Energy trader Gunvor to cut emissions by 40%, sets up renewables arm

LONDON, March 30 (Reuters) - Energy trader Gunvor Group aims to cut its Scope 1 and 2 emissions by 40% in absolute terms by 2025, the company said on Tuesday, and has set up a new subsidiary to invest in non-hydrocarbon projects.

The Geneva-based firm, which is among the top five global oil traders, aims to cut emissions it produces directly, and those from electricity it uses, against its 2019 total of 1.9 million tonnes of carbon dioxide equivalent.

Its new unit will invest in biofuel, renewable power projects such as solar and biomass, and in the commercialisation of alternative fuels like hydrogen and ammonia, it said.

The new company, called Nyera, or New Era in Swedish, will be allocated at least 10% of Gunvor’s net equity, amounting to at least $500 million with leverage over the next three years, it added. (Reporting by Julia Payne; Additional reporting Dmitry Zhdannikov; Editing by Jan Harvey)