Climate change is a global challenge, and responding to it calls for a number of parallel approaches.
We support both global and local efforts to reduce climate emissions. We do this with our portfolio of renewable, low-emission and circular solutions for transportation, aviation, and marine uses, as well as for the chemical and plastics industries. We also aim at managing and minimizing on the emissions from our production.
In 2019, we set ourselves two new ambitious climate targets:
- To reduce our customers’ greenhouse gas emissions with its renewable and circular solutions by at least 20 million tons CO2eq annually by 2030
- To reduce the carbon footprint of Neste’s production ahead of EU’s climate and energy targets.
Emissions reduction provided by our renewable products compensates for the emissions from our production
Over the past ten years, Neste has focused on producing renewable fuels to replace fossil fuel use. Our role in reducing transportation-related climate emissions is already significant on a global scale. In 2018, our premium-quality renewable products, particularly Neste MY renewable diesel™, helped our customers reduce global climate emissions by 7.9 million tons. This equals the annual emissions of 3 million passenger cars or the carbon footprint of 1.2 million average EU citizens (Source: World Bank).
Our 2030 target to reduce emissions, on the other hand, corresponds to the combined annual carbon footprint of over 3 million average EU citizens.
Neste MY Renewable Diesel reduces transport-related emissions and Neste MY Renewable Jet Fuel those from aviation. Our renewable and circular plastics solutions will, in turn, help polymers and the plastics consuming industries reduce their crude oil dependence and climate impact. All of these will directly and significantly contribute to reducing fossil-based greenhouse gas emissions globally in the upcoming years.
We announced in December 2018 that we are investing EUR 1.4 billion to increase our renewable products production capacity in Singapore. This brings our total renewable product capacity close to 4.5 Mt annually in 2022 from the 2.9 Mt today, and enables us to double our GHG reduction impact from the 2018 level. Combined with our ambition to increase production capacity even further in the long term, and aim to introduce chemically recycled, liquefied plastic waste as a raw material for fuels, chemicals and new plastics in the upcoming decade, we believe our emission reduction target can be reached.
Carbon footprint of products – close monitoring from end to end
We calculate the carbon footprint of our products over their entire life cycle, from the production of the raw materials they are refined from to their end-use. The use of our Neste MY Renewable Diesel™, for example, helps reduce greenhouse gas emissions by 50–90% compared to fossil diesel. Its use will not add any fossil-based greenhouse gas emissions to the atmosphere.
Read more about the carbon footprint of our products.
Ambitious targets to reduce the carbon footprint of our production
The climate savings that Neste’s renewable products offer annually are more than twice as large as the annual emissions from Neste’s fossil and renewable refineries' operations and all logistics put together.
Although we aim to make an even more significant positive climate impact with our products, we will not push for production capacity growth without keeping a close eye on the direct climate impact of our refining. We aim to utilize the best available technology to keep our emissions in control when we deploy our new capacity.
We are currently evaluating our existing production facilities to identify the most efficient ways to reduce our carbon footprint ahead of the EU's climate and energy targets. We will continue focusing on energy efficiency. The new combined heat and power plant scheduled for commissioning in 2019 in Porvoo will also contribute. While we are still working on a more detailed plan, our strategic direction is clear.