Carbon Offset Solutions

Our decarbonization strategy envisages that only about 5% of the total absolute emission reduction by 2050 will be linked to offsetting through carbon credits from Natural Climate Solutions (NCSs)  and the application of technological solutions.

To this end, as part of the ongoing business transformation, we undertake initiatives to generate high-quality carbon credits used to offset residual CO₂ emissions that cannot be abated with current technologies (so-called 'carbon offsetting'). These initiatives are based both on the capacity of ecosystems to sequester and store CO₂ and on the use of technologies to reduce greenhouse gas emissions. According to UN estimates, Natural Climate Solutions have the potential to reduce of GHG emissions by between 5 and 12 billion tonnes of CO₂ by 2030, equivalent to 30% of the reduction needed to keep global warming within 1.5°C compared to pre-industrial times. Gradually increasing the component of credits from so-called CDR - Carbon Dioxide Removal projects will maximise the contribution to achieving carbon neutrality. The role of NCSs in the decarbonization process is also recognised by the Intergovernmental Panel on Climate Change (IPCC), which considers their use as one of the solutions that should be implemented to reduce emissions and remove CO₂ from the atmosphere. NCSs encompass a wide range of actions that not only have a positive impact on climate, but also have significant effects on the ability of local communities and ecosystems to adapt to climate change and represent a tool for sustainable development.

Eni's first activities in the field of NCS were initiated in the area of forest protection, working alongside governments, local communities and UN agencies, consistent with the Nationally Determined Contributions (NDCs), National Development Plans and the Sustainable Development Goals (SDGs).

NCS include initiatives for conservation, restoration and sustainable management of forests, which are in the short term an indispensable element of our decarbonization strategy. Actions for the conservation, restoration and sustainable management of this heritage are part of the REDD+ (Reducing Emissions from Deforestation and Forest Degradation) scheme, defined and promoted by the United Nations (in particular under the UNFCCC - United Nations Framework Convention on Climate Change). In addition to providing activities to reduce emissions and improve the natural storage capacity of CO₂, our projects foster an alternative development model for local communities through the promotion of socio-economic activities in line with sustainable forest management and biodiversity conservation.

In addition, through a strong network of agreements with international developers and partners  (including BioCarbon Partners, Terra Global, Peace Parks Foundation, Carbonsink, Respira International and Unique), we monitor projects for adherence to the principles of the REDD+ scheme, a prerequisite for obtaining the Verified Carbon Standard (VCS) certification. In 2023, Eni offset 3.5 Mt CO₂eq with credits from the Lower Zambezi, Ntakata Mountain in Tanzania, Kulera and Mai Ndombe projects.

The application of technological solutions in various areas is a further lever for offsetting residual emissions. In particular, Eni has initiated projects to promote the adoption of Improved Cookstoves (ICS) for cooking food in energy-poor contexts, and continues to evaluate opportunities in the areas of renewable energy, waste management, and improved agricultural practices, which ensure, in addition to climate change mitigation, significant social and environmental benefits for local stakeholders. Eni has set a goal to give 10 million people in sub-Saharan Africa access to Clean Cooking systems by 2027 and to reach, by encouraging the transition from improved cookstoves to advanced solutions, 20 million people by 2030. The identified initiatives generate high-quality credits, certified according to the highest international standards (Verified Carbon Standard - VCS) and contribute to the achievement of the SDGs (Sustainable Development Verified Impact Standard - SD VISta). In June 2022, Eni started a programme in Côte d’Ivoire to distribute improved cookstoves to vulnerable families. The project envisages the distribution of more than 450 k improved cookstoves over a 7-year period, reaching more than 2 million people. The cookstoves, produced in the country by a local company, reduce biomass consumption and associated emissions and contribute to local development and sustainable value creation. Since the start of the project, about 80 k improved cookers have been distributed, reaching more than 400 k people. The project will generate high-quality carbon credits certified by the international VERRA standard, amounting to over 3 million VCUs (Verified Carbon Units) over the next 10 years. Similar initiatives are active in several countries, including the Republic of Congo, Rwanda and Angola, while two new projects have been launched in Mozambique with the aim of distributing 200 k improved cookstoves in the city and province of Maputo and the provinces of Sofala and Manica. Eni’s plan in the country envisages future projects, starting with the transition to even more efficient cooking systems, called advanced cookstoves, which can achieve zero emissions.