Finnish Refiner Says It Won't Meet 2035 Oil Exit Goal
Finland’s Neste Oyj is scaling back some of its climate targets and doesn’t expect to stop using crude at its only oil refinery by 2035 as previously guided.
Neste had pledged a “very ambitious” target for achieve carbon neutral production by that year, but it now expects to reduce greenhouse gas emissions in its own operations — known as Scope 1 and 2 — by 80% by 2040, according to a statement on its website. Neste’s share rose.
Reaching the original climate targets and schedule “would have required significant investments that are currently not realistic,” the company said. “The timeline for transitioning from crude oil to processing renewable and circular raw materials will be determined in line with the actual fuel market demand.”
The bulk of Neste’s climate goals were put in place under the company’s previous chief executive officer. Heikki Malinen, who took over in 2024, had already said that a target on using waste plastics in the Porvoo refinery had been put on hold.
Neste’s share advanced as much as 3.9% to €19.03 as of 12:36 p.m. local time.
Neste is set to benefit from decisions taken last week by the German government that are expected to boost demand for renewable diesel, one of its main products.
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