Climate Policy Engagement Analysis
Climate Lobbying Overview: Neste is strategically engaged with global climate policy with both positive and negative positions. Neste supports state-level Clean Fuel Standards and EU renewable energy policies but appears to advocate for weaker sustainability criteria for biofuels and opposes the rapid electrification of road transport. Neste retains membership to some industry associations that are negatively engaged with climate policy.
Top-line Messaging on Climate Policy: In its 2023 Sustainability Report, published in March 2024, Neste supported GHG emissions reductions aligned with 1.5 degrees and a global 2050 net-zero CO2 emissions target. This report also supported the goals of the Paris Agreement. In a January 2024 joint statement, Neste also supported the EU’s 2050 net-zero goal. In its 2022 Sustainability report, published in March 2023, Neste called for higher ambition of the EU Fit for 55 package.
Engagement with Climate-Related Regulations: Neste supported the Packaging and Packaging Waste Regulation with some exceptions in an April 2023 consultation response, advocating for the introduction of incentives and targets to reduce virgin fossil feedstocks. Neste urged for the inclusion of renewable fuels as a compliance pathway in the EU’s CO2 standards for heavy-duty vehicles in a May 2023 consultation response. This position was echoed in Neste’s 2023 sustainability report, published in March 2024.
Neste also supported the EU Renewable Energy Directive’s sector specific renewable energy sub-targets for 2030, including for transport, in a May 2023 consultation response. In its 2023 sustainability report, published in March 2024, Neste also supported EU, national and Japan sustainable aviation fuel (SAF) mandates. Neste further supported a 'medium' or 'high' ambition scenarios for the UK SAF mandate and 'very high' scenario for the power-to-liquid sub-mandate that omits the 2025 target in a June 2023 consultation response accessed via freedom of information request. However, in a December 2022 consultation response, Neste advocated for the inclusion of food and feed crops under the Renewable Energy Directive’s list of sustainable feedstocks and opposed further restrictions on accepted feedstocks under the EU SAF mandate. Lastly, in a June 2023 consultation response, Neste supported the inclusion of transport under the EU Emissions Trading Scheme, but advocated it is maintained under a separate system.
Regarding US policy, Neste supported Hawaii’s proposed Clean Fuel Standard in March 2024 regulatory comments. Neste also supported increased ambition of California’s Low Carbon Fuel Standard (LCFS) by urging a more ambitious CO2 reduction increase and the inclusion of intra-state jet fuel in February 2024 regulatory comments. However, Neste appeared to argue that the Environmental Protection Agency lacked authority to enact GHG emissions standards for heavy-duty vehicles and advocated for the inclusion of renewable diesel in June 2023 regulatory comments.
Neste also appeared unsupportive of measures to protect land-based carbon stores under US clean fuel policies. Despite supporting the federal SAF blenders tax credit in February 2023 regulatory comments, through the ‘SAF BTC Coalition’, Neste advocated for weaker sustainability criteria for SAFs to protect land-based carbon stores under the SAF blenders tax credit and Clean Fuel Producers Credit in February 2023 and December 2022 US consultation responses. Neste also opposed a cap on lipid-based feedstocks under California’s LCFS in February 2024 regulatory comments. Neste further opposed a cap on crop-based biofuels under California’s LCFS in March 2023 comments.
Positioning on Energy Transition:On its corporate webpage, accessed in April 2024, Neste broadly supported a transition from fossil fuels to renewable e-fuels and green hydrogen, and supported a transition to renewable energy through RePowerEU in its 2022 sustainability report, published in March 2022. However, in a June 2023 consultation response, Neste advocated for the long-term use of liquid fuels over rapid electrification of road transport. Similarly, in a May 2023 consultation response, Neste supported a longer-term role for heavy-duty ICE vehicles powered by ‘sustainable renewable and low-carbon fuels such as biofuels, biogas and e-fuels’ over electric or fuel cell vehicles. Neste also appeared to oppose policies promoting a transition to electric vehicles in June 2023 US regulatory comments, promoting a long-term role for ICE vehicles powered by renewable diesel.
Industry Association Governance: Neste has disclosed a list of its industry associations on its corporate webpage, accessed in April 2024. Neste has not published a review of its alignment with its industry associations. Neste is a member of BusinessEurope, FuelsEurope and the International Air Transport Association which are negatively engaged on climate policy. Neste is also a member of the Consumer Goods Forum, European Chemical Industry Council, German Chemical Industry Association and Hydrogen Europe which have both positive and negative engagement with climate policy.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2024.