Eni strives to adopt, in all contexts in which it operates, strict environmental protection standards that comply with the highest European and international standards. Eni's use of the best available technologies and environmental monitoring systems have allowed the Company to achieve optimal results, particularly as regard atmospheric emission indexes and water consumption, even in light of its operations in facilities whose activities are considered by European legislation to have a significant impact on the environment. This performance is the result of sizeable investments in low-impact technology and the adoption of a unified HSE Management System model in 2003. Currently, nearly all of the Company's key operating unit management systems have obtained ISO 14001 certification. Environmental ISO 14001 certifications in 2008 grew by 7%; ISO 14001 certifications totalled 123 and EMAS registrations totalled 11 (9 in 2007).

CERTIFICATION AND REGISTRATION OF MANAGEMENT SYSTEMS(KEY PLANTS) UNDER ISO 14001 - EMAS

Eni's main production units in Europe have begun pursuing EMAS registration (site- or sector-specific), while numerous foreign associated companies, petrochemical plants and gas pipelines have obtained the certification integrated with safety management systems (OHSAS 18001), quality management systems (ISO 9000) or both (certificates of excellence).
In the E&P sector, 23 out of 35 subsidiaries obtained ISO 14001 certification, in line with expectations. One of the strong points of the management system is the technical training available on environmental topics. This represents one of the main areas of focus in 2008 with 40,970 training hours offered and 5,495 participants. Specific activities designed to spread and maximize the skills gained within the Company and a dedicated Intranet site contribute to complete a system that is directed to the spread of a technical culture. In 2008, the testing phase began for a new centralized environmental computer system that will allow the collection of environmental data for significant sites as defined under the European Pollutant Release and Transfer Register (PRTR) regulation. A waste management database will also be created.

Water as a Primary Resource: Conservation and Protection

Growing needs for fresh water brought on by the global demographic explosion, the extension of areas susceptible to desertification and the reduction of surfaces covered by non-human ecosystems have decreased the availability of fresh water for the poorest populations and have increased global attention on protecting our water resources.
Despite an increase in activities involving the extraction and transformation of oil products, Eni has maintained its fresh water consumption nearly constant in recent years by gradually reducing water usage per processed unit. The use of treatment technologies and steady increases in water recycling will allow a gradual decrease in the overall amount of fresh water used in coming years (estimated at 20% for the 2009-2012 period net of new acquisitions). At 3,260 million cubic meters in 2008, water withdrawals show a reduction trend compared to 2007. The withdrawal of fresh water was in line with 2007 consumption, while fresh-water recycling increased by 10% compared to the previous year as a result of significant investments, mainly in the petrochemical and refinment industry. In the E&P sector, the practice of water injection has a twofold advantage: it helps maintain pressure in the reservoir while reducing the impact on the environment by decreasing both waste from produced water and fresh-water withdrawals, which is of primary importance in environments such as deserts. In 2008, numerous water-injection projects were launced in Libya (Bouri, Bu Attifel, Wafa), Egypt (Belayim), Nigeria, Algeria, Indonesia and Congo. Research is also being conducted to evaluate the feasibility of this type of project in Kazakhstan (Kashagan) and Italy. The most significant projects include the ones in Belayim, where a potential re-injection of approximately 5.5 Mm³ of water is estimated for 2009, and in Bu Attifel which will allow for the development of a new water treatment production system capable of treating 4.8 Mm³/year, allowing at the same time to decrease fresh-water withdrawals. Once operational, Eni's water injection projects will allow the Company to avoid discharging more than 14 million cubic meters of waste water. In the refining sector, water re-utilization projects, which use purified groundwater for industrial purposes, led to a 6% decrease in fresh water withdrawals and a 35% increase in recycled water. Water consumption in 2009 is expected to decrease by 14% compared to 2006 (approximately 3 million m³). In the petrochemical sector, a series of measures were planned with the aim of reducing fresh-water consumption by 20% through the re-utilization of cooling water and the introduction of groundwater treatment systems by 2010.
In terms of electricity production, the index of water comsumption, in m3/kWheq, has decreased by 75%, from 0.0594 in 2000 to 0.0148 in 2008.

Climate change and energy efficiency

GHG emissions decreased by 7.6% compared to 2007, a significant achievement considering the increase in hydrocarbon production. In particular, the Exploration & Production sector, which accounts for approximately 50% of Eni's emissions, decreased emissions by 7% compared 2007 by reducing gas flaring, even considering the new acquisitions in the Gulf of Mexico, Congo and Turkmenistan and production increases in Angola, Congo, Egypt, Pakistan and Venezuela.
The emissions decreases in the refining and thermoelectric sectors are in part due to lower levels of production in 2008. During the transportation of gas in Italy, line re-compression activities of natural gas reduced emissions by 3%.
Emissions indexes in all key sectors indicate a flat or declining trend over the last five years as the result of measures which implemented the carbon management strategies outlined in the following sections (also refer to the section entitled "Eni and the future of energy").
Eni participates in the European Emissions Trading system with 60 plants, including 56 in Italy and 4 abroad.
Emissions for the 60 plants totalled 25.3 million tons in 2008, resulting in a surplus of allowances assigned of 0.58 million tons. For the 2009-2012 period, Eni expects to record a deficit of 6.1 million tons. Eni will cover the deficit by acquiring allowances on the Emissions Trading market and, in the medium term, by implementing CDM projects.

Gas flaring reduction projects

The objective of the currently underway gas flaring reduction projects is to decrease gas flaring emissions by 70% by 2012 compared to the 2007 emission values. Initiatives aimed at reducing gas flaring in Algeria, Congo, Libya and Tunisia will require investments of 1.26 billion Euros in the 2009-2012 period. This amount does not include investments of Eni's associated Company in Nigeria. Of particular importance in 2008, a flaring down project associated with the first phase of the Gaz du Sud project in Tunisia was completed, and progress continues to be made on all initiatives in Nigeria, Congo, Libya and Algeria.
In Nigeria, the Gas Master Plan, which outlines various projects relating to the completion of compressor stations and the expansion of the network of existing gas pipelines, continued. The objective of the plan is to eliminate the practice of gas flaring in the Country. Also in Congo projects aimed at eliminating emissions from gas flaring by 2012 continued. Of particular importance in 2008 was the completion of the repowering of the thermoelectric plant in Djeno.
The completion of the projects between 2010 and 2012 will allow for further reductions in gas flaring emissions (also refer to the section entitled "Living in the world"). With regards to the assets acquired in 2007 in Russia, Eni immediately implemented a program to gradually decrease the amount of gas burned in flares, resulting in the elimination of emissions from flaring as of 2008 and contributing significantly to the overall 2008 performance.

Energy efficiency

Increasing energy efficiency is a priority for Eni, and all of the Company's operational sectors are involved in this effort.
Its CO₂ emissions figure for the thermal plus electric kilowatt-hour produced by the thermoelectric sector is approximately one-third less than the average Italian figure.
Eni's investment plan for maintaining the emissions factor to the level reached entails completing the Company's industrial plan with the construction of the last of the 13 planned combined-cycle plants. In 2008, two power units began operating at the Ferrara power plant.
Energy savings programs continued in the refining and petrochemical sectors. In 2008, the refining sector saved approximately 90,000 tons of CO₂.
The improvement in efficiency is structural, therefore an initiative implemented in one year generates savings in years to come. Savings amounting to approximately 127 ktoe/year will be achieved in the refining sector in 2012, with another 70 ktoe/year being achieved in the petrochemical sector. Eni continued its efforts to improve the efficiency of its IT and communication systems at its head offices in 2008 and completed an energy efficiency plan for its offices.
Finally, the Exploration & Production sector initiated a research project called "Energy Management in Up - Midstream of Oil and Gas Industry" aimed at defining a methodology and applying innovative technologies to achieve greater energy efficiency and lower levels of greenhouse gas in Eni's plants. An expenditure of 1.6 million Euros is estimated for the project.

Atmospheric emissions

In addition to its commitment to reduce greenhouse gas emissions, Eni believes that it is necessary to continue to pursue its objective of reducing atmospheric emissions caused by combustion.
In recent years, the use of lower impact fuels such as natural gas and more efficient combustion technologies has allowed for a reduction in the production of substances that are harmful to the atmosphere, mainly for large combustion plants, refineries and thermoelectric plants.
In 2008, NOx emissions increased for the second year in a row (+7% compared to 2007).
In particular the E&C and the E&P sectors show an increase respectively of 10.3% and 10.7%. The increase in the E&P sector was due to the inclusion of the Okpai facility in Nigeria within the scope of consolidation in 2008.
SO₂ emissions continued to decrease (-9%, on average, -11.5% in the refining sector) in all sectors as a result of the use of low-sulphur fuels. The use of low-emission combustion technologies is estimated to allow a 20% reduction in NOx emissions and a 30% reduction in SOx emissions net of new acquisitions by 2012. The technologies adopted in the thermoelectric sector have allowed Eni to avoid approximately 80,000 tons/year in SO₂ emissions and 20,000 tons/year of NOx emissions. The installation of VeLowNox burners, by the year 2012, will allow a further reduction in NOx emissions from 5860 t in 2008 to 5700 t expected for the year 2012.
The installation of low-emissions turbines continued in the gas transmission sector as well (reduction of NOx emissions by 4.5%). In Italy, this practice will allow an additional decrease in emissions for compression plants. The refining sector recorded a decrease in NOx and SO₂ in 2008 emissions due to lower production levels. After reducing the sulphur content of fuels and avoiding its emission into the atmosphere in past years (in anticipation of the European directive on fuels), Eni's production of low-emission fuels has allowed the reduction of NOx emissions for the end customer by optimizing combustion through the use of specific additives.
All business units engage in activities designed to monitor and control fugitive emissions. In this regard, monitoring plans have been initiated using innovative techniques, such as video-imaging. Furthermore, Leak Detection And Repair (LDAR) programs will be implemented and a Company-wide protocol for monitoring fugitive emissions will be put in place.

Oil spills

Eni has implemented a series of integrated measures aimed at reducing oil spills in the production, loading and transportation of oil products. Transportation technologies allow for the routine inspection, maintenance and evaluation of oil pipelines and transportation means and the use of airtight systems for loading and storage. In the E&P sector, 378 oil spills were recorded for a total of 7,024 barrels.
The total number of barrels spilled decreased for the second year in a row (-25%). A total of 28% of the volume spilled was due to sabotage, while the volume spilled due to accidents decreased by 30% compared to 2007.
In 2008, Eni participated and contributed to international initiatives such as:

- OSPRI Oil Spill Preparedness Regional Initiative: collaboration with Countries in the Caspian Sea area to increase the ability to respond to oil spills;

- COSPIP Coastal Oil Spill Improvement program: program aimed at developing strategies and build oil-spill-prevention equipment in the Barents Sea;

- GLWACAF Global Initiative West And Central Africa: project that involves area governments in developing reciprocal aid agreements;

- Oil in Ice JIP: project aimed at developing tools and technologies to increase the capacity to respond to oil spills in ice-covered waters;

- OSPREC Oil Spill Response Company: Company established with the purpose of minimizing the risk of oil spills along Algeria's coastline.

Also in 2008, Eni's oil spill response plans were revised within the framework of Exploration & Production activities in Angola, Australia, Indonesia, Egypt, Libya and Pakistan. E&P has continued to pursue its efforts to implement marine oil spill response systems by outlining a plan for identifying areas where improvements can be made. A preliminary gap analysis in the Gulf of Suez (Egypt), allowed the Company to monitor the operations of its associated companies in Egypt. Eni completed its Long-Term Weathering of Oils in Marine Environment project, a project that allowed the Company to study, in collaboration with Italy's Institute for Coastal Marine Environment and others, the toxicity and biodegradability of oil spills and contribute to new response methods. 

Waste management

In 2008, waste from production activities increased by about 97,600 tons compared to 2007 as a result of new drilling activities in Alaska and the disposal of drill cuttings in Nigeria and Algeria. Similar to the last four years, waste from reclamation activities accounted for more than 80% of the waste produced (see next section).
Eni continues to pursue its commitment to decreasing waste production by increasing recycled and recovered waste and therefore reducing dumping.
Since 2007, Eni has been working on a project aimed at monitoring and controlling the entire lifecycle of the waste produced by its business areas, with the objective of ensuring correct waste management and identifying opportunities for minimizing its production. Key activities in 2008 included the startup of the Exploration & Projection sector, a waste management assessment and the subsequent implementation of specific Waste Management Plans (WMP) in the Exploration & Producion sector. WMPs aimed at controlling and improving the quantity and quality of waste produced, with performance objectives defined annually.
The objective was reached by 11 associated companies in seven Countries (Algeria, Pakistan, Russia, Indonesia, Kazakhstan, Libya and Congo) and, in 2009, the program will be implemented in Nigeria, Egypt and Croatia.
KCO plans to use drill cuttings re-injection in its activities at the Kashagan field, allowing a drastic reduction in the amount of waste transported and dumped. Under the current WMP, a certain treatment (TCC) is used for oil-based cuttings that allows a disposable waste to be obtained while recovering the oily base for use in drilling mud.

Soil reclamation

Soil and groundwater protection is increasingly important in ensuring the correct functioning of ecosystems and the Sustainability of operations. Eni's efforts mainly focus on decommissioned or long-operating industrial sites often inherited from former managements. For this reason, Eni has chosen to consider all surfaces covered by industrial areas as potentially contaminated and therefore analyzes vast areas of land. In 2008, the overall economic commitment for environmental recoveries was equal to 417.5 million Euros.
This allows Eni to identify each contaminated area in detail and use the appropriate tools to isolate those areas and implement reclamation and restoration projects in collaboration with local and national authorities. In Italy, this commitment has led to the initiation of intense efforts at 63 sites out of a total of over 900, implemented primarily through Syndial, a Company specializing in the reclamation of contaminated sites and the management of residual industrial services. During the course of 2008, Syndial utilized circa 61% of the overall expense budget of Eni.
In 2008, Syndial continued reclamation activities in the Assemini site, where safety measures including a perimeter fence and groundwater treatment system were implemented on the 20-hectare area surrounding the facility, and Priolo, where a system was built for groundwater treatment that allows the reuse of treated water for industrial purposes. At Porto Marghera, electrokinetic and chemical oxidation technologies were used for the reclamation of contaminated areas.
Furthermore, the local administration completed and certified the reclamation of the Cengio area (about 20 hectares) for industrial reuse.
The petrochemical sector completed the safety measures involving the groundwater of Montova, Ferrara, Brindisi, Priolo, Gela and Sarroch. Technologies that were used included hydraulic barriers and/or the localized pumping of contaminated water.
In the refining sector, efforts focusing on groundwater reclamation in Italian refineries through pumping to allow water reuse and the environmental restoration of the fuel network continued. In 2008 the E&P sector successfully completed the pilot project Bioremediation that started in 2007 in Egypt. In 2009 investigation activities will identify reclamation areas in a 30 Km² desertic area.