BP’s Global Environmental Products (GEP) business helps to enable projects that reduce or remove GHGs and generate environmental credits for use in carbon emissions trading markets. One example of this is the GEP portfolio of forestry projects. Forestry projects include those that improve the management of forests to promote carbon sequestration as well as afforestation projects that generate carbon credits during the growth of a newly planted forest. In addition to enhanced sequestration, forestry has multiple other benefits including biodiversity, water quality and soil management.
GEP works with project developers and landowners early on to help them finance their projects. From an early stage in the project GEP engages with the project developers and consultants to ensure forest inventories, modelling and project documentation are completed to high standards and according to the program requirements. GEPs experience in offset project activities and programs also enables the team to support projects and validate timelines and forecasts throughout the process.
BP partnered with Elion Resources to purchase China Certified Emissions Reductions (CCERs) from Elion’s forestry project in the Kubuqi Desert. Through this deal BP will support the preservation of existing carbon stocks on almost 1,400 square kilometres of desert oasis in the Inner Mongolia Kubuqi Desert. This agreement will also provide further support to Elion to develop further projects on ecological restoration in China. The Kubuqi desert, the 7th largest desert in China, is 800km away from Beijing. To date, Elion has devoted 30 years to the restoration of Kubuqi’s ecosystem and has undertaken a series of China’s national eco-projects including the Three-North Shelter Forest program and the 2022 Beijing Winter Olympics project.
The Finite Carbon-Colville Improved Forestry Management Project is designed to preserve the current forest carbon stocks on nearly half a million acres of forest land in Washington state. Finite Carbon managed the project development, while BP has facilitated the project through the purchase of credits generated from the project over a five-year period, creating a steady income stream for the Confederated Tribes of the Colville Reservation. The relationship between BP, Finite Carbon and the Confederated Tribes of the Colville Reservation is crucial when it comes to generating carbon credits supporting the operation of the California Cap and Trade scheme.
How does the project contribute to carbon reduction?
BP believes that carbon pricing is the most effective way to limit greenhouse gas emissions. Offsets are created from emission reduction project activities (including Improved Forestry Management) which are outside of the cap, stimulating investment in emission reduction activities.
In September 2017 approximately 13 million offsets (representing ~13MtCO2e of emission reductions/removals) were issued by the CARB on behalf of the project, meaning that Colville IFM is the largest ever carbon offset project within the California Cap-and-Trade program.