Italian firm, Eni, plans to develop the carbon-laden Evans Shoal, now renamed the Verus project, making the company’s net zero commitments more challenging.

Eni’s plans are at odds with the objectives it pledged to the Italian investing public when raising €2 billion through its first sustainability-linked bond issue to retail investors.

This latest plan will be subject to Australia’s Safeguard Mechanism, meaning Evans Shoal/Verus will be exposed to higher carbon costs than other gas fields given it is estimated to contain up to 27% carbon dioxide.

As greenwashing claims have become a focus for regulators in the United States, Europe and Australia, Eni’s sustainability credentials should not only come under greater regulatory scrutiny, but investors should also be asking questions.