London based oil and gas company- BP plc is to cut its ties with three US-based trade associations. Reports allege the recent development has been due to the disagreements over climate-related policies and activities.
The latest situation has also been the result of an ambitious target set by UK oil corporation’s new chief executive, Bernard Looney to reduce the carbon footprint to net zero by 2050. The target can be achieved by curbing greenhouse gas emissions every year than the amount generated by the whole of UK.
BP plc has announced that it will withdraw its deal with the American Fuel and Petrochemical Manufacturers (AFPM), taking example from Shell and France’s Total, which left the lobby group last April. Furthermore, it will also exit from the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA).
BP has reportedly conducted a review of climate-crisis related policies and activities in comparison to those of 30 trade associations. The findings reveal material differences in views on carbon pricing in relation to the positions adopted by AFPM and WSPA. In addition, it was alleged that BP will not renew its WEA membership owning to significant differences based on federal regulation of methane.
BP has announced five organizations for its partial associations on climate crisis, these include the American Petroleum Institute, Australian Institute of Petroleum, Canadian Association of Petroleum Producers, National Association of Manufacturers and the US Chamber of Commerce.
Looney commented in the wake of the situation, “BP will pursue opportunities to work with organisations who share our ambitious and progressive approach to the energy transition. And when differences arise we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.
“My hope is that in the coming years we can add climate to the long list of areas where, as an industry, we work together for a greater good.”
On the other hand, The AFPM president and chief executive, Chet Thompson, said: “We are certainly disappointed with BP’s decision. We do not believe that BP’s trade association report accurately reflects AFPM’s position and commitment to finding solutions that address climate change.
“As an active member of our executive committee, BP knows full well that AFPM recognises that climate change is real and that we are committed to engaging on and developing policies that enable our members to provide the fuels and petrochemicals that humanity needs to thrive in a sustainable way.”