We acknowledge the significant challenge posed by climate change and will become carbon neutral from 2023
Oil and gas will remain a major energy source for decades to come. Lundin Energy recognises that demand for hydrocarbons is expected to continue rising to meet the needs of a growing global population. Oil will still comprise a significant portion of the energy mix in 2040, alongside other forms of energy. Over this same time frame, to meet climate targets set out in the Paris Agreement, global annual greenhouse gas emissions will need to be halved. It is therefore critical to decarbonise the production of oil and gas as much as possible. We believe that every player in the value chain must take responsibility for their own operational carbon emissions, including us.
This is the core aim of Lundin Energy’s strategy and why our carbon neutral target includes the carbon emissions that we can influence.
We support the objectives of the Paris Agreement
We all have common but differentiated responsibilities towards meeting the climate challenge. We recognise the challenge posed by climate change and the role that forward-thinking oil and gas companies like us must play in addressing it. We acknowledge that the global response to climate change should include efforts to limit the temperature increase to 1.5 degrees and to reach a global peak of greenhouse gas emissions as soon as possible, as set out in the Paris Agreement.
This is why we advocate for effective carbon policies and carbon taxes. Norway has among the highest environmental taxes in the world, and in addition to these, we pay for CO2 quotas under the EU Emissions Trading Scheme. In addition, we support the wider industry to decarbonise, for example by investing in low-carbon technology businesses through the Lundin Foundation.
Not all barrels are produced equally
Lundin Energy operates with one of the lowest carbon intensity levels in the industry – about a sixth of the industry world average. By 2023, we aim to produce oil at around 1 kg CO2 per barrel. If all oil in the world was produced this way, it would save more than 2 billion tonnes of CO2 per year, equivalent to removing over 1 billion passenger cars from the road.
Through our Decarbonisation Strategy, we are targeting carbon neutrality from 2023 across our operations. Our carbon neutral goal includes the emissions that we can influence, which is why we focus on our net Scope 1 and 2 emissions as a priority as well as our Scope 3 supply chain emissions.
Our carbon neutrality target will strengthen our position as one of the most sustainable oil companies providing the best barrel in the world: safe, responsible, low cost and low emissions. Our key actions are also outlined in our Climate Change Statement.
Supporting development of a low-carbon industry
Lundin Energy Norway has an extensive R&D programme, supporting projects which look at new technology and equipment to increase the effectiveness of oil and gas operations and low-carbon emission technology.
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