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MC Explains: Why oil companies are making big plans to invest in renewable energy

IOC has the biggest share among India's oil firms with a total green energy capacity of 237.42 MW comprising 167.6 MW of wind and 69.82 MW of solar power.

January 26, 2023 / 12:50 PM IST
India has set itself a ‘net zero’ emissions target for 2070. Several other oil companies in India have set similar but earlier targets for their own businesses. Representative Image (File image)

India has set itself a ‘net zero’ emissions target for 2070. Several other oil companies in India have set similar but earlier targets for their own businesses. Representative Image (File image)

State-run oil marketing company Bharat Petroleum Corporation Ltd (BPCL) on Tuesday said that it would set up a renewable energy plant in Rajasthan. BPCL is not an outlier in the oil and gas space to tap green energy sources -- almost all of its Indian and global counterparts now plan to go green.
Here is why.

What is the need?

India has set itself a ‘net zero’ emissions target for 2070. Several other oil companies in India have set similar but earlier targets for their own businesses. State-run Indian Oil Corporation (IOC), for instance, has a net zero target for 2046 and Hindustan Petroleum Corporation Ltd (HPCL) and BPCL by 2040. BPCL on Tuesday said its expansion in renewable energy will help it achieve this goal. All three companies will target scope one and scope two emissions for these goals.

What are scope one and scope two emissions?