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In the latest pledge for net zero carbon emissions from an oil major, BP said on Wednesday that it aims to become a net zero company by 2050 or sooner.
A week after new CEO Bernard Looney took over from Bob Dudley as BP’s boss, the UK-based supermajor unveiled a plan to achieve net zero carbon footprint across BP’s operations on an absolute basis by 2050 or sooner. The oil major also aims to halve the carbon intensity of the products it sells by 2050 or sooner, joining other majors such as Shell and Equinor which also target to reduce the carbon footprint of the energy products they sell.
Last week, Equinor unveiled a plan to reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50 percent by 2050. Shell has also set short-term targets for reducing the net carbon footprint of the energy products it sells.
BP, for its part, plans to install methane measurement at all its major oil and gas processing sites by 2023 and has plans to reduce methane intensity of operations by 50 percent. The group will also target to raise the share of investment in non-oil and gas businesses over time.
Yet, BP will continue to stick to its fundamental commitment to shareholders to grow sustainable free cash flow and shareholder distributions over the long term, to cut debt, and to deliver its 2021 free cash flow targets.
Commenting on the ‘net zero’ plan, CEO Looney said in a statement:
“This will certainly be a challenge, but also a tremendous opportunity. It is clear to me, and to our stakeholders, that for BP to play our part and serve our purpose, we have to change. And we want to change – this is the right thing for the world and for BP.”
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“Looney deserves support and credit for starting BP on the journey towards carbon neutrality and policy leadership,” Fred Krupp, President, Environmental Defense Fund, said, commenting on BP’s plan.
Greenpeace UK also commented, saying: “Bernard Looney wants the company to be seen as kinder and cleaner, committed to tackling climate change. But unless he pulls BP out of the fossil fuel business, anything else is just spin.”
“BP’s net zero carbon ambition might sound impressive, but means little in practice. The truth lies in where BP puts its money – pumping billions of dollars into new oil and gas shows it’s not serious about climate change,” Jamie Woolley of Greenpeace UK said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.