Sinopec receives the first carbon-neutral petroleum certificate issued by 
Shanghai Environment and Energy Exchange (SEEE) 

Shanghai Environment and Energy Exchange (SEEE) has issued the first carbon 
neutral petroleum certificate to Sinopec (HKG: 0386, "Sinopec"), Cosco Shipping 
and China Eastern Airlines at the certification ceremony for China's first 
shipment of full life cycle carbon-neutral petroleum held on September 22 in 
Shanghai, China.

Sinopec, Cosco Shipping and China Eastern Airlines have taken their respective 
advantages to jointly develop an innovative practice of building "a new model 
of green transportation," exploring a cross-industry, full-cycle and 
zero-emission path – a milestone significance as China's transportation and 
energy sectors promote to reach peak carbon emissions and achieve carbon 
neutrality.

The crude oil of this carbon neutral petroleum project was produced from 
Sinopec International Petroleum Exploration and Production Corporation's share 
of oil in Angola and was imported by Sinopec's trading arm Unipec with Cosco 
Shipping as the carrier. The crude oil shipment travelled over 9,300 nautical 
miles across the Atlantic, Indian and Pacific oceans, arriving at Ningbo 
Zhoushan Port. The 30,000 tons of crude oil was later transported to the 
Sinopec Gaoqiao Petrochemical Corporation refinery. 

Sinopec will officially launch the carbon-neutral gasoline and diesel products 
to the public at designated gas stations this year. In the meantime, Sinopec 
will be supplying 5,417 tons of jet fuel to China Eastern Airlines to build 
carbon-neutral flights as a joint effort.

To offset the carbon emissions produced throughout the life cycle of the 
shipment of oil, Sinopec, Cosco Shipping and China Eastern Airlines actively 
implemented energy saving and emission reduction strategies, purchased Chinese 
Certified Emission Reduction (CCER) carbon credits, and hired SEEE as the 
carbon neutral certification authority.

The project invited China Classification Society Certification Company (CCSC) 
as the third-party verification agency to measure the carbon dioxide produced 
throughout the entire life cycle, from oil exploitation, transportation, 
storage, refining to product consumption accurately, and then equally offset 
the emissions to complete China's first carbon neutral oil shipment.

The three companies have played their respective advantages to reach a common 
goal. Sinopec took on the responsibility of offsetting the carbon emissions 
produced from exploitation, storage, processing, transportation of petroleum 
products, motor gasoline and diesel and LPG combustion; Cosco Shipping 
undertook the carbon emissions offset responsibility of crude oil 
transportation and marine fuel combustion; and China Eastern Airlines took on 
the responsibility of offsetting carbon emissions from aviation kerosene 
combustion.

"Sinopec is committed to achieve green and low-carbon development. This carbon 
neutral petroleum project has achieved carbon neutrality from the 'cradle' to 
the 'grave' with every drop of oil. It is also the first carbon emissions 
offset endeavor carried out by companies across three industries, realizing 
full coverage of carbon neutralization of land, sea and air transportation. The 
project is of positive effect, and we will thrive to provide safer, cleaner and 
diversified energy while meeting the target requirements of reaching carbon 
peak and achieving carbon neutrality," said Ling Yiqun,  Vice President of 
Sinopec Group.

The petroleum sector has a long process chain with complicated technological 
processes and difficulties in calculating the carbon emissions. Faced with the 
new standards of carbon peak and carbon neutrality and to be in line with the 
general trend of energy transition, the oil and gas industry must find a new 
development direction that is green, sustainable and reduces carbon and 
emissions.

Sinopec collaborated with Cosco Shipping and China Eastern Airlines to carry 
out China's first shipment of full life cycle carbon neutral oil trade, 
accurately measuring and offsetting carbon emissions from the project. This 
partnership explored a clear path to achieve carbon neutral oil trade to 
establish an industry benchmark and an example to lead the green and clean 
development of the industry.

For more information, please visit: Sinopec ( http://www.sinopec.com/listco/en/ 
).

Source: SINOPEC

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   Caption: Production Facility of Sinopec Gaoqiao Petrochemical Corporation.