Malaysia's Petronas targets net zero emissions by 2050

KUALA LUMPUR: Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, said on Thursday it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy.

Burning of oil and gas accounts for the vast majority of the world's carbon emissions, and many investors have pushed global oil majors to do more to combat climate change.

Petronas, the world's fourth-largest exporter of liquefied natural gas, said it will intensify its efforts toward reducing the so-called Scope 1 and Scope 2 greenhouse gas emissions, referring to direct emissions from operations and the electricity used by the company.

The company, a significant source of revenue for the federal government, also said it will pursue new avenues of revenue generation via investments in nature-based solutions and set up greater accessibility to clean energy solutions.

Petronas, the sole custodian of Malaysia's oil and gas reserves, is also engaged in exploration and production activities overseas. It also produces petrochemicals.

The Malaysian firm's 2050 target is in line with peers BP and Shell - though the companies have marked varying goals to strengthen their green ambitions. Some have even committed to reducing Scope 3 emissions from the final consumption of their products.

Petronas has made a push towards renewable energy in recent years and also acquired a Singapore-based solar energy company in 2019.

Earlier this year, Petronas said it was looking to expand its renewable energy portfolio after posting its first quarterly loss in nearly five years following a coronavirus-related demand slump and lower oil prices.