“It’s a slippery slope if you don’t get that right,” he continued. Responding to discussion on how carbon offsets could play a role in ensuring a just transition, Mr Swartz also opined that a VCM is an “odd situation”, whereby European and North American companies design carbon reduction activities with partners almost exclusively outside those locations. “We would adopt that definition if it already existed and we would follow it our problem is that it doesn’t exist and I think that’s what we need to work on.” However, the lack of a clear definition of what “high quality” carbon offset removal constitutes has held back the market in recent years, Mr Swartz said. With regards to offsets, the standard suggests oil and gas companies should “minimise their use” and focus “only on high quality offsets”, as well as disclosing the costs in $/tonne of CO2 and the type of offsets used. The guidance sets out parameters that help investors assess the quality and consistency of oil and gas company plans around reaching net zero. Mr Swartz also said BP has volunteered to become one of the first major listed companies to be part of a new Net Zero Standard for Oil and Gas prepared by the Institutional Investors Group on Climate Change (IIGCC) – a member body focused on aligning investments with tackling climate change.
Mr Swartz added: “We do think that we can help the world get to net zero, and there are going to be greater demand for offsets and so we want to be able to provide those as a solution to our customers.”īP’s current scheme, Target Neutral, purchases carbon credits from a portfolio of global projects which are used to offset customer emissions. However, the potential of a VCM clearly holds other opportunities for the supermajor’s overall offering. He said that the company would prioritise reducing emissions in its own value chain first, but that “we don’t plan on using offsets to get to our 2030 aims.” Under its targets, BP would also reduce operational emissions by 30-35% and reduce the carbon intensity of products it sells by more than 15% over the same period. Mr Swartz said that BP, which posted its third quarter results this week, recognised that a decarbonising world would want less oil and gas, pointing to the company’s 2020 pledge to lower production by 40% by 2030. Often, offset projects can generate ‘carbon credits’ – certifiable proof of the carbon impact of the projects. building a wind farm instead of a fossil-fuel energy plant. by afforestation or by technologies such as direct air carbon capture (DACC) and carbon avoidance, which prevents the release of carbon e.g. “The world is changing and the requirements for disclosures are increasing, which I think is a good thing, and I think as a company we are increasingly aware and willing to disclose more in terms of what we’re going to do when it comes to carbon offsetting,” Mr Swartz said.Ĭarbon offsets are split broadly into two categories: carbon removals, which can remove or sequester active carbon from the atmosphere e.g. Speaking at a COP26 fringe event, BP climate director Jeff Swartz discussed the role of carbon offsetting in the energy major’s net zero plans.ĭuring a panel session hosted by the International Emissions Trading Association (IETA), Mr Swartz gave an outlook on the voluntary carbon market (VCM) and its role in BP’s emissions reduction plans.ĭiscussions focused on the use of carbon offsets and corporate disclosure as companies and investors look to make good on net zero targets. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Video Camera An icon of a video camera shape. Previous An icon of an arrow pointing to the left. Notice An explanation mark centred inside a circle. Next An icon of an arrow pointing to the right. Hamburger Menu Icon An icon used to represent a collapsed menu. Search Icon A magnifying glass icon that is used to represent the function of searching. Magnifying Glass An icon of a magnifying glass. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble.
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