CAPCO GHG Position

By: 蕭勝賢 (S.S.Hsiao)

Date: Sep. 25 2003

CAPCO GHG Position 2

Content

CAPCO GHG Background

Done, Learning, Doing & Expecting

Climate Change- BP Policy and Plans (Jun 2003)

BP Emission Trading

CAPCO GHG Position 3

Why CAPCO is Doing This ?

Shareholders 1999 before:50% Amoco, 25% CPC & 25% CIHC Since 1999 :50% BP, 25% CPC & 25% CIHC May 2003: 59.02% BP, 33.3% CPC & ???

Green Enterprise BP To sustain our position as one of the world’s leading energy pr

oducers and suppliers. To minimise damage to the natural environment resulting from

our activities. To be at the forefront of the global transition to a lower carbon

energy economy.

CAPCO GHG Position 4

BP Reporting Guideline

E n v i r o n m e n t a l P e r f o r m a n c e

G r o u p R e p o r t in g G u id e l in e s

http://www.bp.com/

CAPCO GHG Position 5

Getting GHG Right

GHG Reporting Completeness Accuracy Consistency Transparency

GHG Improvement Energy efficiency Material burning

CAPCO GHG Position 6

What CAPCO Had Done GHG team setup @ 1999 Requirements review & boundary setting Emission data collection, calculation,

checking & reporting 1990, 1998 ~ 2003 Q2 GHG reporting External auditing @1999 (DNV, KPMG…) 1% GHG reduction @1999 & 2000 Develop GHG reduction plans Buying emission quota for No.6

CAPCO GHG Position 7

What CAPCO Is Doing

Quarterly emission calculation & reporting

Movement report Energy efficiency improvement

vs. GHG emission reduction Self auditing programs BP information understanding

CAPCO GHG Position 8

What CAPCO Had Learned

Improve GHG data consistency BP is more serious than we

though 100 + 1 to “DO” something Job has to be done We are behind the trend

CAPCO GHG Position 9

What CAPCO Is Expecting

Clarify the government policy Emission factor standard Do it early if it really has to be

done Continue energy as well as GHG

performance improvement

CAPCO GHG Position 10

Climate ChangeBP Policy and Plans (Jun 2003)

Coping with Climate Change What BP has achieved so far New challenges & meeting the

challenges Energy Efficiency and Responsible

operations CO2 Capture & Storage Lower carbon products and portfolio Emissions Markets - Expanding Rapidly Working in partnership to develop solutions

CAPCO GHG Position 11

Climate Change Position Papers -(Jun 2003)

BP’s Overall Position on Climate Change Addressing the Climate Impact from our own

Operations Carbon Capture & Storage Biologic Sequestration Understanding the Carbon Impacts and Benefits

of BP Products Emissions Trading Clean Development Mechanism Lower Carbon Energy

CAPCO GHG Position 12

Climate Change Position Papers -(Jun 2003)

What the issues are? What BP Wants to Achieve BP’s current position What We Plan To Do and Why

CAPCO GHG Position 13

BP Emission Trading- Backgrounds

Pilot system in 1999 and operated it across BP in 2000 and 2001.

Met at the end of 2001 by managing our emissions to 10% below the 1990 baseline.

Decided to suspend internal trading system at beginning of 2002,

In April 2002, joined the UK government-sponsored emissions trading scheme

CAPCO GHG Position 14

BP Emission Trading- What it is

Greenhouse gases are particularly appropriate for trading. Unlike other pollutants where the local impact is most important, the impact of climate change is felt globally and it is global concentrations of greenhouse gas that have to be reduced.

Two main types of emissions trading Allowance trading Credit trading

CAPCO GHG Position 15

BP Emission Trading- What it is