BP stresses need for price on carbon

BP CEO Bob Dudley drew attention to the need to shift toward incorporating more climate change policies into the global energy outlook on Tuesday.

Dudley called for a price on carbon in the company’s release of its “Energy Outlook 2035” report to help get industrial sources on board in the fight against climate change.

{mosads}To stave off the 2 degree Celsius increase, and cut carbon emissions further, BP said, it will require “additional significant steps by policy makers beyond the steps already assumed.”

Based on current policies and regulations, BP’s outlook released on Tuesday states emissions should rise 1 percent year to 2035 or by 25 percent over the period.

One solution will not be the final answer, Dudley stressed.

“This underpins the importance of policymakers taking steps that lead to a meaningful global price for carbon,” he said. “A global carbon price would help to unleash market forces and provide the right incentives for everyone to play their part.”

Dudley added that businesses need to be “responsive to a lower carbon world. 

While some lawmakers have floated a carbon tax for energy companies, Republicans and a number of oil interests object to the idea, arguing that it is unnecessary.

Still, BP said it expects energy demand to increase roughly 40 percent by 2035, with fossil fuels accounting for over half of demand, which appears to clash with government climate policies. 

Notably, gas is slated to grow the most over the next two decades, while coal is expected to be the slowest.