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BP America Steps Up to California Greenhouse Gas Act

4 September 2006

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

Resources:

  • BP Sustainability Report (Climate Change section)

September 4, 2006 in Climate Change, Emissions, Power Generation | Permalink | Comments (29) | TrackBack (0)

Comments

Re: Wegman report. How many of you have read it? Do you know the scope of it, what Wegman et al were charged to do and not do? Do you know what they said about climate change? Also, Mann et al '98 was one of the first attempts at a large scale reconstruction like that, and not only were they bound to get some things wrong at first but that over time the methodology would improve. That's just how science works -- same for computers, cars, any technology that's not well established. Yet despite some methodological problems in the early work, the essence of it still stands, at least according to the National Academy of Sciences review, the later work of Mann and and practically everyone else in the field, and the >opinion< of Wegman et al.

Re: cost to California. Perhaps this is their way of beginning to account for those market externalities so conveniently overlooked. I do remember that when CARB enacted draconian emission restrictions, there was an awful lot of caterwauling about how business would abandon CA and it would become a 3rd world state. It remains the 6th largest economy in the world.

Posted by: dt | September 05, 2006 at 11:47 AM

Neil:
You wouldn’t believe how many people in Russia die or become blind every year by mistaking methanol for ethanol (it is usually non-denaturated technical alcohol). BTW, some decades ago Russian government tried to produce vodka from oil and NG stock (talk about “addiction to oil”). For some undiscovered reasons, it had severe health effects, and vodka production returned to original “organic” beverage. What an irony that now we do it vice versa: fueling our cars by grain alcohol instead of oil.

Posted by: Andrey | September 05, 2006 at 05:35 PM

Most of our industries use a great amount of energy. That is how it may effect the economy...by forcing them to use less energy and spend on more efficient methods bringing the costs of such goods as concrete, steel, and ready cut wood quite a bit higher. This then requires more tax money to support the higher infrastructure costs and at the same time basic construction materials for your housing rise in cost meaning the average joe finds housing less affordable than it is now, gets hit harder by taxes supporting more expensive infrastructure and then faces higher costs at any retail outlet due to the retail outlets having to recoup costs imposed on them. At the same time wages won't be increased as the higher cost of goods goes towards paying for the more expensive raw materials. Now, if you are working in the small segment addressing efficiency (like Danfoss) you may have a nice increase in your paycheck...but that will be all of what? 0.0001% of the population?

Posted by: Patrick | September 06, 2006 at 01:52 PM

The main things I think this legislation is going to do are 1) create a new market for this oxymoron called clean coal, 2) make dirty coal cheaper for states that don't have simiilar laws, 3) hasten global warming, 4) come closer to asphyxiating the population of the interior west to pipe power to the coasts, especially from the National Sacrifice Area and the Diné (Navajo) Reservation, and, 5) hasten global warming and thus make life more perilous in the hurricane zones.

On the Navajo Reservation, Sithe Global Industries now plans to build one of the biggest, if not the biggest coal-fired plants ever built--like a mile long at least. Who cares if the emissions are 30% of those of dirty coal if you still have to make a mess, scar the earth, make people sick, and waste a lot of water mining coal? And, if you build five or ten more clean coal plants, increasing coal emissions by 150% to 300%?

Posted by: Ann Garrison | September 17, 2006 at 10:03 PM

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