Jeffrey S. Morgheim¹

(1) BP, Houston, TX

ABSTRACT: BP's Emissions Trading System: Harnessing Market Forces to Meet Environmental Goals, Cost-Effectively

In September 1998, Sir John Browne pledged that BP would reduce its emissions of greenhouse gases by 10% from 1990 levels by the year 2010. He also pledged to launch a company-wide emissions trading system to facilitate meeting that target in the most cost effective way possible. Since then, BP has become a recognized leader in the area of greenhouse gas emissions trading. Following a pilot trading system that ran from 1998 to the end of 1999, the company launched its full trading system in January 2000. Over the course of the first year of trading, over 1.5 M tons of emissions were traded, involving all business streams. Although no formal trading systems have been set up, action is occurring at regional, national and international levels that will make greenhouse gas emissions an important consideration in the management of business growth. BP's early actions in this area are positioning the company for a "carbon constrained" world. The paper and presentation will cover how the BP trading system works, performance, trading versus other policy options. The paper will also discuss external developments in the area of greenhouse gas emissions and what they may mean for a global company such as BP.

AAPG Search and Discovery Article #90906©2001 AAPG Annual Convention, Denver, Colorado