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We’re aiming to be a net zero company by 2050 or sooner and to help the world get there, too
Net zero means reaching a balance between emissions introduced to the atmosphere and emissions removed. To achieve it, we'll need governments, companies and consumers to work together to accelerate meaningful action. That's why bp is advocating for policies like carbon pricing.
TCI
The Transportation & Climate Initiative
TCI’s Memorandum of Understanding is out now. Governors can sign on to bring this progressive climate plan to their states. Why? Because transportation is the number one source of greenhouse gas emissions in the US, according to the EPA. TCI is designed to reduce it by 20-25% across the region, all while creating jobs, boosting the economy and modernizing infrastructure
The Transportation and Climate Initiative (TCI) is a regional collaboration seeking to improve transportation, develop a clean energy economy and reduce carbon emissions across 12 East Coast states and the District of Columbia. bp is actively supporting its adoption.
Modeled after RGGI and designed by state leaders, with help from the Georgetown Climate Center, the program would create a regional cap and trade program for transportation emissions. The policy aims for a 20-25% reduction in covered emissions in the first 10 years of the program, depending on the cap.
TCI will generate revenue that can be used to bring cleaner, modernized infrastructure to the region – including funds that can focus on underserved communities.
The US needs to release fewer emissions into the atmosphere. We also need to generate new jobs and revenue at this crucial moment. TCI does both. Estimates show TCI will:
Add jobs to the region, from high-tech roles to the construction of modernized infrastructure and more.
Increase regional GDP – studies predict a modest growth in GDP and disposable income that will help states recover.
Provide certainty for businesses. TCI sets out a plan that increases the cost of carbon emissions, and lowers the cap on how many are allowed, over time. That gives industries the stability needed to invest more in clean technologies – like renewable power generation, electric vehicle infrastructure, hydrogen fuels, advanced biofuels and more. And the jobs that come with them.
Reduce emissions 4X. Transportation is the largest source of pollution in most TCI states. TCI’s primary purpose is to reduce it by at least 20% in 10 years.
bp is actively advocating for states to sign on to TCI, taking the necessary executive, legislative and regulatory steps to participate in the program once it is finalized.
And we’re not alone in our support. bp has joined with business leaders, transportation companies, environmental groups and more to bring this policy to the east coast. We’ll continue to work together to get as many states signed on as possible. Learn more about our coalition.
RGGI
The Regional Greenhouse Gas Initiative
With over a decade of proven success, RGGI reduces emissions from the power sector, creates jobs and helps pave the way to a net zero carbon future
The Regional Greenhouse Gas Initiative (RGGI) is a successful cap-and-trade carbon pricing program for the power sector. Over the last decade, participating states have seen a range of benefits while emissions and electricity costs have decreased, according to the Center for Climate and Energy Solutions.
Established in 2009, RGGI limits carbon emissions from power plants1 by placing a regional cap on emissions and then requiring companies to buy or trade allowances to emit up to the limit of the cap. The cap decreases annually, so the allowance price rises every year. This system allows industry flexibility to meet reduction targets at the lowest possible cost.
Independent studies of the program show RGGI works for people, business and the planet. RGGI states also outpaced power sector emissions reductions in the rest of the country by 90 percent.*
bp publicly advocated for Virginia to join RGGI and was thrilled when the governor signed that bill into law in 2020. Now bp is actively encouraging Pennsylvania to benefit from the program along with its neighbors in:
Illinois Gov. JB Pritzker has laid out an ambitious agenda for comprehensive climate legislation
After three years of debate and effort, Illinois has the opportunity to pass significant clean energy legislation. Two bills – Path to 100 and the Clean Energy Jobs Act – have put forward strong ideas for climate policy. Together with the governor’s principles, these ideas will form the basis of a comprehensive bill that will help transition Illinois to a clean energy economy.
While details will be developed out of bipartisan working groups, Gov. Pritzker’s eight-part plan includes measures to implement market-based mechanisms like carbon pricing and encourage renewable energy. His principles are to:
Strengthen Utility Company Transparency and Ethics Requirements
Expand Consumer Affordability Protections
Make Illinois a Renewable Energy Leader and Phase Out Dirty Power
Implement a Market-Based Solution That Supports Clean Power and Clean Air
Electrify and Decarbonize Illinois’s Transportation Sector
Support Communities Transitioning to Clean Energy
Advance Equity in the Growing Clean Energy Economy
Enhance Energy Efficiency in Illinois
bp has gone on record applauding the governor’s principles, and we encourage legislators to explore new technologies like carbon capture, use and storage; renewable energy such as solar and wind; renewable natural gas; and private investment in electric vehicles. bp will continue to work with lawmakers to help achieve ambitious and comprehensive legislation to help Illinois reach net zero by 2050.
Washington legislation
Washington state legislation
bp is advocating for carbon policy in the Evergreen State, home to our Cherry Point refinery. Why? Because it’s good for business, good for the planet, and good for people
Washington is working hard to become the second state in the country with a comprehensive, economywide, market-based carbon pricing program. Well-designed policy will lower carbon emissions not only for one sector, but across the economy, and for the benefit of everyone in the state. The package of solutions under consideration in WA will work to make the entire economy cleaner by:
Incentivizing and rewarding innovation to reduce carbon emissions. If emitters have to reduce their footprint, businesses can offer new solutions that help them achieve those requirements.
Creating policy certainty that sends clear signals to businesses. The policies in Washington state set an ambitious but achievable schedule to reduce emissions and evolve operations. If we can plan for it, we can thrive within it.
Setting a new standard for the country and creating the opportunity to link Washington’s market to those in California and Oregon.
Learning from existing programs, in their successes and their shortcomings. Washington’s proposed legislation is stronger because of its predecessors.
Strengthening the state’s economy. The legislation aims to create revenue that can reach throughout the entire state.
Making climate goals achievable. Like bp, Washington has set an ambition to be net zero by 2050. A cap on emissions is the most effective and efficient way to get there.
bp is committed to being part of the solution. We’re working constructively to support the Climate Commitment Act (SB 5126), a cap and invest bill that is effective, comprehensive, sustainable and able to pass the legislature in 2021. Right now, we’re actively advocating for the passage of this bill and educating legislators on how progressive climate policies can help guide an effective transition into the energy economy of the future.
bp is also part of Clean & Prosperous Washington, a campaign working in the state to advance SB 5126. Learn more about their work.
We’ll keep doing our part to bring Washington state closer to net zero, starting with our own operations. And we’ll continue sharing what we’re learning to help develop policies that can shape a lower-carbon economy.
CCUS
Carbon Dioxide Geologic Storage Act
Illinois legislation would allow critical net-zero technology to flourish in the Land of Lincoln
The Illinois General Assembly is poised to establish a framework to allow carbon capture, use and storage (CCUS) projects in Illinois. CCUS is a key component to getting bp to net zero by 2050 or sooner, and to getting the world there too.
The geology of Illinois is rich in CCUS opportunities. CCUS keeps emissions from carbon-intensive industries from escaping into the atmosphere. Instead, they’re captured and either stored indefinitely, or used in manufacturing.
CCUS legislation can create jobs and reduce emissions—creating policy that’s good for the Illinois economy and the planet.
bp looks forward to working with lawmakers to make this critical carbon-reduction technology a reality in Illinois.
