BP starts $100m Upstream Carbon Fund for emission reduction projects

BP has set up a $100m Upstream Carbon Fund for projects that will reduce greenhouse gas (GHG) emissions in its upstream oil and gas operations.

With the new Upstream Carbon Fund, which will be made available over the next three years, BP can support its work in generating sustainable GHG emissions reductions in its operations.

The new fund will be in addition to the $500m that BP invests in low carbon activities every year and is a further step in the company’s work to meet its targets and advance the energy transition.

BP Upstream chief executive Bernard Looney said: “A year ago, we challenged everyone at BP to reduce emissions in our operations and they have responded overwhelmingly.

“This $100m investment is designed to build on that momentum. It will fund ideas both big and small because everything counts in our transition to a lower carbon future and everyone at BP has a role to play.”

BP established clear near-term and specific targets last April to minimise its emissions. The company’s total direct emissions have since declined by 1.7 million tonnes CO₂ equivalent.

The targets included achieving 3.5 million tonnes of sustainable GHG emissions reductions across the group from 2016 to 2025 and target a methane intensity of 0.2%.

By the end of last year, BP had generated 2.5 million tonnes of sustainable GHG emissions reductions throughout its businesses since 2016. During that period, its methane intensity was 0.2% in line with the target.

The company formed a partnership with the Environmental Defense Fund (EDF) this month to develop technologies and practices for minimising methane gas emissions from the global oil and gas supply chain.