This scope is basically outlined by legal texts published within the so called Climate and Energy package, which entered into force in June 2009. This package sets climate and energy targets to be met by 2020 (the "20-20-20" targets) meaning a mandated reduction in GHG emissions by 20%, 20% of EU energy consumption from renewable resources and a 20% reduction in primary energy use. In addition, it sets requirements for limiting CO2 emissions from fuels over their whole life cycle, from well to wheel. Also, it defines a playing field for carbon capture and storage. MOL Group activities are affected by all of these legal elements, giving us direction in our climate change strategies.
We are dedicated to addressing the individual parts of the package through distinct contributions. MOL’s GHG reduction efforts are described in detail in the section ‘Reducing GHG Emissions’. This way we strive to improve our position against the CO2 benchmarking system developed by the European Commission (as an act serving to implement certain provisions of revised ETS directive). Within the scope of the directive on the promotion of the use of energy from renewable sources, we are investigating how to utilize geothermal potential in Hungary and Croatia and the potential to use biogas produced from organic waste to support our energy demands. In terms of the fuel quality directive, we are working on second generation biofuel research, as well as on using algae oils as third-generation bio-fuel feedstock for biodiesel production.
We in MOL Group view all these developments as a significant challenge and our goal is to identify opportunities resulting from a carbon-constrained economy. Our approach to these challenges fully matches the Climate Change Statement issued at the end of 2009 by The Board of Directors of MOL Group.