Sonatrach Commits to Carbon Neutrality by 2050 with Green Strategy

✍️ BY: Dr. Hana Saada

A $1 Billion Reforestation Plan, Zero Methane Target, and Clean Energy Investments Define Algeria’s Boldest Environmental Turn

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Algiers, Algeria | June 29th, 2025 — In an unprecedented move reflecting Algeria’s national commitment to climate action, Sonatrach, Africa’s largest state-owned oil and gas company, has unveiled a comprehensive and ambitious climate strategy aimed at achieving carbon neutrality by 2050. The company’s blueprint combines technological innovation, mass-scale reforestation, energy transition, and environmental stewardship, positioning Sonatrach as a regional leader in sustainable development.

During the Second Forum on Sustainable Economy held on Saturday, Fouad Saoudi, Director of Sonatrach, affirmed the group’s deep awareness of its climate responsibility, stating:
“Sonatrach is fully aware of its responsibility in the face of climate risks and is determined to contribute meaningfully to global efforts.”

A Strategic Alignment with the Paris Agreement and SDGs

Sonatrach’s newly adopted climate strategy is fully aligned with the United Nations Sustainable Development Goals (SDGs), the UN Framework Convention on Climate Change, and the Paris Agreement to which Algeria is a signatory. The initiative aims to achieve a critical balance between greenhouse gas emissions and their natural and technological absorption by the second half of the 21st century.

This strategic pivot was formally adopted on July 22, 2024, and reinforced through the adoption of a robust HSE (Health, Safety, and Environment) policy on October 31, 2024. The policy enshrines Sonatrach’s operational commitment to environmental protection and sets the framework for implementation programs across all activity chains.

Core Pillars of the Climate Strategy

According to Saoudi, the climate plan rests on several structural pillars:

• Enhancing energy efficiency and optimizing energy consumption.

• Cutting greenhouse gas emissions, particularly CO₂ and methane.

• Scaling up renewable energy integration.

• Deploying both natural and technological carbon sequestration solutions.

• Investing in emerging low-carbon fuel sectors, including green hydrogen.

The strategy is underpinned by a broad action plan encompassing investment, capacity building, technology transfer, and progressive integration of clean energy industries.

420 Million Trees: A Green Investment for Future Generations

The cornerstone of Sonatrach’s natural sequestration initiative is a bold reforestation program—an ecological feat set to plant 420 million trees across 520,000 hectares over the next decade. The initiative carries a budget of $1 billion and represents one of the largest afforestation efforts in the MENA region.

“This is not just about planting trees; it is about restoring ecosystems, capturing atmospheric carbon, and anchoring our operations within a resilient environmental framework,” said Saoudi.

Zero Routine Flaring by 2030

Another flagship measure is Sonatrach’s commitment to end routine gas flaring by 2030. Saoudi announced significant progress, revealing that between 2020 and 2023 alone, the company successfully reduced flared gas volumes by 1 billion cubic meters—a milestone reflecting a clear trajectory toward decarbonization.

Methane Emissions: A Zero Target by 2030

Sonatrach also committed to achieving zero methane emissions by 2030, supported by a sophisticated Leak Detection and Repair (LDAR) program already underway. The initiative focuses on tracking and eliminating fugitive methane leaks, a critical aspect of methane abatement efforts globally.

Solar and Hydrogen: Driving Algeria’s Energy Transition

The climate strategy includes the launch of major renewable energy projects, notably photovoltaic plants in Beriane and Oum El Bouaghi, and an accelerated rollout of green hydrogen projects. These initiatives signal Sonatrach’s decisive entry into the clean energy economy and its intention to play a transformative role in regional decarbonization.

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