China National Petroleum Corporation (CNPC)

Despite having a Green Development Action Plan, CNPC has not made any public commitments to reduce emissions. The company should develop ambitious targets for reducing its scope 1 and 2 and scope 1, 2 and 3 emissions intensities to drive business strategy and demonstrate the company’s alignment with its 1.5°C pathway.

Although the company’s annual report mentions its aim to increase its low-carbon product sales, no evidence was found to demonstrate such an increase. There is also no evidence that the company is decarbonising its product offering by providing energy efficiency services to its customers.

CNPC has started to use renewable energy, such as geothermal and solar energy, at a few of its oil and gas fields. The company has also initiated research in carbon mitigation technologies and in carbon sequestration. CNPC can add credibility to its low-carbon transition plan through further disclosure on its plans for developing low-carbon business activities and growing its low-carbon technologies and research.

Although CNPC has made a commitment to reduce emissions, the company has not set specific targets for reductions in its scope 1 and 2 or its scope 1, 2 and 3 emissions. CNPC is financing low-carbon innovation in its supply chain technology under the Oil and Gas Climate Initiative’s (OGCI’s) USD 1bn+ climate investment fund.

CNPC has strategic goals to achieve a higher proportion of renewable energy in its domestic primary energy output by 2030, and to increase this further by 2050. However, the company does not indicate the specific proportion that it targets to achieve. The company has indicated plans to reach 10% capital expenditure (CapEx) in research and development (R&D) by 2030 to reduce missions. However, the company provides only limited financial information about its low-carbon transition plan.

CNPC plans to reduce its emissions, and undertake carbon capture and carbon sequestration. The company has stated goals to continue its development of geothermal, biomass, and hydrogen energy.

Between 2014 and 2019, CNPC has been slightly increasing the proportion of gas in its energy mix. However, the beneficial impact of increasing gas on the company’s scope 1 , 2 and 3 emissions intensity is reversed by its growing scope 1 and 2 emissions intensity owing to extraction in more emissions intense regions and an increase in the use of emissions intensive refining technologies. CNPC has also increased the proportion of oil that it refines using technologies with higher emissions intensity.

CNPC does not report detailed emissions reduction targets or a long-term transition plan, despite its stated commitment towards a low-carbon transition.