Abby L. Harvey
GHG Monitor
6/5/2015
Executives from six major oil and gas companies voiced their support for carbon pricing late last week in a letter to top officials with the U.N. Framework Convention on Climate Change. The May 29 letter, which is signed by CEOs from BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total, acknowledges the need to reduce carbon emissions to meet the Intergovernmental Panel on Climate Change’s goal of limiting global temperature rise to 2?c. The companies have already taken steps to reduce emissions, according to the letter, but the certainty that would be provided by a carbon price would aid in further efforts. “For us to do more, we need governments across the world to provide us with clear, stable, long-term, ambitious policy frameworks. This would reduce uncertainty and help stimulate investments in the right low carbon technologies and the right resources at the right pace. We believe that a price on carbon should be a key element of these frameworks,” the companies wrote.
According to the letter, placing a price on carbon would support investment into innovative low-carbon technologies and would help to end investment in high-carbon infrastructure with long lifespans. “If governments act to price carbon, this discourages high carbon options and encourages the most efficient ways of reducing emissions widely, including reduced demand for the most carbon intensive fossil fuels, greater energy efficiency, the use of natural gas in place of coal, increased investment in carbon capture and storage, renewable energy, smart buildings and grids, off-grid access to energy, cleaner cars and new mobility business models and behaviors,” the companies wrote.
The companies asked the UNFCCC to consider the adoption of a carbon price in negotiations at the 21st Conference of the Parties, which will be held in Paris late this year, as negotiators work to develop a post-Kyoto climate protocol. “We call on governments, including at the UNFCCC negotiations in Paris and beyond – to: introduce carbon pricing systems where they do not yet exist at the national or regional levels [and] create an international framework that could eventually connect national systems,” the companies wrote. “To support progress towards these outcomes, our companies would like to open direct dialogue with the UN and willing governments.”
Environmentalists Applaud Action
Environmental groups applauded the companies following the letter. “I am pleased to see six of the world’s major oil and gas companies not only support a price on climate pollution, but pledge to be part of the solution by working actively with governments and civil society to deliver results,” Environmental Defense Fund President Fred Krupp said in a statement. “EDF is pleased to see this public statement of support for a price on carbon. Let’s get on with the urgent business at hand: turning the corner toward climate stability and a new era of clean, low-carbon prosperity.”
