Carbon Management Strategy

Eni developed a Carbon Management strategy that combines operational and management initiatives with the development of research into innovative technology.

• achievement of a target to reduce flaring emissions;
• ongoing reduction in GHG emission levels in the various areas of activity (hydrocarbons production, energy generation, refining, and gas transmission);
• design and implementation of programs aimed at achieving ongoing improvements in the efficiency of industrial plants, from processing to production;
• gradual replacement of high carbon content fuels with other cleaner fuels, promoting the use of natural gas in particular;
• research and development of technological options, such as geological confinement, biofixation of CO2 and renewable sources;
• promotion of energy-saving behavior among suppliers, consumers and customers.

Eni's action plan for the mitigation of climate change focuses mainly on reducing gas flaring and increasing energy efficiency.

Furthermore, in order to increase transparency to the outside world and boost the virtuous cycle of reducing emissions, control of indirect emissions (known as "scope 3‘ emissions) will no longer be limited only to emissions arising from Eni's activities, but will also be extended to those linked to products purchased and core contracted activities. Confirming its commitment to the mitigation of climate changes, in 2010 Eni entered the initiative promoted by the Carbon Disclosure
Project in the Supply Chain that will contribute to assessing and managing risks and opportunities related to climate change in the supply chain in order to better direct its choices and measures, in addition to increasing awareness of its carbon footprint, including also indirect emission of greenhouse gas generated by contracted
activities.

In 2010, a calculation method will be established that can be applied to determining the indirect "scope 3‘ emissions from business trips.

As regards reductions in the exploration and production sector, Eni remains committed to reducing gas flaring associated with oil production, aiming to reduce gas flaring by 80% by 2014 compared to 2007 levels. For some of these projects, Eni is also promoting recognition in the context of the flexible mechanisms provided by the Kyoto Protocol, such as the Clean Development Mechanism (CDM). The corresponding gas flaring/venting emissions represent approximately 30% of Eni's total greenhouse gas emissions.