Energy Illustrated: bpNetZero edition | bp

Summary

In this special edition of 'Energy, Illustrated,' BP outlines its ambitious goal to achieve net-zero emissions by 2050. The company's strategy focuses on three key aims: becoming net-zero across all operations, targeting net-zero for carbon emissions from oil and gas production, and reducing the carbon intensity of sold products by 50%. BP explains the rationale behind focusing on scope one, two, and three emissions, emphasizing the importance of a collective effort from producers, consumers, and policymakers to transform the energy system and meet the global net-zero target.

Takeaways

• 🌟 BP has set an ambitious goal to become a Net Zero company by 2050 or sooner, aligning with global efforts to combat climate change.
• 🎯 Aim 1 focuses on achieving Net Zero emissions across BP's entire operations, including both direct (Scope 1) and indirect (Scope 2) emissions.
• 🛢️ Aim 2 targets Net Zero for the carbon emissions associated with the oil and gas BP produces, emphasizing the responsibility for the emissions generated at the point of production.
• 🔄 Aim 3 commits to reducing the carbon intensity of the products BP sells by 50% by 2050, encouraging a shift towards lower carbon energy sources.
• ♻️ BP's approach to Scope 3 emissions is strategic, choosing to focus on the production phase of oil and gas rather than the end-use of all products sold.
• 🌱 The script highlights the importance of a systemic transformation in the energy sector, involving producers, consumers, and policymakers.
• 🚗 For BP to achieve Net Zero, it's not necessary to account for the emissions from someone else's oil and gas production, as the focus is on direct impact and influence.
• 🌐 The script underscores the need for a collective effort to reach Net Zero, including changes in consumer behavior and supportive government policies.
• 🌿 BP's strategy involves leveraging various levers such as carbon offsets, carbon capture, and storage, but also emphasizes the necessity of a broader energy system transformation.
• 📉 The reduction in carbon intensity will be achieved through selling more electricity and renewable energy, which requires consumer adoption of low or zero carbon products.
• 🔗 BP's ten aims are detailed on their website, providing a comprehensive view of their strategy to support the transition to a low carbon future.

Q & A

What is BP's new ambition regarding net-zero emissions?

BP has set an ambition to become a Net Zero company by 2050 or sooner, aiming to help the world reach Net Zero.

What are the 10 aims that underpin BP's net-zero ambition?

The script does not detail all 10 aims, but it discusses aims one, two, and three, which include being Net Zero on an absolute basis across all operations, being Net Zero for carbon in the oil and gas produced, and cutting the carbon intensity of the products sold by 50% by 2050 or sooner.

How does BP define 'absolute basis' in relation to its operations?

BP defines 'absolute basis' as achieving Net Zero emissions across all its operations, including direct emissions (Scope 1) and indirect emissions (Scope 2), by 2050 or sooner.

What is the difference between Scope 1 and Scope 2 emissions in BP's context?

Scope 1 emissions refer to direct emissions from BP's assets, such as refineries and ships, while Scope 2 emissions are indirect emissions from the electricity used to power BP's operations.

Why did BP choose to focus its Scope 3 Net Zero aim on oil and gas production rather than on the products sold?

BP chose to focus on oil and gas production because most of its investment goes into this area, and it aims to shift towards non-oil and gas businesses over time. It believes that focusing on the point of production is the most straightforward and easiest to understand and account for.

How does BP plan to achieve Net Zero for the carbon in the oil and gas it produces?

BP plans to achieve Net Zero for the carbon in the oil and gas it produces by focusing on the point of production, where the oil and gas comes out of the ground, and ensuring that each molecule of carbon is made Net Zero once between extraction and combustion.

What is the significance of reducing carbon intensity by 50% in BP's aim three?

Reducing carbon intensity by 50% means reducing the amount of carbon emitted per unit of energy consumed. This includes not only BP's own products but also those produced by others, aiming to encourage the sale of more low or zero carbon products.

What are some of the potential levers BP can use to reduce emissions to Net Zero?

Some potential levers include offsetting, carbon capture, use and storage, and a transformation of the entire energy system, including changes in how energy is used.

Why is it not realistic to rely solely on offsetting to achieve Net Zero?

It is not realistic to rely solely on offsetting because there must be a transformation of the whole energy system, including all the ways energy is used. Without this transformation, the world would be massively short of energy, leaving vehicles and homes without usable fuel or heat.

What role does consumer behavior play in BP's aim to cut carbon intensity?

Consumer behavior plays a crucial role as it requires consumers to change their behaviors and choose low or zero carbon products. This, in turn, needs to be supported by government policies that make those products widely available, affordable, and attractive to customers.

Where can one find more details about BP's ten aims supporting its Net Zero ambition?

More details about all ten aims can be found on BP's website at BP.com/re-imagined.