Neste's new strategic climate targets to reduce emissions

Climate solutions Sustainable fuels

As part of Neste’s renewed strategy, the company introduced two new ambitious climate targets: (1) To reduce customers’ greenhouse gas emissions with its renewable and circular solutions by at least 20 million tons CO2eq annually by 2030; (2) To reduce the carbon footprint of Neste’s production ahead of EU’s climate and energy targets.

Customers’ greenhouse gas emissions reduction accelerated

Over the past ten years, Neste has focused on producing renewable fuels to replace fossil fuel use. In 2018, Neste’s renewable products helped customers to reduce greenhouse gas emissions by 7.9 Mt CO2eq, equaling the combined annual carbon footprint of 1.2 million average EU citizens (source: World Bank). Neste is now committed to help its customers reduce GHG emissions by at least 20 Mt annually by 2030. This reduction corresponds to the combined annual carbon footprint of over 3 million average EU citizens.

“Our flagship product Neste MY Renewable DieselTM will continue to help reduce transport-related emissions, while we are starting to make a significant positive climate impact in aviation with Neste MY Renewable Jet FuelTM. 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,“ says Peter Vanacker, President and CEO from Neste.

In order to expand its renewables offering to new industries and markets, Neste announced in December 2018 that it is investing EUR 1.4 billion to increase its renewable products production capacity in Singapore. This brings the company’s total renewable product capacity close to 4.5 Mt annually in 2022 from the 2.9 Mt today, and enables Neste to double its GHG reduction impact from the 2018 level. Combined with Neste’s ambition to expand its production capacity even further in the long term, and its aims to introduce chemically recycled, liquefied plastic waste as a raw material for fuels, chemicals and new plastics in the upcoming decade, the company believes its ambitious emission reduction target can be reached

Reducing the carbon footprint of Neste’s production while increasing production capacity

“We are in the business of reducing emissions and accelerating circularity in society. Although we aim to be faster and bolder in developing our business, 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,“ Vanacker says.

“Furthermore, we are currently evaluating our existing production facilities and identifying the most efficient ways to reduce our carbon footprint ahead of the EU's climate and energy targets. Although we are very much still in a planning phase, we know we will continue focusing on energy efficiency. The new combined heat and power plant scheduled for commissioning in 2019 in Porvoo will naturally contribute. While we are still working on a more detailed plan, our strategic direction is clear,“ Vanacker clarifies.