Legislation regulates our operations with regard to environmental matters as well. All of our refineries must have valid environmental permits.
The operations of our refineries in the EU (Porvoo, Naantali, and Rotterdam) are regulated by statutory environmental permits issued by the local authorities in accordance with EU legislation. These set the requirements for emission limits, reducing emissions, knowing the impacts of emissions, and reporting. Neste's refinery in Singapore is regulated by local environmental legislation, which has the same objectives as the EU's environmental regulations.
Best Available Technology (BAT) sets new requirements
Under the Best Available Technology (BAT) principle, the conditions of environmental permits and the limits set out in them must be based on emission levels that can be achieved using the best available technology. The application of the European Union's BAT requirements for oil refineries entered into force in 2014, and the operators have four years to make the changes required by the new regulations. We have begun preparations to meet the new BAT requirements.
Refineries in the European Union covered by emissions trading
Carbon dioxide emissions released by our Porvoo and Naantali refineries come within the scope of the EU's Emissions Trading System. The renewable diesel refineries in Rotterdam and Singapore, in contrast, are not covered by the emissions trading scheme. Plants coming within the scope of the scheme require an emission permit, and an independent third party annually verifies the monitoring carried out at our plants and their reporting. The Porvoo and Naantali refineries have emission permits for the period 2013–2020.
We procure the majority of the additional emission allowances we need through the EU's Emissions Trading System. Some of our allowances have been covered through our investment in Greenstream's Climate Opportunity Fund.