This is just the latest step in our 20-plus year journey – but a significant one, and one we plan to build on in the years to come.
We'll review our targets and aims regularly so we can keep them up-to-date with changes in our portfolio, protocols and other factors.
We’ll offset any increase in our operational emissions above 2015 levels that’s not covered by our sustainable reductions activity. This means that, out to 2025, we’ll have no net increase in our carbon footprint, even as our production grows.
We consider carbon offsetting a valuable supplement to our own emissions reduction activities and is essential for reaching the Paris goals. It is an effective, flexible and low-cost way for society to reduce global greenhouse gas emissions. In particular, natural carbon solutions through land use and forestry can deliver large scale emissions reductions.
Our operating businesses will deliver this through improved energy efficiency, fewer methane emissions and reduced flaring – all leading to permanent, quantifiable GHG reductions. We only count a sustainable emissions reduction in the year it occurs, but we expect to get the benefit of the reduction every year after that.
This target includes the methane emissions from our operations where gas goes to market as a percentage of that gas. In 2017, this accounts for more than 90% of methane emissions from our operated oil and gas assets.
We don’t include methane emissions that result from gas that is only reinjected, recycled or associated with assets where BP doesn’t produce the gas.
We are pursuing or considering lower emission opportunities across the various stages of the gas value chain. This could include:
We are improving our products to help consumers lower their emissions. We provide customers with fuel for transport, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
Many of our products and services have been accredited with our Advancing Low Carbon programme.
We have carbon offsetting programmes to enable individuals and business customers reduce their carbon footprint.
We’ve developed more than 20 carbon neutral products and services through the use of advanced technology and our Target Neutral offsetting programme.
We’re also looking at ways to help our national partners navigate the energy transition – through our natural gas, renewables, solar and offsetting businesses.
BP has been in the renewables business for more than 20 years – we’re one of the largest operators among our peers and we’re expanding as we see more opportunities. Our focus areas are biofuels, biopower, wind and solar.
We also plan to invest around $200 million every year to help incubate and grow lower carbon solutions. We are doing this so we can learn fast and scale up where we can. Our focus areas are carbon management; advanced mobility; bio and low carbon products; digital transformation; and low carbon power and storage.
Our near-term plan is to allocate at least $500 million of expenditure a year for lower carbon start-ups, ventures and renewables. We view these activities as core to our strategy – with the potential to make a real contribution to our future.
The $500 million includes the $200 million for low carbon solutions with the balance going towards our renewables businesses and acquisitions. This does not include money spent on operational emissions reduction activities and research into more efficient products and operations.
The Oil and Gas Climate Initiative – currently chaired by BP’s group chief executive Bob Dudley – brings together 10 oil and gas companies working to reduce the GHG emissions from our industry’s operations and the use of our products.
Their $1billion fund invests in promising technologies and business models that have the potential to significantly reduce greenhouse gas emissions. Their areas of focus are carbon capture, usage and storage; reducing methane emissions; reducing transport emissions; and improving energy efficiency in industry.