BP America says that it will work with California Governor Arnold Schwarzenegger to develop workable, market-based strategies for implementation of climate change legislation to reduce greenhouse gas emissions throughout California. The California Assembly last week passed the California Global Warming Solutions Act of 2006, which Governor Schwarzenegger is expected to sign into law in the near future.
The act is intended to cap greenhouse gas emissions in the state, and reduce them to 1990 levels by 2020—an estimated 25% reduction. (Earlier post.)
After speaking with Governor Schwarzenegger, I believe that, through his leadership, a fully functioning market will become an integral part of the system to reduce greenhouse gas emissions. Having an emissions market will help California achieve the lowest cost solutions and spur innovation of new technologies supporting lower greenhouse gas emissions.—BP Group Chief Executive John Browne
BP is an advocate of emission cap-and-trading programs to achieve emissions reductions and is an active participant in the European Union emissions reduction market. In 1998, the BP set a target to cut emissions from operations to 10% below 1990 levels by 2010; the company managed to hit that target in 2001 through a combination of energy efficiency and by cutting flaring of unwanted gas.
In February, BP and Edison Mission Group (EMG), a subsidiary of Edison International, announced a new $1-billion hydrogen-fueled power plant in California that will generate electricity with minimal carbon dioxide emissions. (Earlier post.) The project is part of the portfolio of BP’s new low-carbon power generation business, BP Alternative Energy.
I believe this legislation can provide a framework for addressing climate change in a way that helps, not harms, California’s economy. Our engagement on this issue will continue as new climate change regulations are developed. We want this effort to be successful because what happens in California matters to the nation and to the world.—BP America Chairman and President Bob Malone
BP Sustainability Report (Climate Change section)