BP commits $100 million to fund new emissions reduction projects
The fund will support projects in BP’s Upstream business
New Delhi: BP today announced it has established a $100 million fund for projects that will deliver new greenhouse gas (GHG) emission reduction in its Upstream oil and gas operations. The new Upstream Carbon Fund will provide significant support to BP’s work generating sustainable greenhouse gas emissions reductions in its operations, the firm said.
In April 2018, BP set targets aimed at reducing its emissions and advancing the energy transition, including achieving 3.5 million tonnes of sustainable GHG emissions reductions across the BP Group from 2016 to 2025 and targeting a methane intensity of 0.2 per cent.
In the year since then, BP’s total direct GHG emissions fell by 1.7 million tonnes CO2 equivalent, despite a 3 per cent growth in Upstream oil and gas production on the same basis. By end 2018, the company had generated 2.5 MT of GHG emissions reductions throughout its businesses since 2016. Its methane intensity for 2018 was 0.2 per cent.
“A year ago we challenged everyone at BP to reduce emissions in our operations and they have responded overwhelmingly. This $100 million investment is designed to build on that momentum. It will fund ideas both big and small because everything counts in our transition to a lower carbon future and everyone at BP has a role to play,” Upstream chief executive Bernard Looney said.
Under the new initiative, funding totalling up to $100 million will be made available over the next three years to support new projects in the Upstream that will generate additional GHG emission reductions. Businesses and employees throughout BP’s Upstream operating businesses are being invited to come up with ideas and propose projects for this funding.
The Upstream Carbon Fund will be in addition to the $500 million that BP invests in low carbon activities every year, including investment in venturing activities and into its alternative energy business. BP is also a founding member of the Oil and Gas Climate Initiative, which brings together 13 of the world’s largest energy companies and has set up a $1 billion investment fund to address methane emissions.
BP had in January announced that progress towards the sustainable emissions reductions target has now been incorporated as a factor in the remuneration of 36,000 employees across the Group.