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Dr. Fares Kilzie, Chairman of the Board of the CREON Group

2020 was a year of radical shifts in energy markets. The first, but not the most important one, was the deliberate failure of the OPEC+ deal in March. This was largely predetermined by the reallocation of standings of the major players in the oil market. In 2016, when the first OPEC+ deal was announced, the share of OPEC in global oil and liquid hydrocarbon production was 37.8%, but in 2019 it was only 34.4% according to the U.S. Energy Information Administration (EIA). The share of the United States in the same period increased from 15.2% to 19.3%, while that of the OECD (Organization of Co-operation and Development) countries combined increased from 27.5% to 31.4%. The dissent within the cartel and the loss of market share forced OPEC to tighten its output reduction policy, which increasingly threatened economic feasibility and the national interests of its own members.

It was Russia, who managed to cut the Gordian knot. Moscow promptly understood the meaninglessness of the ‘reduction race’ when output outside OPEC countries was growing chaotically, and Western Europe and North America are taking up major steps in the transition to low-carbon economies. The general geopolitical situation, coupled with the COVID-19 pandemic, prompted Russia to resume participation in a new deal. However, this was only a tactical retreat and a temporary trade-off that cannot reverse long-term global trends.

The main postulate of Russia is: if everyone is reducing drastically and in addition shifting simultaneously away from fossil fuels and hydrocarbons, who can sustainably cover market demand at least in the short and mid-term?

The Path to Global Decarbonization

The most important of these trends is the decarbonization of the global economy, spurred by the rapid development of renewable energy resources. Despite COVID-19, the renewable energy sector has demonstrated a higher growth rate compared to all previous years. According to the EIA, electricity generation from renewable sources (not counting hydropower) in the United States increased by 5% in 2019, while in the first nine months of 2020 the growth was already 12% per annum. This growth accelerated from 9.1% to 9.5% in the European Union according to Ember Research Center.

Of no less importance is the fact that investments in the renewable energies proved to be very resilient to the pandemic: the International Energy Agency (IEA) estimates global investment in oil, gas and coal production in 2020 to decrease by 29% (to $689 billion), while in alternative energy by only 3% (to $301 billion). While the share of investments in renewable energies in the electricity generation sector increased to 67% (versus 65% in 2019). This is partly why the IEA improved its long-term forecast for average growth in global renewable energies demand in its latest World Energy Outlook (from 7.1% to 7.4% per annum).

Far from being newcomers

The future of hydrogen energy also became clearer at the end of 2020. In June, Germany published a national hydrogen strategy consisting of 38 steps with a total cost of €9 billion focused mainly on the production of hydrogen from renewable energy resources. The example of Germany was followed not only by the European Union, which presented its own hydrogen strategy in July, but also by Russia, which approved the Hydrogen Energy Development Plan. This is not a coincidence, but a very clear sign that cooperation in the energy sector remains a priority for both countries despite deep political differences. Moreover, the German hydrogen strategy recognizes cooperation with other market players: the document, which consists of 32 pages, makes use of the word ‘international’ 49 times. Russian and Eurasian companies are far from being newcomers to the hydrogen industry:

Hydrogen is already part of the process cycle of dozens of Russian and Eurasian refineries and petrochemical facilities, not to mention LNG and ammonia plants

Rosatom and Gazprom are going to start up their own hydrogen plants in 2024, which will use nuclear energy (yellow hydrogen) to reduce CO2 emissions, or steam methane reforming (blue hydrogen)
Another project is going to be implemented by RusHydro that will build a hydrogen plant in the Magadan Region by the mid-2020s together with the Japanese giant Kawasaki Heavy Industries
Growth points for the industry will also be the Sakhalin region, where local authorities intend to create a hydrogen cluster, and the cluster in the Arctic areas, where hydrogen technologies can solve the longstanding problem of heat and power supplies.
Kazakhstan and Uzbekistan are investing more and more in solar and wind farms and will be soon suppliers of various types of Hydrogen.

Eurasia in general and Russia in particular, has a huge platform for capital-intensive ‘green’ hydrogen projects, which require a broad international cooperation as clearly demonstrated by the European NortH2 Project (which involves RWE, a German electricity producer, and Groningen Seaports, a Dutch operator of seaports, along with Shell, Gasunie and Equinor). Such projects in Russia can be supported by a very impressive wind-farms fleet, which is owned by the Russian subsidiary of Fortum, Rosnano and dedicated companies of Rosatom, such as NovaWind. Several other major companies can claim the role of initiators and investors, such as Novatek (already showed interest in the hydrogen supplies); Inter RAO (assumed investments in renewable energies in its new medium-term strategy), and, finally, the Russian Railways RZD, that became the first issuer of “green bonds” in Russia.

Therefore, Eurasian companies must not be misunderstood to be fresh newcomers to the hydrogen industry.

Together Towards a Green Future

The results of the 2020 environmental transparency rating (organized by WWF and Creon Group) clearly demonstrate the increasing achievements of Russian and Eurasian oil & gas companies in non-financial reporting and reduction of the environmental footprint. If in 2014, when the first rating was published, the average final score for Russian companies was 0.8, then this year it reached 1.2 (on a two-point scale).

However, the decisive factor will be the return of investments on ‘green’ hydrogen, which today is questionable for businesses, it is similar to the Gas-to-Liquid (GTL) technologies in the 1950s. In order to achieve progress in this area, all stakeholders need close interstate communications and an off-take Roadmap that would not be burdened with neither restrictions nor sanctions. In particular, in the construction of pipelines, which can be used in the future to exports of hydrogen or its feedstock.

Therefore, the administration of President Joseph Biden, perhaps, should listen to the voices of the German industrialists calling for a freeze on sanctions against pipelines that can serve the cause of boosting the Hydrogen era.

Removing any restrictions and freezing of sanctions will also bring the United States and Europe closer to a common ‘green’ future.

While Germany is trying to build up hydrogen partnership with Russia, and while Russia is pushing for stronger measures to protect climate and environment, the country’s oil and gas industry faces accidents with serious environmental impact on a regular basis. The oil and gas business, which has been notoriously non-transparent for decades, can now be seen a little more open to the public. This is what the studies held by WWF Russia and Creon Group say. Creon, the investment and advisory company, sees a growing transparency trend in the oil and gas connected with the decarbonisation efforts of the EU.

The World Wildlife Fund (WWF-Russia) and Creon Group presented the results of the 2020 Environmental Transparency Rating of Oil and Gas Companies. This year numerous accidents and spills caught much attention. At the same time, environmental transparency of business increased, while the final calculation saw the top three leaders changed. The rating report is being conducted with the support of the European Union.

On December 4, 2020 at 12.00 at the ITAR TASS press center, the results of the " Environmental Transparency Rating of Eurasian oil and gas companies 2020" will be presented. The event will also host an online round table "Energy Transition - Eurasian Context" dedicated to the challenges of decarbonization for the oil and gas industry in Russia, Europe and Asia.

European Union has been working on the economy to become carbon-neutral until 2050. Russia is seeking to reduce emissions and diversify the energy exports. For bilateral cooperation, the “Green Deal” may be a challenge on the first glance, but these could turn into opportunities, said Florian Willershausen, BD Director of Creon Capital at the 9th seminar on the future of Russia-EU relations at November 2, organized by the Russian International Affairs Council, Delegation of the European Union to Russia and the Embassy of Germany.

Florian Willershausen, Director BD Creon Capital

In the EU some tend to think quietly that Russia lacks behind in terms of climate change mitigation, recent accidents such as the Norilsk oil spill may give even some evidence. But this perception is incorrect: Together with WWF Russia Creon Capital and Creon Group have been conducting a rating of oil and gas companies in terms of environmental transparency for seven years. This project shows a more and more open discussion of challenges, and the instruction of elaborated ecological policies to reduce the carbon-footprint.

At the same time, in Russia many experts sometimes tend to talk down the “Green Deal”, stating that there will always maintain a market for Russian oil and especially gas, since both resources are cheaper than elsewhere and available on the long run. But this argument is at least risky. EU countries are willing to subsidize the energy transition, so that higher energy costs are sufferable for private and corporate customers.

There are many challenges both sides must face.

Challenges for Russia

For Russia, of course, gas will remain an important export good to Europe in the next decades. But Europe already started significant investments in a hydrogen infrastructure to reduce fossils. Big oil and gas companies are now turning from fossil fuel merchants to green energy suppliers of tomorrow. For example, Shell has been replacing a gas-based steam reformer by a renewables-based electrolysis to produce carbon-free hydrogen for their Rhineland refinery in Germany – with the result of a drop in gas demand.

Some may say, that power generation on gas causes less emissions, than coal-based power generation, that is still durable in Germany. And that since coal remains strong for domestic and social political purposes, gas will stay forever. But there is no guarantee that electricity still will be produced from the fossils, once the coal power plants are shut down in near future of 2030s. This is a trend concerning not only Europe, but the whole world. The Israeli regulators are about to block the construction of a modern and a highly-efficient gas power plant by Siemens Energy. The Israel government switched to support only energy projects from renewables.

The energy landscape is changing dramatically and very fast.

Russia cannot foresee the regulatory sticks to come, for example taxes on pollution or custom duties for carbon-intense products. But Russian enterprises should be prepared that the future of the fossils is in jeopardy.

Challenges for the European Union

And there are also tough challenges from the “Green Deal”the European Union has to face.

It is naïve to think that all energy demands can be covered from renewables at the current stage. Or that all hydrogen to being imported to Europe must be “green”. With all respect to the “Green Deal” and the growing share of renewables in the energy mix, there will not be enough renewable-based hydrogen available in Europe. It is unfeasible, when the entire passenger car sectors will shift to electricity, while coal and nuclear power plants in Germany are being shut down. But instead of hoping to increase their gas supplies to the EU, Russia might promote carbon-neutral hydrogen through a jointly developed infrastructure.

This situation offers a perfect framework for synergy effects.

Framework for synergies between Russia and the European Union

Apart from the challenges, there is motivation by the financial sector to bring incentives in terms of cheap financing for green projects. The investors demand money to be spent in green projects, which gain cheap funding. EU green bond market is open for Russian projects despite sanctions.

European companies provide plenty of high-end solutions in the fields of energy efficiency, waste treatment and ecological monitoring, which are highly demanded in Russia right now. These solutions must be adapted and localized to the Russian context.

Russia can keep its role as major energy supplier. The country exported in 2019 more than 150 billion qm³ of gas to the EU, yet a very important an irreplaceable market for Russian gas producers. The “greener” the economy becomes, the more will the gas demand decline. So Russia must prepare itself to produce carbon-neutral hydrogen based on natural gas and LNG.

At the same time, Russian business should be ready to shape supply chains for clean energy proactively. This approach works very well, as can already be witnessed in Germany. The Russian LNG producer Novatek invests in a small-scale LNG terminal in Rostock, from which in short run the fuel will be provided to ships and trucks further downstream. For the next 20 years, LNG is the better alternative to diesel and heavy oil, not yet hydrogen.

The governments in both countries should encourage and support such projects also for synthetic polymers, as well as for the hydrogen infrastructure. Both Russia and European countries need to start joint research and development programs to produce blue or turquoise hydrogen, and not only green hydrogen, where the entire European discussion on hydrogen turns around.

Both Russia and Europe share the vision of a long-term climate neutrality, aiming to reduce harming climate emissions and to develop new value chains in green energy. This requires financial support also from governments and development banks. In this context it would be helpful to lift financial sanctions on Russia at least by a degree development banks are allowed to cooperate with Russia and finance joint “green” projects.

Last but not least, the energy cooperation can enhance the political ties between EU and Russia.

Recently, Germany declared an energy partnership with Ukraine with focus on hydrogen. Further partnerships between EU members and other countries are being set up. An EU-Russia Dialogue on green economy and clean energy is urgently needed. And the business demands a bilateral hydrogen partnership driven from the top official level. This kind of cooperation would be very fruitful and beneficial for both sides to fulfill decarbonization goals until 2050.

JSW Steel Italy announced the signing of an agreement with Creon Capital with the aim of developing the renewable energy, LNG, logistics and related industrial activities in the area of Piombino port. On September 15th, JSW Steel presented the Piombino 2030 Industrial Plan.

The new industrial plan for JSW Steel Group’s Italian companies, known as Piombino 2030, was presented on September, 15th at the JSW Steel Italy headquarters in Piombino. JSW Steel Italy’s Vice-President, Marco Carrai, the Undersecretary for Economic Development, Alessia Morani, the President of the Tuscany Region, Enrico Rossi, and the Mayor of Piombino, Francesco Ferrari, were present at the event.

Other participants were the Social Partners, representatives of the Province, of the Ministry of the Environment, of the Ministry of Labour, Invitalia, the Upper Tyrrhenian Sea Port System Authorities and the State Property Office. The meeting was also attended by all the financial partners involved in the industrial plan.

The industrial plan, which envisages an initial investment of 84 million euro thanks also to the participation of Invitalia, as announced in the same office by the Undersecretary for Economic Development Alessia Morani, is divided into two phases: the first, in the short term, aims to make the rolling plants more efficient, complete the product range and bring the company to satisfactory profitability. The second phase, in the medium term, targets over the next five years the return to steel production through the use of the electric furnace and the construction of a multicentric industrial complex that also includes logistics, manufacturing and environment activities to be carried out with selected partners in the individual sectors and financials.

“We are proud to present the business plan today, even in a difficult economic situation. I would like to thank all those present here for making this relaunch a reality” – said Marco Carrai, Executive Vice President JSW Steel Italy – “Invitalia, as announced today by the Undersecretary for Economic Development Alessia Morani, will support this first phase, aiming to relaunch the company and make it productive again. We hope that Piombino will once again become a key industrial place, starting from our core business, steel, and safeguarding all jobs”.

“We had made a commitment and respected it. For some months now I have been following the dispute with Minister Patuanelli. The first commitment we had made was the possibility for the State to enter the capital of JSW Piombino and this will be achieved in the coming weeks through Invitalia, which will enter with 30 million euros” – said the Undersecretary for Economic Development Alessia Morani – “The second commitment was on a regulatory level and took shape last week, with the approval of the simplification decree, regarding the rail orders for the Piombino factory, thanks to which we created the ideal conditions ensuring a continuity that guarantees economic peace of mind for the company and, of course, for the workers. I believe that the policy must be done in the following way: for commitments and concrete results. On the 24th there will be a meeting at Mise to update the addendum that necessarily follows the approval of the industrial plan. With Jindal, all the institutional partners and with the help of the trade union, we hope to guarantee a future for this factory, which is the heart of the city, as soon as possible”.

In recent weeks, JSW Steel Italy announced the signing of an agreement with Creon Capital with the aim of developing the renewable energy, LNG, logistics and related industrial activities in the area of Piombino port and the start of a dialogue with the ship builder Fincantieri to assess the possibility of allocating some areas within the Piombino industrial site to shipbuilding activities and large reinforced concrete cellular modules for maritime infrastructure.

DOWNLOAD the Press-release in English, Russian or Italian language

JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. e G.S.I. Lucchini S.p.a. are part of the diversified JSW Group in India, which has a leading presence in sectors such as steel, energy, infrastructure, cement, sports, among others. Today, JSW Steel Ltd. is one of the leading integrated steel companies in India with an installed capacity of 18 MTPA.

Piombino (Italy), 1^st September 2020 – Creon Capital has signed a Memorandum of Understanding (MoU) with JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. aiming for the development of a sustainable energy industry in Italy.

Together with local partners, the fund management proposed to start working on an investment plan that should upscale the Tuscan region of Piombino into a cluster for hydrogen, renewable energy, LNG, and logistics. Accordingly, the MoU has been signed by Dr. Fares Kilzie as Chairman of the Board of Directors (Creon Capital) and Marco Carrai, Executive Vice President of JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a.

Subject of the development plan will be the area in the municipality of Piombino, located on Tuscan Coast, 90 kilometers south of Livorno. JSW Steel Italy Piombino s.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. are companies belonging to the JSW Group, are the concessioner of a part of the area and have an option on another part of it, which is undergoing an industrial conversion.

Creon Capital team will be in charge for ESG integration, fundraising, and strategic development. As the Luxembourg-regulated Creon Energy Fund follows a distinctive sustainable investment approach, the management will evaluate initial quality, ongoing integration, and overall performance of environment, social and governance (ESG) factors in all related projects.

Dr. Fares Kilzie, Chairman of Creon Capital Board of Directors, underlines: “Due to its geographical location and excellent infrastructure, we estimate great potential for the industrial zone Piombino to become an innovative cluster for contemporary energy projects in Italy. Thanks to our strong footprint in the global energy sector, we are capable to attract investors as well as technology partners into the establishment of an energy cluster, that might consist of hydrogen, renewable energy, LNG storage and regasification projects.”

Marco Carrai, Executive Vice President of JSW Steel Italy Piombino S.P.A., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. underlined: “Our long relationship with Creon capital gives me the full confidence in conducting all our plans for Piombino in the midterm and long-term future.”

The Presidency of Tuscany Region, underlines: “cost of energy is a key issue for a full restart of a new steel plant in Piombino. We welcome this MOU as it demonstrates that public efforts put in the area made it attractive for new potential investments on top to the engagements from JSW Steel Group.”

Additional information

JSW Steel Italy Piombino S.p.a., Piombino Logistics S.p.a. and G.S.I. Lucchini S.p.a. are part of the diversified US$ 12 billion JSW Group in India, which has a leading presence in sectors such as steel, energy, infrastructure, cement, sports among others. Today, JSW Steel Ltd. is one of the leading integrated steel companies in India with an installed capacity of 18 MTPA.

See detailed information on the JSW Steel website.

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The coronavirus pandemic has dramatically changed the global economy. And investors are “risk on” again. In addition to the pandemic currently sweeping the world the climate crisis remains in the background and investors are increasingly worried about environmental risks. Russian companies, in particular, are worried about being penalised for environment related issues and will have follow the Green Economy trend that is being demanded by retail investors, first and foremost.

The coronavirus pandemic has distracted from the furore created by Swedish climate crisis campaigner Greta Thunberg and her “Friday’s for the Future” youth movement. Nobody seems to care anymore about climate change since the globalization has stalled. People fear losing their jobs more than what the future holds — even on Fridays.

But appearances are deceptive. While governments around the world are busy curbing the pandemic and managing economic loses, a sophisticated green financing infrastructure is being built in the background. Companies, especially in Europe, which has embraced Thunberg’s call to action, taking their ESG (Environment – Social – Governance) responsibilities seriously and including it in their long-term strategies. This trend will not stop, and can be expected to grow in importance.

The pandemic has sharpened the senses to risks among companies’ decision-makers. Coronavirus has clearly demonstrated the fatal consequences of underestimating the risks for supply chains and the disruptive power Mother Nature still commands.

Banks, investors, and regulators re-evaluate risks that go beyond the pandemic. A World Economic Forum (WEF) report on global risks has linked nine out of ten risks directly to ESG factors, the most important of which are the protection of the climate and the environment. Financial players have started to closely monitor companies’ ESG policies.

While the world is fighting the coronavirus, Europe continues its efforts to build up a large-scale financial infrastructure for ESG investors. In 2016, the Luxembourg Exchange launched the Green Stock Exchange (LGX) – a trading platform for securities and Eurobonds of projects that meet 17 UN sustainable development goals (SDGs). Today it is the global leader in the “green bond” market, whose volume doubled to €216bn in 2019. Today less than one per cent of all traded bonds are green, but this market has enormous growth potential.

Investments revaluation

Large investors have already given an impulse to “greenify” the market, and the rest of the investing community is expected to follow. Last summer, the world’s largest investment company Blackrock banned all investments into the traditional energy sector. In October, the Norwegian pension fund Global sold its stake in Russia’s metallurgical titan Norilsk Nickel for environmental reasons: according to the Norwegian Ministry of Finance, the environment is suffering because of the company’s activities, and this violates the fund’s code of ethics (although Global itself made €900bn from oil sales the same year). And Brussels has already banned the European Investment Bank (EIB) and the European Investment Fund (EIF) from investing in oil, gas, and coal industries.

A this trend progresses more and more investors are expected to redistribute funds from fossil fuel producers to green-tech companies. Raising capital in equity markets for green and eco-friendly companies will become easier. Financial institutions will monitor ESG-compliance and make access to credit lines and bank accounts easier. In the case of non-compliance with these standards, credit and capital will become hard to get.

Classical energy companies will be subjected to the neoclassical risks. Why invest in bonds, even a super-profitable oil company, if it is exposed to non-ESG compliance risks or public scandal that could ruin an investment overnight? Neither investors, nor banks, nor regulators are willing to bear responsibility for serious environmental consequences.

Russia has no choice but to follow the trend

“The trend if your friend,” runs the old market adage, but in this case it is a trend with a twist. Falling oil prices have already created problems for the low-liquid waste market, which is still at very early stage of development.

The upshot of the low prices is petroleum raw materials to make plastics is now cheaper than recycled plastic waste. But the large petrochemical producers such as Russia’s Sibur and Nizhnekamskneftekhim remain committed to using recycled plastic in production, thanks to pressure from their strategic partners, customers, investors, and banks as well as their own ESG-compliance rules.

Many Russian companies are actively introducing ESG compliance strategies and officers. For an example, Russia’s major privately owned Lukoil oil producer covers 6% of its electricity needed using renewable sources – primarily solar energy. Shell plans to spend €2bn a year on development of alternative energy sources, and the Norwegian oil major Equinor will invest one fifth of its investment budget in renewables.

Russian petroleum companies are still far from these numbers, though they are already active in environmental protection initiatives. Environmental performance of oil and gas companies is monitored by Transparency Rating of Environmental Responsibility, which has been jointly conducted by Creon Group and WWF Russia (World Wild Fund for Nature Conservation) for seven years already.

The time for large investments into the green economy has come. Now is the time to develop clean renewable energy, reduce burning of associated gas to zero, and increase the share of recycling in the polymer industry. In the new economic order only businesses with a consistent strategy for sustainable development in the social and environmental arena can be profitable. This need has already recognized by many, not just Greta Thunberg.

Florian Willershausen, director of Creon Capital, managing Luxembourg-based fund’s company Creon Energy Fund, which invests in projects of green technologies, renewable energy and logistics projects. The fund is the core part of Creon Group, a strategic consultant in the transition to sustainable development and integration of ESG factors.

This text has been published on Intellinews:

https://www.intellinews.com/opinion-why-the-russian-economy-will-inevitably-become-green-after-the-covid-19-epidemic-is-over-183464/?source=russia

A Russian version is available on the leading Russian online portal RBC:

https://trends.rbc.ru/trends/green/5ea82ca89a79472db412c14a?from=center

The investment Greon Group in partnership with World Wildlife Fund (WWF) Russia extended the participants’ geography of its environmental transparency rating with oil companies from Azerbaijan. For the first time analytics compared them to ones from Russia and Kazakhstan. The rating allows to assess investment attractiveness of oil companies, which becomes very important for industry’s post-corona crisis recovery.

Two corporations from Azerbaijan have been joined this year to the annual transparency rating of oil and gas companies run by Creon Group and WWF: State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan International Operating Company (AIOC).

“The situation with coronavirus is alarming but should be temporary: oil and gas markets slump caused by global economic slowdown worsened by the coronavirus pandemic. However, I am sure the industry will overcome today’s challenges”, said Fares Kilzie, chairman of the board of Creon Group. “The rating importance will be even higher after the crisis as it defines transparency and ecological responsibility of oil companies. Here are key indicators for any investors in today’s business reality”, emphasized Kilzie.

Along with newcomers, two Azerbaijan oil companies, the Eurasian rating represents 20 major Russian oil and gas companies with production of crude oil and gas concentrate exceeding 1.5 mln ton per year and 14 Kazakhstani companies with production exceeding 0.5 mln ton per year.

Head of Environmental Policy Program at WWF Russia Alexey Knizhnikov added, “geographical expansion of rating has not only extends the number of participants from new countries, but more importantly, allows us to explore and analyze the level of impact on environment in line with industry average indicators for region. It is the first time when we got a chance to compare oil companies of Russia, Kazakhstan and Azerbaijan by multiple ecological criteria”.

The new criteria have been used to compare greenhouse gas emissions per unit of energy for three countries. Russian and Kazakhstani companies’ emission rate is 73.29 and 76.12 kg per unit of energy respectively, whereas emissions data of Azerbaijani companies is higher. As commented Mr Knizhnikov, “We are certain that the data of greenhouse gas emissions will decline gradually as it decreased in other companies of our rating list”.

According to Mr Kilzie, ESG (Environment-Social-Governance) responsibility factors are becoming key criteria for investment decisions in energy sector. “We see it clearly in western markets as oil companies have to conduct internal audit for board of directors, banks and shareholders, and forced to being transparent and responsible to the broader society. In order to pass double exam and to achieve sustainable development, businesses need to be ranked in a credible ecological rating and keep moving toward transparency”, suggested Mr Kilzie.

DOWNLOAD the Rating brochure here (EN/RU)

Reference

An annual independent Rating of Environmental Responsibility of oil and gas companies have been facilitated in the frame of “Rational Approach” for Russia since 2014, Kazakhstan joined in 2017 and republic of Azerbaijan beginning in 2020. The rating helps to evaluate the ecological responsibility of oil companies with production exceeding 1.5mln ton per year. Joint project of Creon Group and WWF has been found in order to accomplish two goals: to reduce environment impact and encourage oil companies operating in Russia and CIS countries to integrate ESG (Environmental, Social, Governance) related factors, and moving forward sustainable development goals.

Contacts

Alexey Knelz
Head of Corporate Communications CREON Group
alexey.knelz@creon-group.com
+7 (985) 773-31-93

Polina Shkividorova
Press secretary WWF Russia
+7 495 727 09 39
PShkividorova@wwf.ru

Since 2008, the UAE-based renewable energy company Masdar hosts the Abu-Dhabi Sustainability Week (ADSW) to promote green technologies and renewable energy as cornerstones for a cleaner global energy sector. This year, CREON Group is committed as a sponsor of the World Future Energy Forum. A large delegation of specialists participates in the exhibition and forum discussion. More than 5.000 visitors visited the several sectoral summit and the exhibitions.

It is common knowledge that Arab countries such as the United Arab Emirates have achieved economic prosperity thanks to traditional energy sources. But some might still underestimate, that especially the UAE accelerated to the world leaders in terms of investments in new energy sectors. Their state policy in the field of renewable energy is based on the principles of sustainable development formulated by the UN and regionally ensured by active government support of investments in the new energy sector such as renewable energy and green technologies. During the Abu-Dhabi Energy Week, the Minister of Energy of Saudi Arabia, Prince Abdulaziz Ibn Salman Al Saud, predicted that the share of gas and renewable sources in the energy balance of the kingdom will increased significantly. Among renewable energy sources – not only solar and wind, but also hydroelectric power plants.

Sultan Ahmed Al-Jaber, UAE Minister of State and Chairman of Masdar, announced the goals of sustainable development of the emirates for the next 30 years: “At the national level in the UAE, we have increased our portfolio of renewable energy sources by more than 400% in the last 10 years, and we are on the path to doubling it again over the next 10 years. ” By 2030, the country plans to reduce greenhouse gas emissions by 25% and reduce the share of water use from natural sources to 0.5%. The Masdar Chairman stated that «the UAE not only talks the talk but walks the walk towards renewable energy. Because it is right and makes perfect economic sense».

It is no coincidence that the headquarters of the International Renewable Energy Agency (IRENA) is located in the UAE capital. The eco-city of the future Masdar City was built here, and since 2006 the company of the same name Masdar has been operating, through which the Abu Dhabi sovereign fund invests in green projects in 25 countries of the world. Khaldun Khalifa Al Mubarak, CEO of Mubadala Development Company, considers his main task “to act now, given the climate changes that threaten not only future generations, but the very existence of our planet.”

Green technologies and environmentally friendly energy solutions are in line with the investment objectives of the fund managed by Creon Capital, which is regionally oriented towards the emerging markets of Eurasia. The fund is constantly looking for new opportunities for clean energy. Fares Kilzie, Chairman of the Board of Directors of Creon Capital, explains why such solutions for the energy sector will be most in demand: “In parallel to traditional types of energy, Russia and the CIS countries are beginning to show interest in renewable energy and environmental solutions. The result is green projects worth trillions of dollars. As the country diversifies toward clean energy, it will also continue to invest in the responsible production of traditional forms of energy. We urge the majors of the Russian oil and gas sector, who have extensive capabilities and all the necessary infrastructure, to engage more actively in the implementation of green technologies and renewable energy sources. ”

Pictures:

Creon and Masdar executives meeting in Abu-Dhabi (from the left): Mohamed Jameel Al Ramahi (CEO of Masdar),Yousif Al Ali ( Acting Executive Officer of Masdar Clean Energy), Dr. Fares Kilzie (Chairman Creon Capital), Vladimir Nekhvyadovich (1st Deputy CEO ISS Global Solutions).

Masdar Chairman Dr. Sultan Ahmed Ad Jaber opend the Abu-Dhabi Sustainability Week (ADSW)

Creon Capital is represented in the exhibition zone with a stand, as well as portfolio companies such as ISS Global Solutions.

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The Path to Global Decarbonization

Far from being newcomers

Together Towards a Green Future

Russian oil companies improve environmental transparency

Leaders change in the Environmental Transparency Rating of Oil and Gas Companies

The Environmental Transparency Rating of Eurasian oil and gas companies-2020 will be presented on December 4

„EU and Russia need a dialogue on greener energy“

84 million euros for the relaunch of JSW Steel Italy

Creon Capital signs MoU with JSW Steel Italy Piombino for upscaling Italy’s logistics and energy sectors

Why the Russian economy will inevitably become green after the COVID-19 epidemic is over

WWF and CREON Group presented first Eurasian ecological rating of oil and gas companies

Abu-Dhabi Sustainability Week supported by Creon Capital