The global energy sector is at a turning point. Historically, energy production has been one of the largest contributors to greenhouse gas (GHG) emissions – accounting for over two-thirds of the world’s total. This is primarily due to the sector’s heavy reliance on fossil fuels like coal, oil, and natural gas. However, the urgent need to combat climate change has placed immense pressure on energy companies to align with the goals of the Paris Agreement, and transition toward sustainability.
The stakes couldn’t be higher – Achieving “net-zero emissions”—balancing emitted greenhouse gases with an equal amount removed from the atmosphere—has emerged as the gold standard for companies aiming to align with global climate goals. Achieving net zero is an imperative for limiting global warming to 1.5°C and ensuring a sustainable future. It’s a corporate responsibility as well as an economic and regulatory necessity.
For decades, the energy industry has been seen as a major part of the problem when it comes to carbon emissions. Now, it has the opportunity to become part of the solution. The transition away from fossil fuels is happening at an unprecedented pace, driven by policy shifts, technological advancements, and market demand for cleaner energy. As the world moves toward a decarbonized future, energy companies are faced with a critical question: Adapt or be left behind?
This article explores three companies—ENI, Terpel, and Engie—that are redefining what it means to be a leader in the energy transition. Each of these organizations comes from a different segment of the industry, but all share a common goal: to drive innovation and investment in sustainable energy solutions.
- ENI, an oil and gas giant, is leveraging renewables and carbon capture technologies to transform its operations.
- Terpel, a fuel distribution company, is pioneering clean mobility solutions in Latin America.
- Engie, a global utility leader, is scaling up investments in wind, solar, and hydrogen to accelerate the shift to clean energy.
Eni: An Integrated Approach to Carbon Neutrality by 2050
Few names in the energy industry are as closely associated with oil and gas as ENI. Founded in 1953, this Italian multinational has spent decades as a major player in the fossil fuel sector, with operations spanning over 60 countries. Historically, ENI’s business relied heavily on crude oil extraction, refining, and natural gas distribution—making it one of the world’s largest emitters of greenhouse gases. But as the global energy landscape shifts toward sustainability and net zero, ENI is facing a critical challenge: how to transition from fossil fuels to clean energy without compromising its core business.
The Challenge: A Carbon-Intensive Legacy
ENI’s extensive operations mean its carbon footprint is vast. From oil drilling in Africa to gas pipelines in Europe, the company has long contributed to Scope 1, 2, and 3 emissions—the three categories used to measure corporate climate impact. Scope 1 includes direct emissions from its facilities, Scope 2 accounts for electricity used in operations, and Scope 3 covers emissions from customers burning its fuel. To truly become a net-zero company, ENI must tackle all three scopes, which is no small task.
The Pressure: Global Scrutiny and Regulatory Challenges
As global climate action ramps up, oil and gas majors like ENI face growing scrutiny. European regulators are enforcing stricter carbon pricing, while climate-conscious investors are questioning the long-term viability of fossil fuel businesses. Shareholders are demanding a clear transition plan, and environmental groups continue to call out ENI’s past reliance on oil profits.
At the same time, competitors are moving fast—companies like BP and Shell have already made high-profile renewable energy investments. If ENI doesn’t act quickly, it risks falling behind in the race to a low-carbon future.
The Solution: A Multi-Faceted Net-Zero Strategy
Recognizing the urgency, ENI has pledged to achieve net-zero emissions by 2050. To reach this goal, it is fundamentally reshaping its business by investing in renewables, carbon capture, and cleaner fuels.
1. A Massive Push into Renewables
ENI has committed to installing 60 GW of renewable energy capacity by 2050, with significant investments in solar, wind, and biofuels. Some key projects include:
- Offshore wind farms in the North Sea and Mediterranean.
- Large-scale solar plants across Europe and Africa.
- Biofuel production—converting old oil refineries to produce fuel from plant-based sources instead of crude oil.
To accelerate its green energy expansion, ENI is also forming strategic partnerships with renewable energy companies and acquiring stakes in clean energy startups.
2. Advancing Carbon Capture and Storage (CCS)
Since oil and gas aren’t disappearing overnight, ENI is betting big on Carbon Capture and Storage (CCS) as a transitional solution. The company is developing one of Europe’s largest CCS projects in Ravenna, Italy, which aims to capture and store millions of tons of CO₂ underground. By using CCS, ENI hopes to mitigate the emissions from its remaining fossil fuel operations while renewable energy capacity scales up.
3. Reducing Scope 3 Emissions with Low-Carbon Products
Most of ENI’s emissions come from the use of its fuels—when customers drive cars, fly planes, or heat their homes with its gas. To address this, ENI is:
- Expanding its biofuel and synthetic fuel offerings.
- Developing hydrogen fuel projects to replace traditional gasoline.
- Working with automakers and airlines to introduce lower-emission transportation solutions.
By shifting toward cleaner fuels, ENI is positioning itself as a long-term energy provider in a world where oil demand is expected to decline.
Taking Action: Measuring Progress and Accountability
ENI’s net-zero strategy isn’t just about promises—it’s about measurable action. The company has set interim targets to cut emissions by 35% by 2030 and 80% by 2040 (compared to 2018 levels). It publishes detailed climate reports to track its progress, ensuring transparency and accountability.
But challenges remain. Critics argue that ENI still invests too much in oil and gas, with CCS seen as a temporary fix rather than a long-term solution. The company must accelerate its renewable energy transition and reduce reliance on fossil fuels faster if it truly wants to be a net-zero leader.
Terpel’s People-Centric Sustainability Model and Electromobility Initiatives
Terpel, a prominent fuel distribution company in Latin America, has long been recognized for its extensive network of service stations and lubricants. Operating primarily in Colombia, Terpel has established itself as a key player in the region’s energy sector. However, with the global shift towards sustainability and the increasing demand for cleaner energy solutions, Terpel faces the significant challenge of transforming its traditional fossil fuel-based business model to align with contemporary environmental standards.
The Challenge: Transitioning from Fossil Fuels
As a company deeply rooted in the distribution of gasoline and diesel, Terpel’s operations have historically been associated with substantial carbon emissions. The growing global emphasis on reducing greenhouse gas emissions necessitates Terpel reevaluate its core business strategies. This transition is imperative not only to comply with emerging environmental regulations but also to meet the evolving expectations of consumers and stakeholders who are increasingly prioritizing sustainability
The Pressure: Evolving Market and Regulatory Landscapes
In Latin America, there is a pronounced shift towards cleaner energy alternatives. Governments are implementing policies to promote electric vehicles (EVs) and sustainable energy solutions, while consumers are becoming more environmentally conscious and are seeking out companies that demonstrate genuine commitments to sustainability. Additionally, competitors are rapidly adopting green technologies, intensifying the pressure on Terpel to innovate and adapt swiftly to maintain its market position.
The Solution: Embracing Sustainable Initiatives
Recognizing the urgency of the situation, Terpel has embarked on a comprehensive strategy to integrate sustainability into its operations:
- Commitment to Net-Zero Emissions:Terpel has pledged to achieve net-zero carbon emissions for its Scope 1 and Scope 2 emissions by 2050. This ambitious goal underscores the company’s dedication to environmental responsibility and aligns with global efforts to combat climate change.
- Development of Electric Vehicle (EV) Infrastructure: Understanding the pivotal role of electric mobility in reducing carbon footprints, Terpel has launched Terpel Voltex, an initiative focused on establishing EV charging stations across its service networks. This move facilitates the adoption of electric vehicles by providing accessible charging solutions to consumers, thereby promoting cleaner transportation options.
- Introduction of Sustainable Products:Terpel has introduced the Green Pass program, a sustainable lubricants initiative that emphasizes the collection and recycling of lubricant containers, bulk sales to reduce packaging waste, and the certification of distribution points to ensure adherence to environmental best practices. This program not only minimizes environmental impact but also fosters a culture of sustainability among consumers and partners.
- Investment in Renewable Energy Projects:Through its subsidiary, Terpel Sunex, the company is investing in renewable energy projects aimed at reducing CO₂ emissions. Notably, Terpel Sunex has completed the first phase of the Hidrocasanare solar project in Yopal, Colombia, contributing to the company’s goal of reducing over 400,000 tons of CO₂ emissions by 2030.
Taking Action: Measuring Progress and Ensuring Accountability
To transparently track its sustainability efforts, Terpel publishes detailed reports outlining its environmental impact and progress towards its net-zero goals. These reports provide stakeholders with insights into the company’s initiatives and serve as a tool for accountability. Furthermore, Terpel’s consistent inclusion in Standard & Poor’s Sustainability Yearbook, being recognized for the seventh time in 2024, highlights its commitment to sustainable practices and positions it as a leader in the energy sector’s transition towards greener operations.
The Verdict: Pioneering Sustainable Energy Solutions in Latin America
Terpel’s proactive approach to integrating sustainability into its business model exemplifies how traditional energy companies can adapt to the evolving environmental landscape. By investing in renewable energy, developing EV infrastructure, and promoting eco-friendly products, Terpel is not only reducing its carbon footprint but also setting a precedent for other companies in the region. As the demand for sustainable energy solutions continues to grow, Terpel’s initiatives position it at the forefront of Latin America’s energy transition.
ENGIE’s Multifaceted Strategy for a Carbon-Neutral Economy
Engie, a French multinational energy company, has emerged as a global leader in the transition toward sustainable energy solutions. With operations spanning across continents, Engie is committed to achieving net-zero carbon emissions by 2045, aiming to reduce all emissions by at least 90% between 2017 and 2045, leaving only the remaining 10% to be neutralized. This ambitious goal underscores Engie’s dedication to combating climate change and promoting a low-carbon future.
The Challenge: Transforming a Global Energy Portfolio
Historically, Engie’s energy portfolio included a significant share of fossil fuels. Transitioning to a sustainable model requires comprehensive changes across all operations, from energy production to distribution. The challenge lies in phasing out carbon-intensive assets while scaling up renewable energy projects to meet global energy demands.
The Pressure: Regulatory and Market Dynamics
Engie operates in a complex landscape where regulatory pressures and market dynamics are rapidly evolving. Governments worldwide are implementing stricter carbon regulations, and there is a growing demand from consumers and businesses for clean energy solutions. To remain competitive and compliant, Engie must continuously adapt its strategies to align with these changing expectations.
The Solution: A Comprehensive Net-Zero Strategy
Engie’s approach to achieving net-zero emissions encompasses several key initiatives:
- Expansion of Renewable Energy Capacity: Engie is significantly investing in renewable energy sources, including wind, solar, and hydroelectric power. The company aims to have 80 GW of installed renewable capacity by 2030, reinforcing its position as a leader in green energy production.
- Development of Green Hydrogen Projects: Recognizing the potential of hydrogen as a clean energy carrier, Engie is actively involved in green hydrogen projects. Collaborations, such as the partnership with Morocco’s OCP Group, focus on producing green ammonia and other hydrogen-based solutions, with investments potentially reaching up to €17 billion.
- Strategic Partnerships and Investments: Engie collaborates with major corporations to supply renewable energy. Notably, agreements with companies like Meta involve providing substantial solar power capacity, exemplifying Engie’s role in facilitating corporate transitions to clean energy.
- Innovative Energy Storage Solutions: To address the intermittency of renewable energy sources, Engie invests in energy storage technologies, including large-scale battery systems and pumped hydro storage. These solutions enhance grid stability and ensure a reliable energy supply.
Taking Action: Monitoring Progress and Ensuring Accountability
Engie maintains transparency in its sustainability journey by regularly publishing detailed reports that track progress toward its net-zero objectives. These reports provide stakeholders with insights into emission reductions, renewable energy developments, and other key performance indicators.
The Verdict: Leading the Global Energy Transition
Engie’s comprehensive strategy and proactive initiatives position it as a frontrunner in the global shift toward sustainable energy. By embracing innovation, forming strategic partnerships, and committing to substantial investments in renewable energy and storage solutions, Engie exemplifies how traditional energy companies can successfully navigate the complexities of the energy transition.
Challenges and Opportunities in the Net-Zero Journey
Achieving net-zero emissions in the energy sector is an ambitious but necessary goal. While companies like ENI, Terpel, and Engie have made significant strides, the path to decarbonization is filled with regulatory, technological, and financial hurdles. However, it also presents new business opportunities, market advantages, and environmental benefits.
1. Regulatory Hurdles and Policy Gaps
Governments worldwide are setting ambitious carbon reduction targets, but the lack of uniform regulations creates challenges for global energy companies. Some key regulatory issues include:
- Inconsistent Carbon Pricing: Some countries have strict carbon taxes, while others have weaker emissions trading systems, creating an uneven playing field.
- Permitting and Bureaucracy: Renewable energy projects, such as offshore wind farms, often face long approval processes, slowing down deployment.
- Fossil Fuel Subsidies: Many governments continue to subsidize coal, oil, and gas, making it difficult for cleaner energy sources to compete.
To accelerate the transition, energy companies must actively engage with policymakers, advocate for clearer regulations, and push for incentives that promote renewable energy and carbon capture technologies.
2. The Role of Innovation: Technologies Shaping the Future
Despite these challenges, innovation is accelerating the transition to net zero. Key technological advancements include:
- Battery Storage Solutions – Large-scale batteries are improving energy reliability by storing surplus renewable energy and releasing it when demand is high.
- Hydrogen Energy – Green hydrogen has emerged as a promising fuel alternative for industries that are hard to decarbonize, such as aviation and heavy transport.
- Carbon Capture and Storage (CCS) – Technologies like those developed by ENI are proving crucial for reducing emissions in industries where complete decarbonization is not yet feasible.
- Artificial Intelligence & Smart Grids – AI-driven energy management systems optimize electricity distribution, reducing waste and improving efficiency.
Companies that invest in these disruptive technologies early will gain a competitive advantage, positioning themselves as leaders in the sustainable energy transition.
3. Accelerating Decarbonization: The Business Case for Net Zero
Contrary to the perception that sustainability is an expensive burden, decarbonization offers significant economic benefits:
- Investor Confidence & Green Financing – ESG-focused investment funds are pouring capital into companies with strong sustainability credentials. Engie, for example, has secured financing through green bonds to fund its renewable energy projects.
- Energy Cost Savings – Transitioning to renewable energy reduces long-term operational costs, as wind and solar power are now cheaper than fossil fuels in many parts of the world.
- Brand Reputation & Customer Demand – Consumers and businesses are demanding cleaner energy options. Companies that proactively offer low-carbon solutions will attract more customers and partners.
Powering a Greener Tomorrow: Your Role in the Net-Zero Future
The realities of climate change are pushing the global energy sector into undergoing the biggest transformation in its history. The companies leading this transition to net-zero emissions are those that will shape the future.
Through their bold commitments to help mitigate the worst impacts of climate change ENI, Terpel, and Engie are proving that even legacy energy companies can evolve. Their efforts in renewable energy expansion, carbon capture, and clean mobility solutions demonstrate how businesses can turn the net-zero challenge into a long-term opportunity.
The road ahead is still uncertain. More investment, faster innovation, and stronger policy support are needed to make net zero a reality. We all have our part to play. As consumers we should support companies that are leading the clean energy transition, advocate for policies that promote renewable energy and emissions reductions, and offset our carbon footprint by investing in verified carbon credit projects.
To learn more about how you can offset your own companies’ emissions and to inquire regarding opportunities in carbon credit partnerships, reach out to us at CarbonCreditCapital.com.
Let’s work together to build a sustainable future! 🌍💚