Petroecuador

EP Petroecuador has not set targets to reduce its emissions intensity or absolute emissions. National oil companies such as EP Petroecuador need to transition their businesses to become national energy companies compatible with a low-carbon economy. For this, the company needs to set long-term and regularly spaced intermediate targets for emissions reduction that cover its total emissions impact, including its scope 3 emissions, to hold its management accountable for the decarbonisation actions needed in the short, medium and long term.

There has not been a significant shift in the oil and gas proportions of EP Petroecuador’s sold product mix between 2014 and 2019. This suggests that the company’s scope 1, 2 and 3 emissions intensity has remained stable. With no sign of an increasing share of low-carbon products such as renewable power generation or energy efficiency services in the company’s sold product mix, it is currently making no progress towards readying itself for a low-carbon economy. EP Petroecuador is likely to significantly diverge from its 1.5°C pathway, which requires an annual scope 1, 2 and 3 emissions intensity decrease of around 4% until 2024.

EP Petroecuador has not developed business activities to drive its energy mix to low-carbon energy, to reduce energy demand or to develop carbon capture and storage (CCS) and negative emissions technologies (NETs). The company needs to apply its energy expertise to take advantage of new renewable energy technologies and broaden its business activities to remain profitable in a low-carbon economy.

EP Petroecuador has made no low-carbon commitments and has no climate strategy or transition plan.

EP Petroecuador has not announced a low-carbon transition plan and does not provide information regarding its emissions reduction targets or renewable energy capacities.

There is no indication that EP Petroecuador is allocating capital or investing in research and development (R&D) to deploy technologies to achieve emissions reduction and mitigate climate change.

Between 2014 and 2019, EP Petroecuador’s scope 1 and 2 emissions intensity decreased, mainly driven by a decreasing share of its oil operations in Venezuela, which is an emissions-intensive region. However, this decrease is not sufficient for the company to be aligned with its 1.5°C pathway.

The absence of near- and long-term emissions reduction targets, detailed plans for developing low-carbon business activities as well as lack of transparency, suggest EP Petroecuador is neither ready for nor committed to the low-carbon transition.