Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Snam is strategically engaged on climate policy, holding mixed positions overall. Its engagement with climate-related policies appears to be mixed. However, in terms of the transition of the energy mix, Snam advocates for the long-term role of fossil gas in the energy mix, alongside its support for 'renewable' and 'low-carbon' gases.
Top-line Messaging on Climate Policy: Snam appears to be supportive of increased climate ambition in its top-line communications. On the company website, accessed in January 2023, Snam stated support for the EU’s 2050 climate neutrality target. The company also supported GHG emissions reductions in line with 1.5°C target in its 2021 TCFD Climate Change Report, while also stating support for the Paris Agreement in its 2021 Annual Report, both published in April 2022. Snam appears to support the need for climate change regulation, such as in 2021, where it called for a “significant increase in ambition” in regard to the EU policy framework.
Engagement with Climate-Related Regulations: Snam takes a mix of positive and negative positions on climate-related policies in the EU. In a January 2021 post on Twitter, Snam stated support for the EU’s updated 2030 GHG emission reduction target. On the other hand, the company’s position on reforms to the EU Emissions Trading System (ETS) appear to be more mixed. In a February 2021 consultation response on the EU ETS, Snam supported increasing the number of allowances being auctioned in the scheme, but did not appear to support increasing overall ambition to the policy.
Snam does not appear to support EU energy efficiency legislation, and has advocated for fossil gas technologies to be included in energy efficiency measures in the EU Energy Performance of Buildings Directive in March 2022 consultation comments, and in the EU Energy Efficiency Directive in November 2021 consultation comments. Snam also advocated for measures to weaken the EU Carbon Border Adjustment Mechanism including export rebates for industry in separate November 2021 consultation comments. Meanwhile, in April 2022 consultation comments, Snam advocated to weaken the EU Methane Regulation for the energy sector, by calling for less frequent measures for leak detection and repair, and not supporting the inclusion of imported fossil fuels.
Despite supporting higher 2030 renewable energy targets under the EU Renewable Energy Directive, Snam advocated for the inclusion of non-renewable low-carbon fuels in the policy in a February 2021 consultation response, and does not appear to support strict measures for renewable hydrogen production under the Delegated Act for Renewable Fuels from Non-biological Origin. The company signed a joint letter to EU policymakers in December 2021 advocating against measures, including the additionality principle, instead calling for flexible approaches to renewable hydrogen production.
Positioning on Energy Transition: While Snam appears to support the need to decarbonize the energy mix in its top-line messaging, it also appears to promote the long-term role for fossil gas. In January 2023, Snam CEO Stefano Venier called for new investments in fossil gas infrastructure in Africa and Europe. On its corporate website, accessed in January 2023, the company also supported the long-term role of fossil gas in the transport sector, labelling liquefied natural gas (LNG) a clean and efficient fuel. In April 2022 consultation comments on the EU Hydrogen and Gas Decarbonization Package, Snam advocated for measures proposed on fossil gas and hydrogen blending, while also supporting an expansion of renewable and low-carbon gases.
Snam also advocates for a greater role of green hydrogen in decarbonizing the economy. The company’s former CEO, Marco Alverà, advocated in support of green hydrogen, commenting in 2021 in Repubblica that it “can represent the ideal solution to decarbonize some important industrial sectors, in particular to produce zero-emission steel in the long term.” Alvera also supported the expansion of green hydrogen and stated high-level support for the UK’s Hydrogen Strategy in The Independent in September 2021.
Industry Association Governance: Snam publicly discloses a limited list of industry association memberships, without providing details on the type of membership and role within each industry association, their climate policy positions, how the company influences or attempts to influence their climate policy positions, governance processes for assessing and/or resolving potential cases of misalignment. The company has not published a review of its industry association memberships. Snam retains a membership to Gas Infrastructure Europe and the Confederation of Italian Industry (Confindustria), two industry associations actively and negatively engaged on EU climate policy and promoting the long-term role of fossil gas in the energy mix.