Energy majors call for carbon pricing

1st June 2015


Leaders of six major energy companies are calling for governments around the world to agree a price for carbon at the Paris climate talks at the end of the year.

In a letter to UNFCCC executive secretary Christiana Figueres, BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total say their operations are already exposed to a carbon price through participation in existing carbon markets and their use of a shadow price of carbon when taking investment decisions.

“Yet, whatever we do to implement carbon pricing ourselves will not be sufficient or commercially sustainable unless national governments introduce carbon pricing even-handedly and eventually enable global linkage between national systems,” the letter states.

“Some economies have not yet taken this step, and this could create uncertainty about investment and disparities in the impact of policy on business,” it continues.

The energy companies say they will work with the UN and governments to develop how a global system of carbon pricing could work. They also pledge to copy the letter to key contacts among investors, governments, civil society and staff.

“Pricing carbon obviously adds a cost to our production and our products, but carbon pricing policy frameworks will contribute to providing our businesses and their many stakeholders with a clear roadmap for future investment, a level playing field for all energy sources across geographies and a clear role in securing a more sustainable future,” the letter concludes.

The energy companies’ support for carbon pricing follows a similar call from over 6.5 million companies from more than 25 global business networks at a conference in Paris last week.

It comes as further climate negotiations open in Bonn, Germany. Negotiators will be working on editing the draft 84-page text containing all the options for an agreement in the French capital in December.

Figueres said: “With some 200 days to the UN climate convention conference in Paris, the growing momentum for change and for action is rapidly gaining ground across countries, companies, cities and citizens.

“News of yet another group of stakeholders committing to long-term emission reduction targets or ambitious investments in renewable energies is emerging almost daily – building confidence and a sense of ‘can do’ among nations as we enter the final six months of 2015,” she said.

Further national emissions reduction pledges, or intended nationally determined contributions (INDCs), are expected to be published during the Bonn talks.

INDCs have so far been published by the EU as well as the US, China, Canada and Mexico. But these are unlikely to be ambitious enough to keep global temperature rises under two degrees centigrade, according to the Grantham Research Institute for Climate Change in a paper published in May.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

EU and UK citizens fear net-zero delivery deficit

Support for net zero remains high across the UK and the EU, but the majority of citizens don't believe that major emitters and governments will reach their climate targets in time.

16th May 2024

Read more

There is strong support for renewable energy as a source of economic growth among UK voters, particularly among those intending to switch their support for a political party.

16th May 2024

Read more

Despite cost-of-living concerns, four-fifths of shoppers are willing to pay more for sustainably produced or sourced goods, a global survey has found.

16th May 2024

Read more

One in five UK food businesses are not prepared for EU Deforestation Regulation (EUDR) coming into force in December, a new survey has uncovered.

16th May 2024

Read more

Each person in the UK throws a shocking 35 items of unwanted clothes and textiles into general waste every year on average, according to a new report from WRAP.

2nd May 2024

Read more

Taxing the extraction of fossil fuels in the world’s most advanced economies could raise $720bn (£575bn) by 2030 to support vulnerable countries facing climate damages, analysis has found.

2nd May 2024

Read more

The largest-ever research initiative of its kind has been launched this week to establish a benchmark for the private sector’s contribution to the UK’s 2050 net-zero target.

2nd May 2024

Read more

Weather-related damage to homes and businesses saw insurance claims hit a record high in the UK last year following a succession of storms.

18th April 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close