 and to bear the 4.8 billion euros ($5.3 billion) in losses on the value of its oil and gas assets in the process, Reuters reported.
Repsol described the move as an industry and said it wanted to steer a broader transition to renewable energy to meet the 2015 Paris Agreement’s goals and avoid catastrophic climate change.
The company’s announcement comes as delegates are holding a United Nations climate summit in Madrid to give new impetus to the agreement, which will enter a critical phase of implementation next year.
Oil and gas producers are under increasing pressure from shareholders and environmental activists to reduce their impact on worsening climate change, and investors have poured money into funds that take into account corporate environmental credentials.
According to Carbon Tracker, a financial think-tank, Repsol’s commitment makes it a different story for larger energy companies that are still investing in oil and gas fields that are not in line with the Paris Agreement’s objectives.
A Repsol spokesman said the new target covers 95 per cent of emissions from the use of products it sells, which are complex in calculations and have become a key issue for shareholders.
These emissions, known as “Scope 3”, are typically about six times the combined emissions from oil companies’ own operations and demand for electricity, according to Reuters calculations.
The company said it would generate an after-tax impairment of 4.8 billion euros in 2019 based on the oil and gas price outlook set out in the Paris Agreement, but would not affect cash flow or shareholder compensation.
Original title: Repsol announces net carbon emissions to zero by 2050