A fifth of the world’s GHG emissions are now covered by carbon pricing systems, double the coverage from just five years ago.
We expect around two thirds of BP’s direct emissions will be in countries subject to emissions and carbon policies by 2020.
BP has played a major role in helping governments design their trading systems, and we’ve been active as a trader in the world’s current emissions trading systems since their inception.
Pricing carbon adds a cost to our industry’s production and our products – but it also benefits the sector by providing a roadmap for future investment and a level playing field for all energy sources.
We became a founding member of the US-based Climate Leadership Council in 2017. The council is considering a carbon tax that would be returned to citizens in the form of dividends.
We are also working with our peers and other companies, governments and civil society to help support the expansion of carbon pricing through the Carbon Pricing Leadership Coalition.
To help anticipate greater regulatory requirements affecting our GHG emissions, we use a carbon cost when evaluating our plans for large new projects and ones where there could be material emissions costs.
In designing our new Glen Lyon vessel in the North Sea, for example, we introduced a flare gas recovery system to reduce GHGs reaching the atmosphere and we recover waste heat from the vessel’s turbines for use in operations.
In industrialized countries, our internal carbon price is currently $40 per tonne of CO₂ equivalent, and we also stress test at a carbon price of $80 per tonne.