Due to the Ukraine war and the encouragement of green investment by Joe Biden’s efforts, global carbon emissions have declined more than previously anticipated, says BP.
According to the oil and gas company, carbon emissions have dropped dramatically compared to what was predicted a year ago due to renewed efforts by countries pursuing greater energy security by encouraging domestic, renewable energy supplies.
As per BP’s annual energy outlook report, the estimated global emissions in 2030 would be reduced by 3.7%, and 2050 by 9.3%. The demand for oil and gas would be 5% and 6% less, respectively, by 2035. The company also stated that demand for renewable projects would increase by 5% at the current rates.
After the invasion of Ukraine, countries have drastically reduced their gas supplies from Russia.
As a result, other fossil fuels like coal are being ramped up to reduce the gap for the time being. The need for low-cost, long-term replacements has increased, but so requires renewable energy projects.
A new wave of investment in renewables has been encouraged, suggesting that the UK and EU follow the same suit after Biden’s Inflation Reduction Act came into force in August.
As per BP’s latest forecast, global emissions will reach their peak by 2020, and then decline by 30% on 2019 levels by roughly 2050. However, that would fall short of the goal of reaching net zero by 2050 which is required to prevent highly harmful global warming. This objective has been formally endorsed by the UK.
Spencer Dale, the BP chief economist, put it this way in the report: “From an energy perspective, the disruptions to Russian energy supplies and the resulting global energy shortages seem likely to have a material and lasting impact on the energy system.”
“Global energy policies and discussions in recent years have been focused on the importance of decarbonizing the energy system and the transition to net zero. The events of the past year have served as a reminder to us all that this transition also needs to take account of the security and affordability of energy.”
After becoming the CEO of BP, Bernard Looney aims to make the company net zero by “2050 or sooner.”
Looney has been pursuing efforts to revamp BP’s image and focus more on renewables. Despite this, the government received harsh criticism for spending twice as much on oil and gas projects this year as it did on renewable investments.
As per the outlook report, BP is expected to produce 100 million barrels a day for the next 10 years before dropping to 75 million barrels a day by 2050. 20 million barrels a day need to be reduced if the global net zero goals are to be achieved.
After the Russian invasion of Ukraine, BP’s profits increased significantly, further inflating already high gas prices and prompting ministers to impose a windfall tax on North Sea oil and gas firms. Next week, the company’s fourth quarter should show underlying earnings of almost $5 billion.
- Published By Team Timeswire