EMISSIONS: Equinor Grows EUAs Inventory By 16% In 2024, Lower Carbon Target

Equinor increased its EUA inventory by 16% in 2024, reaching 10 million EUAs, according to its latest annual report. Despite maintaining net zero target, it has scaled back its targets for reducing net carbon intensity, which is one of its key climate benchmarks.

• The company acquired 5.7 million EUAs and surrendered 9.8 million for compliance in 2024. Meanwhile it received 5.9 million free allocations, covering 60% of the total surrender volume for the year.
• Its EU ETS-related cost fell to $465 million in 2024, down from $486 million in 2023 and $510 million in 2022.
• From 2026, Equinor will apply a minimum default carbon cost of $92 per ton CO2e, increasing to $118 by 2030, for investment decision-making.
• These internal carbon prices are at a premium to the current carbon prices, with EUA Dec25 at $79.92 and UKA Dec25 at $60.36.
• The firm bases its EU ETS price forecasts on forward contracts and long-term market balances, while UK ETS forecasts rely on the spread versus EU ETS.
• It has cut operational emissions by 34% since 2015 and maintains its targets to reduce net emissions (Scope 1 and 2) by 50% and gross emissions by 45% by 2030, relative to 2015 levels.
• However, Equinor has scaled back its targets for reducing net carbon intensity to a range of 15–20% by 2030 (from 20%), and to 30–40% by 2035 (from 40%).