Supermajor BP PLC said March 26 that it will earmark $100 million over the next three years for projects that will generate greenhouse gas emissions reductions from its upstream oil and gas operations.
The Upstream Carbon Fund will be in addition to the $500 million that London-based BP invests annually in low carbon activities, including investments in alternative energy.
In April 2018, BP introduced the "reduce-improve-create" framework, which includes setting short-term targets for emissions from its operations, including achieving 3.5 million tonnes of sustainable emissions reductions from 2016 to 2025 and a methane intensity of 0.2%.
Despite oil and gas production growth of 3%, BP said its direct emissions fell by 1.7 million tonnes of CO2 equivalent in the last year. By the end of 2018, BP had generated 2.5 million tonnes of emissions reductions since 2016 and its methane intensity was at its target of 0.2%.
In January, BP said its emissions reductions targets have now been linked to the remuneration of 36,000 of the company's employees. Then in February BP announced that it would support a resolution from a group of institutional investors asking the major to broaden the way it reports its emissions and climate goals. The proposal was submitted by Climate Action 100+ and will be voted on by BP's shareholders at the company's annual general meeting in May.
In mid-March, BP and the Environmental Defense Fund said they have teamed to cut methane emissions from the major's supply chain. The collaboration will focus on developing technology advancements such as drone-based methane monitoring; integrating methane management with digital technologies, including artificial intelligence; and looking to expand the industry's emissions monitoring and reduction efforts.