BP has introduced a new strategy to reshape its business from being an international oil company to an integrated energy company focused on delivering solutions for customers. To this end, it has developed a strategy to reduce its carbon emissions.
Within the next 10 years, BP aims to increase its annual low carbon investment by 10-fold to around USD 5 billion a year. This will be done by building an integrated portfolio of low carbon technologies like renewable energy, hydrogen and carbon capture and storage. By 2030, it aims to develop around 50 GW of net renewable generating capacity which will be a 20-fold increase from 2019. Over the same period, BP’s oil and gas production is expected to reduce by at least one million barrels of oil equivalent a day (around 40 per cent) from 2019 level. The company’s remaining hydrocarbon portfolio is expected to be more cost and carbon resilient. By 2030, BP also aims to lower emissions from its operations, and associated upstream oil and gas production by 30-35 per cent and 35-40 per cent, respectively.
It has also set up a new financial framework to support a fundamental shift in how it allocates capital towards low carbon and other energy transition activities.