PAJ Fuel+

Carbon Neutral

The Petroleum Association of Japan announced its Vision toward Carbon Neutrality for the Oil Industry.


It shows that the oil industry will work to achieve carbon neutrality based on the following three pillars:

  1. 1.reduction of emissions associated with its business activities,
  2. 2.reduction of emissions associated with the products it supplies,
  3. 3.measures to reduce CO2 emissions and carbon sinks.

A vision for Carbon Neutrality in Japanese Petroleum Industry

In October 2020, the Japanese government declared that Japan would realize "Carbon Neutrality by 2050.” In response to this, the Petroleum Association of Japan (PAJ) renewed its “Long-term Low Carbon Vision for the Petroleum Industry” in 2019, and newly formulated the “Petroleum Industry’s Vision toward Carbon Neutrality.” Furthermore, the vision was revised in December 2022, based on the realization of innovative technology development, etc.
The biggest point of this vision was the aim of achieving virtually zero CO2 emissions (carbon neutrality) associated with business activities (in other words, Scope 1+2). In addition, the December 2022 revision included the additional challenge of achieving virtually zero CO2 emissions that are associated with the supplied products (Scope 3).
To achieve this, the petroleum industry as a whole will have to take on the challenge of not only strengthening existing measures, such as promoting energy conservation and the use and development of renewable energy, but also carrying out “innovative technology development” by 2030, such as the reform of the refining process through technological developments, including the use of CO2-free hydrogen, and the carbon recycle (CCS and CCU), and subsequently put them into societal implementation by 2050.
In addition, as measures for CO2 emission reduction and carbon sinks, the development of infrastructure, such as hydrogen fueling stations and EV charging stations, expansion of the renewable energy business, development of waste plastic recycling technology, and conversion of raw materials for petrochemical products to next-generation biomass, will contribute to the realization of carbon neutrality in society as a whole.

Images of the Challenge Towards Carbon Neutrality

The quantity of greenhouse gases emissions in Japan (actual FY2021 figures) was approximately 1.2 billion tons (CO2 equivalent) in total, with energy-derived CO2 accounting for about 1 billion tons, of which around 1/3 was the result of the consumption of petroleum. Of the CO2 emissions from the consumption of petroleum, emissions from refineries (Scope 1) accounted for about 3 million tons, and the majority of the emissions came from petroleum consumed by the supplied petroleum products (Scope 3), so the reduction of these emissions is of great importance.
Heading towards 2050, the petroleum industry intends to take on the challenge of reducing CO2 emissions associated with supplied petroleum products (Scope 3) to virtually zero through the development and commercialization of such innovative technologies as SAF, CO2-free hydrogen, ammonia, and synthetic fuel (e-fuel), as well as promoting the development of recyclable energies and other measures.
The challenge of reducing Scope 3 CO2 emissions to virtually zero is extremely ambitious and difficult to achieve. Nevertheless, every oil company will contribute to the realization of carbon neutrality in society as a whole by making proactive efforts in the research, development, and societal implementation of carbon neutral technologies, as well as continue their activities for a stable supply of energy demanded by consumers.

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