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Climate Change

Climate change has always been focus of attention of the company. We are committed to green and low-carbon development, and conduct environmentally friendly operations, accelerate the upgrading of oil products and promote the utilization of natural gas to meet the need for clean energy. We invest heavily in the R&D of low-carbon technologies and increase carbon sequestration to minimize GHG emissions and mitigate global warming. 

CNPC has included addressing climate change into its development plan. We have begun to formulate the roadmap for low-carbon development and started to establish the carbon emission control system. Specifically, development goals, emission reduction measures and technical routes are set, with a primary focus on carbon footprint verification, carbon emission reduction and the construction of near-zero carbon emission demonstration projects. Hereby our company endeavors to strengthen greenhouse gas management and control, and mitigate carbon dioxide and other greenhouse gas emissions from the sources, production process and product application.

In 2016, we joined the Oil and Gas Climate Initiative (OGCI) and signed the Joint Collaborative Declaration on low-carbon development. We worked with international peers under the OGCI Climate Investment to address challenges of climate change. We also played an active role in developing clean energy, enhancing energy efficiency and promoting the utilization of greenhouse gases. Checking and reporting on greenhouse gas emissions were conducted inside CNPC. A Low-carbon Development Roadmap was formulated based on analysis of the greenhouse gas emissions reduction potential and the corresponding measures across all business segments. R&D efforts were targeted at low-carbon technologies, including CCS-EOR, aviation bio-fuel production and refining energy system optimization.

pollution reduction measures

Accelerating the Use of Clean Energy

Development of low-carbon and clean energy in substitution for oil and coal is a major way to address the climate change. As the advocator and practitioner of low-carbon economy, we actively develop natural gas, coal bed methane (CBM), shale gas, biomass and other low-carbon energy, produce and supply clean products, in an effort to achieve clean production of the products and consumption process. We keep strengthening the construction of facilities for gas exploration and development, and storage and transmission and work hard to promote the development and utilization of both conventional and unconventional gas. We strive to facilitate the substitution of natural gas for oil and coal in urban domestic use, power generation, chemical production, buses and taxis, in order to control emissions of greenhouse gases at the source.

Carbon Emission Reduction in Production

While supplying the society with clean oil products, we also pay much attention to optimizing the energy utilization structure within the Company. Compared with 2010, the proportion of our natural gas consumption in CNPC’s total energy consumption increased by 7 percentage points in 2015; and raw coal consumption decreased by 4.8 percentage points. We also care about carbon emission and carbon footprint during production and operation. In Huabei Oilfield, Tarim Oilfield and other areas, we use renewable energies such as geothermal energy and solar energy to reduce carbon emissions during production.

Specifically, we enhance the comprehensive utilization of resources. Since 2013, we have put emphasis on stopping gas flaring at the remote and isolated wells, producing test wells and gas stations and refineries. By using standardized and integrated series skid-mounted equipment, and improving our techniques, we have continuously improved recovery and utilization of associated gas at Changqing, Tarim, Southwest and other oilfields. By the end of 2015, we have accumulatively recovered 4.39 billion cubic meters of vent gas.

Low Carbon Technology R&D

Focusing on the important role technological innovation plays in addressing climate change, we keep strengthening the R&D of low-carbon technologies, including studies on carbon dioxide flooding and storage, salt water layer and oil deposit carbon sequestration potential evaluation, flue gas CO2 capture at CNPC’s power plants, and other key carbon reduction technologies.

We have enriched and improved a series of technology for CO2 capture, and techniques for site selection and potential evaluation of geological sequestration. As a result, we have successfully evaluated the CO2 sequestration potential in five oilfields including Changqing Oilfield and Liaohe Oilfield. In 2015, we established China’s first CCUS base in Jilin Oilfield which covers the entire industrial chain, including carbon dioxide separation, capture and flooding. As of late 2017, 1.1 million tons of carbon dioxide emissions, or over 96% of the total emissions, were stored using the CCS-EOR technology in Jilin Oilfield.

The research projects on “CO2 EOR and underground storage technology” and “Study on Key Technologies for CO2 Enhanced Oil Recovery and Carbon Dioxide Storage” under the National 863 Program passed the national acceptance inspection in 2013 and 2015 respectively.

Forestry Carbon Sequestration

We actively support carbon sink forest construction and forestation activities in China. In July 2007, CNPC jointly established the Green Carbon Fund with the State Forestry Administration and China Green Foundation (CGF). It is a special national public fund managed by CGF aimed at providing a platform for businesses, organizations and individuals to participate in voluntary activities such as tree planting and forest protection. The fund was launched on the basis of a RMB 300 million donation by CNPC. All money collected shall be used to carry out forestry carbon sink activity. It is estimated that the fund can help absorb and fix 5-10 million metric tons of carbon dioxide over the next 10 years.

In 2008, the first group of CNPC carbon sink forestation projects was piloted in Beijing, Heilongjiang, Gansu, Hebei, Hubei, Zhejiang and Guangdong.In 2011, China Green Carbon Fund worked with Huadong Forest Property Exchange to launch a forest carbon sink pilot in Yiwu, Zhejiang Province. In 2012, we spent RMB 6 million to create a carbon sequestration forest covering an area of 13.33 hectares in Beijing. From 2010 to 2012, we have donated a total of RMB 12 million to Chongqing to create forests in the Three Gorges Reservoir Region.

By the end of 2014, in the carbon sequestration forest project in Xinjiang Oilfield which was started in 2001, 48 million trees had been planted in the desert, covering an area of 986.67 hectares. In 2015, we invested RMB 148.99 million in public-welfare forestation funds and planted over one million trees. As of late 2017, green coverage in CNPC' s production areas reached 293 million square meters, representing a vegetation coverage rate of 43.97%. A total of 649,000 employees voluntarily planted 2.1785 million trees in 2017.

Carbon Transaction

CNPC takes the initiative to promote emission reduction through carbon transaction, especially relying on the jointly established Tianjin Climate Exchange (TCE). The company also participates in the establishment of a market-based mechanism for carbon transactions in China, and has taken part in the discussion of major issues for the formulation of China’s Law on Climate Change. Additionally, we are actively engaged in carbon transactions home and abroad to promote energy conservation.

Tianjin Climate Exchange

In September 2008, we jointly established the Tianjin Climate Exchange (TCE) with the Tianjin Property Rights Exchange Center and the Chicago Climate Exchange, with CNPC owning 53% of its stock. TCE, China's first climate exchange agency, is an international trading platform committed to energy saving and pollution reduction. It trades in credits of major pollutants such as sulfur dioxide and COD as well as energy-efficient products. The energy conservation and emission reduction projects conducted by TCE can save energy of over 200,000 tons of standard coal, equivalent to CO2 emission of over 500,000 tons on a yearly basis.

On December 23, 2008, TCE completed China's first Internet-based trading in sulfur dioxide emission indicators.

In 2011, TCE worked with Pacific Millennium Paper Group Ltd, and the Netherlands CVTD Consultation Company to sign a carbon neutralization and trading contract with the British Standards Institution, and bought 20,000 metric tons of voluntary carbon emission, completing first of its kind in China's mainland based on PAS 2060 carbon neutralization standards.

In 2012, a financing vehicle dedicated to energy-saving service companies was set up jointly by TCE, Shanghai Pudong Development Bank, Industrial Bank, and ESCO Committee of China Energy Conservation Association. We also participated in the discussion of China's Climate Change Response Act in terms of conceptual design, public engagement, legal responsibilities and adoption of international standards.

In 2013, we set up the platform for enterprises to participate in energy saving and emission reduction.

In 2015, we completed the largest CCER (Chinese Certified Emissions Reduction) transaction in China, with a trading volume of 506,125 tons.

In 2016, the China Carbon Market Capacity Building (Tianjin) Center was established to help enterprises in non-pilot areas enhance their capacity in low-carbon development and carbon market participation.

In 2017, technically prepared the initial emission right verification and quota management according to China's planning for the establishment and operation of the carbon emission trading system.

Other Efforts

In November 2013, we completed the first Chinese Certified Emission Reduction (CCER) transaction in China at Beijing Environment Exchange.

In 2013, the Clean Development Mechanism (CDM) Project of Daqing Oilfield was successfully registered with the United Nations, and 400,000 tons of carbon dioxide emission reductions are expected to be sold every year.

Since completing the first international emissions trading in London in 2010, our affiliated company PetroChina International Co., Ltd. has made positive progress in its participation in building China’s carbon transaction market. It has successively completed China’s first carbon emission trading and the Chinese Certified Emission Reduction (CCER) transaction at Shenzhen-based China Emissions Exchange and China Beijing Environment Exchange. In April 2014, the company purchased 10,000 tons of carbon emission quota at Hubei Environmental Resource Exchange Center, the third largest carbon transaction market in the world.

In July 2017, Kunlun Financial Leasing made a RMB 60 million loan to State Power Investment Corporation in support of a MSW-fired power plant project in Bazhou, Hebei. As one of the key eco projects funded by the company, the power plant will receive RMB 200 million in total from Kunlun Financial Leasing to purchase eco-friendly generator sets. After its completion, the project is expected to handle 1,200 tons of municipal solid waste per day for the Beijing New Airport and the Xiong'an New Area in Hebei.

Utilization of Renewable Resources

We keep promoting the evaluation, development and utilization of biomass energy, geothermal energy, wind energy and solar energy, and hydrogen energy, in order to control greenhouse gas emissions at source.

In the Xinjiang and Liaohe oilfields, we have demonstration projects for photovoltaic power generation, wind power generation, and the development and utilization of geothermal resources. In Huabei Oilfield, we conduct pilot tests for the comprehensive utilization of geothermal energy, and have made considerable achievements in geothermal power generation, heating, and heat tracing for oil transportation. Liaohe Oilfield independently developes shallow recirculation technology, enabling the industrial application of geothermal resources, with more than 10 projects completed for applying groundwater source heat pumps. In Tarim Oilfield, we use solar energy to renovate 10 test well stations, which may reduce diesel oil consumption by 1,200 metric tons and cut CO2 emissions by 5,000 metric tons every year, saving over RMB 10 million in fuel costs.