British company BP will cut oil and gas production by 40% and invest at least $1 billion in clean energy. This became known from the corporation’s plan, which they plan to implement by 2030.
The company said it plans to increase its low-carbon investment tenfold to $5 billion by 2030. This is how they plan to achieve zero emissions by 2050. BP shares after this announcement rose 8%.
“The coming decade is critical for the fight against climate change. In order to achieve the necessary changes in global energy systems, help and efforts from all will be required”.
from BP statement
The company expects that if the temperature rise on Earth is limited to 1.5°C, then the demand for fossil fuels will fall by 75%. If the warming is less than 1.5°C, then the demand will be reduced by 50%. BP predicts that oil and gas production will decline by at least a million barrels per day by 2030, down 40% from 2019. However, the bulk of the company’s annual capital expenditure over the next five years will continue to be from oil and gas.
BP also said it will invest $25 billion in digital exploration technologies and will mainly use already known oil reserves with existing infrastructure. In this way, they can save money that they will invest in the two main low-carbon areas in the future.
The company is also interested in hydrogen production and transportation, carbon capture, biofuels, and low carbon solutions for industrial companies. By 2030, investments in green businesses will account for about a third of BP’s costs.