As a leader in India's energy sector, GAIL recognizes the urgent need to address climate change and is committed to reducing greenhouse gas (GHG) emissions, enhancing energy efficiency, and transitioning towards low-carbon and renewable energy solutions. In alignment with India’s Net Zero 2070 goal, GAIL has taken proactive steps to decarbonize its operations, setting an ambitious target. GAIL integrates climate risk assessment into its business strategy, aligning with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Scenario Analysis: Evaluating the impact of climate risks on GAIL’s operations under different warming scenarios.
Physical and Transition Risk Management: Assessing risks such as extreme weather events, policy changes, and market shifts due to the global energy transition.
Investment in Climate-Resilient Infrastructure: Upgrading facilities to withstand climate-related disruptions while enhancing operational sustainability.
GAIL is steadfast in its commitment to supporting India’s Nationally Determined Contributions (NDC) and achieving net-zero emissions. As part of this vision, GAIL has set an ambitious target of installing 1.7 GW of renewable energy capacity by 2030, reinforcing its dedication to sustainable energy development and environmental responsibility.
1. Enhancing Quality of Life: GAIL prioritizes sustainability by delivering environmentally friendly products and services that positively impact society and the environment.
2. Net Zero Target and Roadmap: GAIL has developed a GHG emission reduction roadmap aligned with global climate action goals to achieve carbon neutrality.
3. Natural Gas and Clean Energy: GAIL champions clean energy transition by promoting natural gas, green hydrogen, e-fuels, biogas, and renewable energy as sustainable and efficient energy sources.
4. Value Creation for Stakeholders: The company is committed to creating long-term sustainable value for employees, customers, investors, and society through economic growth, innovation, and social impact initiatives.
GAIL proactively addresses climate-related physical and transition risks by enhancing asset resilience to extreme weather events through robust design and monitoring systems. We regularly mitigate these parameters by investing in solar and wind energy projects to balance climate change impacts while implementing strict water conservation strategies, including improved storage and flood mitigation systems. Additionally, all coastal sites are equipped with flood prevention measures, and GAIL’s Crisis Management Plan (CMP) ensures operational safety during emergencies.
| Risk Type | Challenges | Mitigation Strategies |
|---|---|---|
| Physical Risk | Extreme weather, sea level rise, biodiversity loss | Developing climate-resilient assets, enhancing digitalization for real-time monitoring, and improving emission accounting. |
| Regulatory Risk | Compliance with evolving environmental laws | Ensuring adherence to all licenses, authorizations, and environmental regulations through a SAP-based tracking system. |
| Market Risk | Transition to clean energy reducing demand for fossil fuels | Investing in green fuels, ethanol-blended petrol, biofuels, and renewable energy to diversify the energy portfolio. |
| Technology Risk | High cost of adopting clean energy solutions | Implementing GHG reduction measures, including CO₂ valorization, CBG, Green Hydrogen, Renewable Energy projects, and afforestation. |
To develop a credible and science-aligned Net Zero Emissions roadmap, GAIL undertook a comprehensive assessment of its historical and projected GHG emissions. The Company has been reporting its greenhouse gas emissions since 2011, and time series data were analysed to understand trends and peak emission years. GAIL has adopted FY 2021-22 as the base year for its GHG emissions assessment and target-setting. For the purpose of projection, the highest emissions observed over the past three financial years have been considered as the baseline reference, ensuring consistency and comparability.
GAIL has adopted a science-based approach to formulate a comprehensive roadmap for achieving Net Zero emissions. GAILs Net Zero ambition is underpinned by a robust assessment of its GHG emissions footprint across the three scopes. Scope 1 emissions represent direct emissions from owned or controlled operations, while Scope 2 covers indirect emissions from the consumption of purchased electricity or steam. Scope 3 emissions, which often constitute the largest share in the Oil & Gas value chain, include indirect emissions from activities such as employee commute and the use of sold products like Natural Gas and Liquid Hydrocarbons.
Operational Decarbonization: GAIL Continues to use initiatives that reduce carbon emission including Electrification of NG Based equipments, Waste Heat Recovery project at Gandhar, the Flare Gas Recovery unit, and the venting-to-fuel unit at Vijaipur, as well as the use of portable compressors.
In FY 2024-25, we have rolled out transformative initiatives aimed at boosting efficiency across our infrastructure and the entire value chain like:
1. Interconnection to optimize fuel gas utilization at Vijaipur: A fuel gas interconnection line has been established between the LPG and C2C3 plants to reduce flaring and optimize fuel utilization.
2. Recovery of vented Natural Gas from Gas Turbine Compressor (GTC) at Compressor Station Chainsa.
3. Utilization of C2C3 Sphere Boil-Off Gas (BOG) at Vijaipur.
4. Recovery of Low Pressure (LP) Steam Heating for Heat Recovery Steam Generator (HRSG) Fuel Gas at Vijaipur.
5. Replacement of Old equipment with modern and new age energy efficient equipments.
6. Updation of inefficient existing equipment with their energy efficient versions at GAIL Pata.