GHG Emissions, Industrial - March 28, 2019
BP commits $100 million for emissions reductions
BP announced that it has established a $100 million fund for projects that will deliver new greenhouse gas (GHG) emissions reductions in its Upstream oil and gas operations. The new Upstream Carbon Fund will support BP’s efforts to achieve targets set in 2018, including 3.5 million tonnes of sustainable GHG emissions reductions across the BP Group by 2025 and a methane intensity of 0.2%.
“A year ago we challenged everyone at BP to reduce emissions in our operations and they have responded overwhelmingly, said Bernard Looney, Upstream chief executive, in a statement. "This $100 million investment is designed to build on that momentum. It will fund ideas both big and small because everything counts in our transition to a lower carbon future and everyone at BP has a role to play.”
In the year since BP announced it targets, BP’s total direct GHG emissions fell by 1.7 million tonnes CO2 equivalent, despite a 3% growth in Upstream oil and gas production on the same basis. By the end of 2018, BP had generated 2.5 million tonnes of sustainable GHG emissions reductions throughout its businesses since 2016. BP’s methane intensity for 2018 was 0.2%, in line with the target.
The Upstream Carbon Fund will be in addition to the $500 million that BP invests in low carbon activities each year, including investment in venturing activities and into its significant alternative energy business. BP is also a founding member of the Oil and Gas Climate Initiative, which brings together 13 of the world’s largest energy companies and has set up a $1 billion investment fund to address methane emissions and other issues.
BP’s targets for reductions in operational emissions are part of its ‘reduce-improve-create’, or RIC, approach to the energy transition, which also aims to improve its products to allow customers to reduce their emissions and to create and grow new low carbon businesses. The projects that are awarded funding will help to deliver the further emissions reductions necessary to achieve the RIC targets.