Repsol announced that it would aim to achieve net zero emissions by 2050, an industry first.
The company is using a 2016 baseline, with 10% reduction by 2025, 20% by 2030, 40% by 2040, and net zero CO2 emissions by 2050. It is possible to achieve at least 70% of this target with the technology that can currently be foreseen, and the company is committed to applying the best available technologies to increase this figure, including carbon capture, use and storage. Repsol would, if necessary, additionally offset emissions through reforestation and other natural climate sinks to achieve zero net emissions by 2050. These figures will form the basis of the company's 2021-2025 strategic plan.
"We are convinced that we must set more ambitious objectives to fight climate change," said chief executive officer Josu Jon Imaz. "We believe now it is the right time for Repsol. We do it with the utmost confidence that we invest for the future. Addressing the significant challenges that lie ahead with strategic clarity is what will allow us to turn them into opportunities. We are convinced that this strengthens our project that is sustainable, attractive and profitable for all our stakeholders."The company is increasing its target for low-carbon electricity generation capacity by 3,000 MW to 7,500 MW by 2025, and will begin to expand into other markets to become a leading international player in renewable energies.
Repsol currently has 2,952 MW in operation and 1,083 MW under development, and the board of directors has approved investments to incorporate and build two photovoltaic and one wind power projects totaling an additional 1,600 MW. With these projects, the renewable power portfolio reaches a total capacity of 5,600 MW.
On the upstream side, Repsol will prioritise value generation over production growth, while maintaining flexibility as the strategic axis of the business, placing emphasis on rotation and improvement of the asset portfolio and on cash generation.
For the assessment of future exploration or production decisions, the company is assuming an oil and gas price curve compatible with the Paris Agreement and the scenario of limiting the temperature increase to well below 2 degrees Celsius.
In its industrial business, with a primary focus on refining, Repsol is raising its decarbonization target, with an additional direct emissions reduction of 25% by 2025. This reduction is on top of the 23% cut in CO2 emissions achieved between 2010 and 2017.Repsol will focus on the circular economy as a tool for the efficient use of resources and will double the production of high-quality biofuels derived from vegetable oils (HVO) to 600,000 tons per year in 2030, half of which will be derived from waste transformation before 2025.
Repsol will also integrate renewable energy into refining operations, which will incorporate production of green hydrogen as well as the use of renewable energy to fuel industrial processes.