BP to Leave Three Trade Associations

Credit: BP
Credit: BP

Published Feb 26, 2020 7:46 PM by The Maritime Executive

BP has announced that it will leave three U.S.-based organizations – American Fuel and Petrochemical Manufacturers, the Western States Petroleum Association and the Western Energy Alliance. 

The departures follow an in-depth review of their climate-related policies and activities.

Earlier this month BP introduced its ambition to become a net zero company by 2050 or sooner and to help the world get to net zero. Part of the ambition includes to set new expectations for relationships with trade associations.

BP CEO Bernard Looney said: “Trade associations have long demonstrated how we can make progress through collaboration, particularly in areas such as safety, standards and training. This approach should also be brought to bear on the defining challenge that faces us all – supporting the rapid transition to a low carbon future. By working together, we can achieve so much more. 

“BP will pursue opportunities to work with organizations 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.”

BP selected 30 associations – concentrated in North America, Europe and Australia – for review. For three organizations, BP found misalignments that could not be reconciled. Due to material differences regarding policy positions on carbon pricing BP will leave American Fuel and Petrochemical Manufacturers and the Western States Petroleum Association. Due to material differences around the federal regulation of methane, as well as asset divestments in the states in which the organization is active, it will not renew its membership with the Western Energy Alliance. 

BP has identified a further five organizations with which it is only partially aligned on climate. BP has communicated these differences to these associations.

BP plans to undertake another review in around two years’ time.

The full report is available here.

Associations not aligned with BP’s position:

American Fuel and Petrochemical Manufacturers (AFPM)
Western Energy Alliance (WEA)
Western States Petroleum Association (WSPA)

Associations partially aligned with BP’s position: 

American Petroleum Institute (API)
Australian Institute of Petroleum (AIP) 
Canadian Association of Petroleum Producers (CAPP)
National Association of Manufacturers (NAM) 
US Chamber of Commerce

Associations aligned with BP’s position: 

Australian Industry Greenhouse Network (AIGN)
Australian Petroleum Production & Exploration Association (APPEA)
Bundesverband der Deutschen Industrie (BDI)
Business Council of Australia (BCA)
Confederation of British Industry (CBI)
European Chemical Industry Council (Cefic)
European Round Table for Industry (ERT)
International Air Transport Association (IATA)
International Association of Oil and Gas Producers (IOGP)
International Emissions Trading Association (IETA)
International Gas Union (IGU)
Mineralölwirtschaftsverband (MWV)
Oil and Gas Climate Initiative (OGCI)
Oil & Gas UK (OGUK)
Spanish Association of Petroleum Products Operators (AOP)
Verband der Chemischen Industrie (VCI)
Vereniging Nederlandse Petroleum Industrie (VNPI)
World Business Council on Sustainable Development (WBCSD)