In December 2015, nearly 200 contracting parties of the United Nations Framework Convention on Climate Change (UNFCCC) concluded the Paris Agreement during the Paris Climate Conference (COP21). This marks a great step forward in the global efforts to address climate change. On November 4, 2016, the CEO meeting organized by the Oil and Gas Climate Initiative (OGCI) was held in London. The 2016 OGCI Annual Report and OGCI’s Joint Declaration signed by the leaders of its 10 member companies including CNPC Chairman Wang Yilin, were released during the meeting.
Related links: Oil and Gas Climate Initiative (OGCI)
2016 Report -Taking Action:
Accelerating a low emission future
Currently, CNPC is expediting the development and improvement of its Roadmap for Low Carbon Development and increasing its input on R&D of low carbon technology. Meanwhile, we are carrying out comprehensive carbon footprint verification, and setting up the carbon emission management and control system. We will actively exercise the measures proposed in the Joint Declaration, push forward relevant works, and make due contributions to achieve the ambitious goal of OGCI.
Agree with keeping a global temperature rise this century below 2 degrees Celsius;  
Committed to green and low carbon development;
Ready to share GHG control practices with the society;
Promise to play a leading role in the oil and gas industry’s response to climate change.
"Implementing the Paris Agreement requires further promotion of energy supply-side structural reform. OGCI provides an ideal collaborative platform for the world petroleum industry’s low carbon transformation."  
Wang Yilin  
—— 2016 OGCI Annual Report  
Carbon Emission Control
We have incorporated addressing climate change into the company’s development program. CNPC has started to work on the low-carbon development roadmap and emission management and control system with development goals, specific measures, and technical solutions. Focusing on carbon footprint verification, emission reduction and the construction of demonstration projects of near-zero carbon emissions, we aim to cut emissions of carbon dioxide and other greenhouse gases through whole-process control.
  Developing Low-carbon Energies and Advancing Oil Products Upgrade  
  As an advocator and implementer of low-carbon economy, we actively develop conventional natural gas, coalbed methane, shale gas, biomass energy and other low-carbon energies. In 2015, we supplied 122.6 billion cubic meters of natural gas, accounting for 69% of the total natural gas consumption in China.
In recent years, we continue to enhance our capability in the production and supply of clean oil products. The gasoline and diesel we supplied to 11 provinces and cities in eastern China have met the National V standard ahead of schedule.  
We set up the state energy research center for tight oil and gas, and the most advanced CBM laboratory in China. We built up two CBM production bases in Qinshui and Edong areas. In addition, two national demonstration zones for shale gas production have taken shape in Sichuan and Yunnan provinces respectively. The company is capable of producing 3 million tons of ethanol gasoline every year, mainly supplying the Northeast China market. Our aviation biofuel extracted from the fruits of Jatropha, has been used in the flight test successfully, which emits 50% -90% less greenhouse gases in its lifecycle than traditional aviation kerosene.
Implementing Energy-saving and Emission-reduction Projects
We have been continuously accelerating R&D and application of energy saving and emission reduction technologies as well as energy system optimization solution. We kept pushing forward the 10 major energy-saving projects including energy system optimization, substitutes for self-use fuel, and associated gas recovery, as well as the 10 major emission-reduction projects including wastewater treatment and auxiliary pipelines upgrading, and deep treatment and recycling of refining wastewater. By doing so, we aim to minimize our production and operation footprints to environment and society.  
R&D on Low-carbon Technologies
R&D on key carbon emission reduction technologies are carried out, such as CO2 flooding and storage, potential assessment for carbon sequestration in salt water layers and oil reservoirs, and CO2 capture of flue gases from captive power plants. We have established China’s first full-chain CCUS base in Jilin Oilfield, covering CO2 separation, capture and oil displacement with 940,000 tons of carbon dioxide sealed up underground.
Strengthening Carbon Emission Reduction during Production
We pay high attention to improving energy consumption mix throughout the company while supplying clean oil products to customers. Compared with 2010, the natural gas percentage in the total energy consumption of the company went up by 7 percent in 2015; while that of raw coal consumption dropped by 4.8 percent. We also focus on carbon emission control and carbon footprint mitigation during production and operation. In regions where condition permits, renewable energies such as geothermal and solar energy are used to reduce carbon emissions.  
We launched a campaign to stop gas flaring through increased input in R&D. Since 2013, we have focused on putting out gas flaring at remote and isolated wells, testing wells, and gathering stations. By using standardized and skid-mounted equipment, we continuously improved recovery and utilization of associated gas. By the end of 2015, a total of 4.39 billion cubic meters vent gas was recovered.  
  Participating in Carbon Trading Market Development  
  CNPC actively participates in the establishment of market mechanisms for carbon trading. We are the co-founder of the Tianjin Climate Exchange, the first comprehensive carbon trading arm in China. China’s first carbon neutral deal based on standardizing carbon verification was completed in 2009. The first carbon emission reduction (CER) at the energy efficiency market was certified in 2010. CNPC completed the first voluntary emission reduction deal in China in 2011 based on the PAS2060 carbon-neutrality standard. In 2015, we completed the largest CCER (Chinese Certified Emissions Reduction) transaction in China, with a trading volume of 506,125 tons.  
  Promoting Large-scale Forestry Carbon Sink  
  We support carbon sink forest construction and forestation activities of China. In 2008, we launched the carbon sequestration forestry project jointly with the State Forestry Administration (SFA) and seven provinces and cities, and established the China Green Carbon Foundation with SFA in 2010. In 2012, we funded RMB 6 million yuan for 13.33 hectares of carbon sequestration forest in Beijing. From 2013 to 2015, we invested a total of RMB 236.21 million yuan as green funds and planted over 6 million trees.  
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