Neste Updates Emissions Reduction Timelines Reflecting Financial and Investment Priorities

Neste Updates Emissions Reduction Timelines Reflecting Financial and Investment Priorities

(IN BRIEF) Neste has revised certain climate targets to reflect its current financial position and a streamlined investment portfolio, while reaffirming its commitment to renewable fuels. The company now targets an 80% reduction in Scope 1 and 2 emissions by 2040, extending interim milestones and removing emission compensation from its climate framework. Key targets related to reducing the emission intensity of sold products and supporting customer emissions reductions remain unchanged. Neste says the adjustments allow it to pursue ambitious but realistic climate goals alongside financial stability and continued investment in renewable fuel capacity.

(PRESS RELEASE) ESPOO, 15-Dec-2025 — /EuropaWire/ — Neste has announced revisions to certain climate targets as part of a reassessment driven by its current financial position and a more focused investment portfolio. While maintaining its strategic direction in renewable fuels, the company concluded that achieving some previously stated climate ambitions within the original timelines would require capital investments that are not feasible under present conditions. Neste emphasises that it remains committed to growth in renewable diesel and sustainable aviation fuel, continuing to provide lower-emission alternatives to fossil fuels.

As part of the update, Neste has set a new target to reduce greenhouse gas emissions from its own operations (Scope 1 and 2) by 80% by 2040, replacing its earlier ambition to achieve carbon neutral production by 2035. The interim milestone for a 50% reduction has also been adjusted, with the target year extended from 2030 to 2035. Under the revised framework, Neste will focus exclusively on absolute emissions reductions in its own operations and has removed the use of emission compensation as a compliance mechanism within its climate targets.

Two of the company’s core climate commitments remain unchanged. Neste continues to target a 50% reduction in the use-phase emission intensity of sold products by 2040, based on a 2019 reference year. In addition, its carbon handprint ambition to help customers reduce their greenhouse gas emissions by 20 million tonnes annually by 2030, using a 2020 reference year, is unchanged. These targets underline Neste’s continued emphasis on delivering climate benefits through its products and customer solutions.

The revised targets follow Neste’s earlier decision to delay the transformation of its Porvoo refinery into a renewable and circular solutions hub. Given the company’s current financial situation, major capital expenditure beyond the ongoing €2.5 billion investment in expanding its renewables refinery in Rotterdam is not planned. Neste notes that large-scale industrial investments typically require long lead times, making adjustments to climate timelines necessary under current market and financial realities.

In the near term, Neste’s emissions reduction efforts will concentrate on energy efficiency improvements, operational excellence initiatives and the evaluation of alternatives to fossil hydrogen. Planning work for the gradual conversion of the Porvoo refinery will continue, with future timelines determined by market demand, regulatory developments and technological progress. Neste also highlights that fossil fuels will remain necessary in the short term to safeguard energy security in Finland.

Neste reports that it has already reduced greenhouse gas emissions from its own operations by 24% since 2019, despite increasing renewable fuel production. The company states that it will continue to balance climate action with financial sustainability and long-term business resilience, while supporting customers in reducing their emissions through renewable fuel solutions.

Further information: Please contact Neste’s media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe.

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for mitigating climate change and accelerating a shift to a circular economy. The company is the world’s leading producer of sustainable aviation fuel (SAF) and renewable diesel, enabling its customers to reduce their greenhouse gas emissions. Neste refines waste, residues and other renewable raw materials to high-quality renewable fuels at its refineries located on three continents. The company’s annual renewable fuels production capacity will be increased to 6.8 million tons in 2027.

Neste has high standards for sustainability and the company has consistently been recognized by several leading sustainability indices. In 2024, Neste’s revenue stood at EUR 20.6 billion. Read more: neste.com

SOURCE: Neste