By Adriano Marchese
BP PLC said Wednesday that it has set a new target to become a net-zero carbon-emissions company by 2050 or sooner, which will cover emissions produced from all its world-wide operations.
The British oil major said its net-zero greenhouse-gas emissions initiative will be supported by 10 aims.
One aim will be to bring its oil-and-gas production to zero on an absolute basis, which is measured in terms of reduction in total greenhouse-gas emissions, rather than reductions in carbon intensity per unit of energy. It aims to do this across all of its operations.
The company said the term net zero refers to greenhouse-gas emissions effectively being cancelled out by carbon sinks, removals or reductions.
Attaching a figure to its ambition, BP said the delivery of its aims would equate to cutting current production of around 55 million metric tons of carbon equivalent a year to net zero.
BP said it would also increase the proportion of investment into non-oil and gas businesses over time, something that it has already begun to do.
In 2019, the company began expanding its low-carbon business, increasing ownership in its solar joint venture, Lightsource BP, to 50%, as well as completing the formation of its new Brazilian biofuels and biopower joint venture, BP Bunge Bioenergia.
"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," Chief Executive Bernard Looney said.
Not only will the company shift its own production toward more sustainability, BP said that it would be more active on the advocacy front toward supporting policies that promote the net-zero goal, including carbon pricing.
The idea of putting a price on carbon has become more and more prevalent as a means to reducing emissions and promoting investment in clean or green options.
The company said it would launch a new team to help countries, cities and large companies decarbonize.
This would work toward the aim of helping its customers reduce their emissions by halving the carbon intensity of the products it sells, again by 2050 or sooner, BP said. This would entail offering customers more and better choices of low- and no-carbon products.
"Energy markets are changing, driven by climate change, technology and societal expectations, and the board supports Bernard and his new leadership team's ambition for BP," Chairman Helge Lund said.
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