Snam, one of the leading gas infrastructure operators in Europe, today presented its First Transition Plan, a clear and ambitious one roadmap to Net Zero by 2050. The plan marks a turning point for the company in decarbonization path of the energy system, based on a long-term strategy that includes two main pillars: reducing emissions and minimising the impact on biodiversity.
“Il First Transition Plan of Snam provides a complete set of initiatives, metrics and KPIs to support a credible transition to Net Zero by 2050,” said CEO Stefano Venier, adding “in the complex journey to Net Zero, this is the right time to act through a comprehensive sustainability roadmap with a solid and reliable path to Net Zero emissions and a positive impact on nature. An increasing share of sustainable finance will help us achieve our ambitious decarbonisation goals”.
Snam: commitment and governance for the energy transition
The Transition Plan, approved by the Board of Directors of Snam, represents the first concrete step towards outlining a clear and systematic strategy towards achieving Net Zero by 2050, in line with global decarbonisation objectives.
- main objectives include:
- Carbon neutrality by 2040 for direct and indirect emissions (scopes 1 and 2).
- Net Zero by 2050 for all emissions, including scope 3, i.e. those generated along the entire value chain.
- Net Positive Impact on Biodiversity by 2027.
- 52% of investments aligned with EU taxonomy by 2032.
The Plan, which will be constantly updated to reflect technological progress and innovation, it is supported by robust governance that includes active involvement of all stakeholders and ongoing dialogue with the financial community.
Snam: 26 billion euros for the future of the transition
To support its ambitious plan, Snam has launched an investment program 26 billion euros for the period 2023-2032. Of these, 11,5 billion euros will be allocated to the period 2023-2027, with the aim of maintaining the reliability and resilience of existing assets, while reducing their carbon footprint.
In the long term, from 2028 to 2032, Snam will invest further 14,5 billion euros to accelerate the transition to a multi-molecule energy system. Key projects include the H2 backbone scale-up and Ravenna CCS project (Carbon Capture and Storage), in addition to accelerating the development of dual-fuel compressor stations. Investments will be aligned with the EU taxonomy, with the expectation of increasing the share of sustainable CapEx from 37% to 52% in the period considered.
Snam looks to 2050: reducing emissions and safeguarding biodiversity
Snam, looking to the energy future up to 2050, has developed a document based on long-term scenarios developed with other players in the sector, such as the Italian electricity transport operator and European network managers. For the first time, the company extends its time horizon until 2050, a crucial year for achieving the Net Zero objectives. An in-depth risk analysis highlights the resilience of Snam's business model, which is based on a multi-molecule system, integrating natural gas, biomethane and hydrogen. Snam's assets prove to be solid, with a minimal portion of gas pipelines at risk of underutilization: only 1% by 2040 and less than 10% by 2050.
One of the main objectives of Snam's plan is the reduction of greenhouse gas emissions. The company has already achieved important results, such as a 10% reduction in CO₂ emissions compared to 2022, and plans further reductions: -20% by 2024, -25% by 2027, -40% by 2030 and -50% by 2032. Particular attention is also paid to the reduction of methane emissions, with a 57,5% drop compared to 2015 already achieved in 2023. Snam aims to further reduce emissions of methane by 64,5% by 2027, 70% by 2030 and 72% by 2032.
In addition to reducing emissions, the biodiversity protection is another central pillar of Snam's plan. The company has committed to achieve Zero Net Conversion by 2024, avoiding further conversions of natural habitats. By 2027, Snam aims to generate a positive impact on nature through the regeneration of vegetation and landscape, supported by policies aimed at the sustainable management of land, water and waste
Sustainable Finance: A Strategic Driver
A key element of the Transition Plan is the strong link between the corporate strategy and the sustainable finance. Snam has already achieved a 40% sustainable financing by 2020 and aims to increase this share to85% within the 2027Sustainability-linked financial instruments play a key role: the conditions of these loans are linked to the achievement of specific sustainability objectives, in particular the reduction of emissions.
