BG Joins World Bank Carbon Pricing Initiative
Energy company BG Group has joined the World Bank Carbon Pricing Leadership Coalition (CPLC), an initiative which brings together over 85 governments, corporate and civil society organisations to collaborate on carbon pricing systems and policies.
The group's entry to the CPLC coincides with the company's decision to also make public the internal carbon screening values it uses when reviewing investment decisions.
BG Group has been valuing carbon internally for a number of years, to plan for the cost of carbon emissions under existing carbon pricing regimes and the impact of future carbon pricing systems on its projects. Valuing carbon on projects has enabled the group to identify design options which improve energy efficiency and reduce emissions.
These carbon screening values are now available on the BG Group website.
Helge Lund, BG Group Chief Executive, said: “Carbon pricing will be a critical component in the world’s battle to tackle climate change. Putting a price on carbon will reflect its cost to society. It creates transparency among carbon producers and will encourage the development of more efficient carbon reduction technologies.
“BG Group has today joined the CPLC and made public the carbon screening values we use when evaluating new investment, to assist in developing, and expanding the evidence base for, effective carbon pricing systems.”
BG Group supports flexible government policies which place a meaningful price on carbon and encourage global cooperation. In May 2015 BG Group issued a joint letter with the CEOs of five other European oil majors to the United Nations Framework Convention on Climate Change (UNFCCC) and the Presidency of COP-21 conference advocating for carbon pricing.
Although carbon pricing will potentially add to future costs, BG Group believes stable, long-term, globally-linked carbon pricing will provide the most effective policy framework and is necessary to provide a clear roadmap for its future investments.
BG Group has also been named a Caring for Climate Carbon Pricing Champion by aligning with the Business Leadership Criteria on Carbon Pricing.
Joining the World Bank CPLC marks BG Group’s first effort to join leaders from other sectors of the economy to advocate the importance of carbon pricing.