British Petroleum Announces Plan to Measure And Report Greenhouse Gas Emissions; To Set Targets; And to Practice Emissions Trading

(30 September, 1997 — Berlin) The Chief Executive Officer of British Petroleum (BP), John Browne, today announced that the multinational oil giant will take a leadership role in measuring and seeking to limit emissions of so-called “greenhouse gases” that contribute to climate change. In a major address in Berlin, Germany, Mr. Browne announced a step-by-step process under which BP will begin by measuring and reporting greenhouse gas (GHG) emissions from its facilities around the world; then develop a pilot program at 10 business units under which emissions reductions can be traded between facilities to meet their targets in the most efficient manner possible; and then to set targets for GHG emissions control.

The Environmental Defense Fund (EDF) today applauded the move as a model of international corporate leadership in confronting the problem of global climate change. Mr. Browne announced in his speech today that EDF, a non-profit environmental organization based in New York which has pioneered the development of policies which use market-based mechanisms to help protect the environment, will work with BP to develop the company’s pilot internal emissions trading program.

“BP has made a major statement today with its words and with its actions ? that the problem of climate change can be addressed,” said Fred Krupp, executive director of EDF. “BP is demonstrating the truest form of leadership ? because Mr. Browne’s plan of action makes it clear that other emitters of greenhouse gases can and should measure and control them; and implicitly makes it clear to governments negotiating a treaty on climate change that this problem can be addressed, and addressed in efficient ways. BP is showing the world the way ? and the company should be congratulated.”

“For EDF, BP’s leadership presents a unique opportunity to help develop concrete solutions to a difficult problem. Our focus has always been on solutions ? and we accept the challenge and look forward to working with BP on this hugely important project. They are a thoughtful and creative partner,” said Krupp.

In May, Browne delivered a speech in which he acknowledged that the threat of global climate change caused by the emissions of GHG resulting from human activities such as the burning of coal and oil was serious enough to merit public attention and action. At that time, BP and EDF also announced their intent to form a Joint Working Group to focus on the use of emissions trading to reduce GHG emissions. The process outlined in Browne’s speech today comes out of the initial efforts of the Joint Working Group.

Daniel J Dudek, EDF senior economist, who is leading the EDF team participating in the Joint Working Group, said, “BP is giving fresh meaning to the idea of enlightened self-interest. The company itself is bound to be the biggest beneficiary of its ‘learning by doing’ approach which doubtless will allow it to master GHG emissions control and trading ahead of much of the rest of the global business community. At the same time, both the environment and policy-makers will benefit, too, from the emissions reductions achieved by BP, from the learning and experience generated and shared by BP and from the company’s successful honing of the emissions trading tool, which is so critical to efforts to control pollution in a cost-effective way. BP will be getting a jump on the world’s efforts to confront GHG emissions, but the world will be benefiting, too.”

EDF senior attorney, Joseph Goffman, also a member of the Joint Working Group, said, “BP’s commitment to these three key steps — measuring and reporting GHG emissions; setting targets; and using emissions trading — is particularly constructive. International negotiators will be meeting this December in Kyoto, Japan to create a protocol on GHG emissions. If such a protocol is to work, it must incorporate exactly the elements on which BP is focusing ? setting targets, measuring and reporting emissions, and using emissions trading. BP’s commitment today throws down a clear challenge to the negotiators and the governments they represent to make sure that they craft an agreement that measures up to the standard that BP, a major oil company, has set through its example here today.”

Under the agreement that BP and EDF entered into in May, each organization will pay its own expenses, continue to pursue its business and advocacy activities fully and independently and as it sees fit, and retain the right to withdraw from the agreement at any time.