Resolution Criteria

Saudi Aramco has announced its ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. This market resolves based on whether Aramco achieves this target. Resolution will be determined by Aramco's official sustainability reports and third-party verified emissions data. The market resolves YES if Aramco achieves net-zero Scope 1 and Scope 2 emissions by 2050, and NO if it does not. Scope 1 and Scope 2 emissions refer to direct emissions from operations and indirect emissions from purchased energy, respectively—excluding Scope 3 (customer use) emissions.

Background

Aramco has set a target to reduce Scope 1 and Scope 2 greenhouse gas emissions by 52 million metric tons of CO2 equivalent by 2035, while it aims to achieve a 15% reduction in upstream intensity for Scope 1 and Scope 2 emissions by 2035. As a signatory to the Oil & Gas Decarbonization Charter, Aramco has a new interim target to achieve an upstream carbon intensity of 8.6 kg CO2e/boe by 2030. This ambitious goal is being pursued through a comprehensive strategy centered around carbon capture technologies, including direct air capture (DAC) and carbon capture and storage (CCS). The target excludes emissions from customers burning its crude, but is a decade sooner than a government timetable for the kingdom.

Considerations

Aramco plans to emit less CO2 in 2035 than they would in a business-as-usual scenario, accounting for the company's planned growth in hydrocarbon production. In doing so, the reduction is best described as avoided emissions, rather than an actual decline in carbon levels. Most of the reduction is dependent on purchasing carbon offsets and developing CCUS projects.

This description was generated by AI.