Russia’s largest oil company Rosneft is spending about 5% of its investment budget each year on climate goals, and plans to increase this in the future, a senior official said at an online news conference.
Spending on climate initiatives could reach as much as $670 million this year, according to Reuters calculations based on Rosneft anticipating 2021 capital expenditure of up to 1 trillion roubles ($13.5 billion), compared with 800 billion roubles in 2020.
Rosneft last year pledged to invest around $5 billion in environmentally-friendly projects within five years. It announced the plan after Britain’s BP, which owns a 19.75% stake in the Russian company, pledged deep cuts to its carbon emissions by 2050, setting one of the oil sector’s most ambitious targets.
“On average, green investments account for around 5% of our total investment programme. We expect this share to grow in the future,” Rosneft Vice President and head of strategy and investment governance, Alexei Salin, said in comments cleared for publication on Friday.
Rosneft’s climate goals include shrinking methane emissions intensity to below 0.25% and cutting greenhouse gas emissions by 20 million tonnes in CO2 equivalent by 2035, according to the company’s Carbon Management Plan, which does not give current levels for comparison.
The world’s second-biggest oil producer behind Saudi Aramco plans to increase gas production to more than 25% of total hydrocarbon output by the end of 2022, compared to 20% in 2020