BP Aims for Net Zero Carbon Emissions by 2050 -- Update
February 12 2020 - 9:16AM
Dow Jones News
By Adriano Marchese
LONDON--BP PLC said it will aim to reduce its net carbon
emissions to zero by 2050 and restructure its oil-focused
businesses to better navigate a transition to other fuels--a
dramatic pledge by one of the world's biggest oil companies as the
industry faces growing investor and consumer pressure over fossil
fuels.
The promise is the latest in a series of commitments, over
decades, by big oil companies to reduce emissions associated with
their operations. Those efforts have had mixed results. BP, for a
time more than a decade ago, rebranded itself "Beyond Petroleum,"
and committed to ramping up production of renewable energy, like
solar and wind, before abandoning that effort.
Amid recently heightened scrutiny over global warming, however,
investors and consumers have ratcheted up pressure on big companies
to reduce the environmental toll of their businesses. Many big,
institutional investors have asked companies to make reducing
emissions a priority--threatening to pull investments in some
cases.
The 2050 deadline represents the time at which BP, one of a
handful of oil supermajors, hopes to be net carbon "neutral." At
that point, it says, carbon emissions from its oil and natural gas
operations would be completely offset by reductions from
more-efficient production and carbon "removal" and "sink" efforts.
A carbon sink typically refers to a natural reservoir, like a
forest, that can absorb carbon.
BP didn't say what specific technology it was counting on to
obtain these reductions. It also didn't commit to any new
investment. BP said it currently emits about 55 million metric tons
of carbon equivalent.
It said it would strive to reduce the carbon intensity of its
oil and gas production by 50% by 2050 or sooner. It promised to
install new methane measurement technology at its operations to cut
their methane intensity by 50% by 2023.
BP also promised to boost investment in non-oil and gas
businesses, and reorganize the company into four divisions that
would help it reach these goals. A "production and operations"
division would strive to unite all operations under one roof. It
would also create a natural "gas and low carbon energy" unit, which
would focus on developing gas and low-carbon solutions, including
hydrogen power.
In 2019, the company began expanding its low-carbon business,
increasing ownership in its solar joint venture, Lightsource BP, to
50%, as well as completing the formation of its new Brazilian
biofuels and biopower joint venture, BP Bunge Bioenergia.
"It is clear to me, and to our stakeholders, that for BP to play
our part and serve our purpose, we have to change," Chief Executive
Bernard Looney said. Mr. Looney was expected to detail his plan
later Tuesday. He took the top job earlier this month.
Write to Adriano Marchese at adriano.marchese
(END) Dow Jones Newswires
February 12, 2020 09:01 ET (14:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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