Climate at the top of energy agenda

At the beginning of 2023, India has become the country with the largest population in the world, ahead of China, according to estimates of the independent organisation, World Population Review. Review. India’s concerns about environmental protection therefore are concerns that affect the entire world.

Many environmental problems, such as global warming, ocean acidification and air pollution, are global in scope and nature and require international cooperation to effectively manage them. Without global efforts, these issues will continue to worsen and have an even greater impact on the planet.

As Prime Minister Narendra Modi put it: “We, the present generation, have the responsibility to act as trustees of the rich natural wealth for the future generations. The issue is not merely about climate change; it is about climate justice.” The question of justice and inequality is truly very acute.

It is no secret that energy consumption and its impact on the environment in the rich industrialised countries is much higher than in developing countries — according to UN estimates, top polluting countries per capita include Canada, the US and Germany, while the ones that suffer the most because of environmental issues, are the less economically developed countries, notably India.

And yet, there must be something we are all missing. That is unity. Rather than blaming individual countries, sectors, or companies for climate change, we need to get motivated, come together, and take joint meaningful action.

There are no models, but Russia has the biggest national territory in the world. According to International Energy Agency data published in 2018, Russia emitted 1,587.02 megatons of carbon dioxide, a decrease of 26.65 per cent from 1990. Therefore, it is important to take a closer look at what is happening in Russia right now and what initiatives are being taken by Russian entities, such as Rosneft, a major oil company.

Rosneft has extensive experience in implementing projects in association with its Indian partners. The company supports mutually beneficial cooperation, which is developing in an integrated format, along the entire technological chain — from production to refining and sale of petroleum products.

Since 2016, ONGC Videsh Ltd, Oil India Limited, Indian Oil Corporation and Bharat Petroresources have owned 49.9 per cent of Rosneft’s subsidiary Vankorneft. The company, located in the Krasnoyarsk region, is developing the Vankor oil and gas condensate field, the largest to be discovered and commissioned in Russia in the last 25 years.

A consortium of Indian firms consisting of Oil India Limited, Indian Oil Corporation, and Bharat Petroresources also owns 29.9 per cent in Taas-Yuryakh Neftegazodobycha, which has licences to blocks in the Central Block of the Srednebotuobinskoye field and the Kurungsky licence area. The total payments to Indian partners and dividends from participation in joint projects over the last four years has amounted to about $5 billion.

A member of the UN Global Compact since 2010, Rosneft has become the first Russian company to set for itself the strategic goal to achieve carbon neutrality by 2050 in Scopes 1 and 2.

Thus, an essential part of Rosneft’s corporate strategy is the mechanism of natural absorption of greenhouse gases. In 2022, the company launched the world’s largest climate-related forestry project with the potential to absorb 10 million tonnes of carbon dioxide equivalent.

Russia holds approximately one-fifth of the world’s forest areas, adding up to 763.5 million hectares. Mindful of the fauna as well, the company is conducting comprehensive research on Arctic ecosystems to preserve the unique biodiversity of the area.

According to the company, its flagship Vostok Oil project is among the most environmentally friendly ones in the world. It seems almost impossible to believe that an oil project could be this way. But in terms of its key highlights, it is.

Its carbon footprint is about a quarter of the global average of current industry projects, and the sulphur content in oil from Vostok Oil fields is remarkably low. Therefore, using the most advanced technology, Vostok Oil can claim to be producing ‘green’ barrels.

As part of its efforts to improve carbon management, Rosneft innovates and develops technologies. Looking to achieve zero routine flaring by 2030, all of the company’s key plants already use 99 per cent of associated petroleum gas.

The International Energy Agency estimates methane’s impact on global warming to be 25 times greater than that of carbon dioxide. That is why cutting methane emissions is so crucial to combating climate change.

A member of the Methane Guiding Principles initiative, Rosneft is working to reduce methane emissions from the natural gas supply chain. Rosneft specialists have developed a corporate methodology for quantifying methane emissions at hydrocarbon production facilities and also designed a lab to convert methane into synthetic liquid hydrocarbons.

To wrap it up, Rosneft’s environmental action has been recognised by international rating agencies, including RAEX-Europe, Bloomberg, Sustainalytics and CDP (Carbon Disclosure Project). It was among the top ten industry leaders of Refinitiv, the Best Emerging Market Performers Ranking, and the FTSE4Good Index Series.

These initiatives are aimed at making positive changes. They have not only been beneficial to the environment, but they have also improved operating efficiency. The global community must work for peace in nature to make our world a better place.




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