Equinor Targets Net Zero by 2050

Norway's Equinor announced on November 2 its "ambition" to become a net-zero greenhouse gas emissions company by 2050, while projecting that global demand for oil and gas will begin a gradual decline from 2030. The announcement was made the same today as Anders Opedal took over as the producer's CEO, following the resignation of Eldar Saetre.

"Equinor is committed to being a leader in the energy transition. It is a sound business strategy to ensure long-term competitiveness during a period of profound changes in the energy systems as society moves towards net zero," Opedal said in a statement. "Over the coming months, we will update our strategy to continue to create value for our shareholders and to realise this ambition."

Equinor unveiled plans to reduce emissions to almost zero by 2050 earlier this year, with 40% and 70% reductions targeted by 2030 and 2040. The company's new target covers scope 1, 2 and 3 emissions.

Equinor aims to ramp up its renewable energy capacity to 4-6 GW by 2026 and 12-16 GW by 2035, and pick up the pace of acquisitions in the wind sector. It is also developing carbon capture and storage and hydrogen production projects in Norway and the UK.

At the same time, the company is targeting annual growth in oil and gas production of around 3% between 2019 and 2026. But it sees global hydrocarbon demand beginning a gradual descent from 2030. An expanding share of oil and gas will be used for producing petrochemicals over the coming decades, it said, meaning less will emit carbon through combustion.

"Value creation, not volume replacement, is and will be guiding Equinor's decisions. In the longer term, Equinor expects to produce less oil and gas than today," the company said.

Climate change is "a shared challenge," Opedal said, calling on governments, industries, investors and consumers to work together to reach net-zero emissions.