Carbon markets
The low carbon trading (LCT) team is bp’s face to the global carbon markets and is active across most major carbon trading programmes globally. This enables us to understand and manage the regulations and incentives required to help deliver cost-effective decarbonization solutions for our own operations and for our customers. Through LCT, bp can support customer decarbonization solutions on a global scale.
Who we are
With over 20 years of carbon trading experience, we are active market participants across the wide spectrum of environmental products, including carbon credits, allowances and certificates and support the development of 3rd-party carbon credit projects. We work with our customers and teams across bp to find new decarbonization opportunities and low-carbon energy solutions in both regulated and voluntary carbon markets. Our purpose is to leverage carbon markets to incentivize emission avoidance, reductions and removals in a wide range of geographies and sectors.
We believe that well-designed carbon pricing provides cost-effective incentives for energy producers and consumers alike to play their part in reducing emissions. LCT plays a vital role in connecting bp and our customers to carbon pricing through our activity in many of the world's carbon markets, supporting the efficiency of regulatory trading programs in reducing emissions and enabling projects in other sectors through the purchase of carbon credits.
The LCT team also plays an important role in bp’s sustainability aim 18 – championing nature-based solutions – by working to support the scaling and integrity of nature-based carbon credit projects.
Over 20 years of experience in trading in evironmental products. |
Active in most major carbon trading programmes globally. | Investments in partnerships and joint ventures. |
| We provide solutions to many of the world's largest producers and consumers of energy. | A dynamic team made of a diverse pool of talents and backgrounds. | Active across environmental products (e.g. offsets, allowances, certificates) and supporting the development of 3rd party projects. |
Why bp for carbon credits?
Engaging with environmental product markets and reducing emissions can drive both commercial and Environmental Social & Governance (ESG).
bp LCT offers a dedicated and reliable platform.
- Experience: A dedicated, long-standing team with over 20 years of operation in environmental products markets. A team with a depth of knowledge across project development and customer solutions.
- Reliability: Strong project developer relationships, experienced across major project types, our dedicated ‘Centre of Excellence’ team provides deep technical expertise to screen, support and manage projects within our portfolio.
- Market development: Experience in tracking market developments and policy change.
- Diversity: Extensive portfolio of projects in four continents developed under internationally recognised standards and methodologies to help safeguard our investments across a wide spectrum of project types.
- Understanding: bp’s wide ranging activity leaves us well placed to understand requirements around tackling hard to abate sectors.
- Flexibility: With global scale and flexibility, we are able to offer a combination of expertise, financial structures and geographic scope.
Through meaningful partnerships with communities, public sector organizations, and project developers, we invest in projects verified against methodologies of internationally recognized independent standards and which are designed to provide climate, environmental and social benefits, which may help our customers meet their sustainability objectives.
The carbon credit projects the team source in the primary voluntary carbon market are verified against the methodologies of internationally recognized independent standards and are reviewed by our own internal technical team in trading & shipping who have extensive expertise in projects that include natural climate solutions, household energy efficiency devices and greenhouse gases.
As we transition from international oil company (IOC) to integrated energy company (IEC), bp is actively engaging with the carbon trading systems across the world.
Our portfolio
bp’s carbon offsets portfolio is made up of over 100 projects around the world.
Each project in bp’s portfolio has been verified by third-party firms accredited under the applicable project standard. Where bp purchases credits on a primary basis from projects, these are subject to due diligence by bp’s centre of excellence (COE). The COE may also provide ongoing project management support on behalf of bp during the term of the contract.
Example supply projects
Our approach to carbon credits
We undertake internal due diligence before we add a project to the bp portfolio to help safeguard our deployment of capital and to support integrity.
- We select projects with independent third-party verification and certification against internationally recognized standards.
- We advocate for robust standards and methodologies to help with the additionality of our investments
- We encourage the use of state of the art measurement technologies and estimation methods to improve accuracy.
- Our dedicated team ‘Centre of Excellence’ helps safeguard our deployment of capital and standards through a due diligence process to support integrity.
For more information on our products and services, please contact your bp account representative.
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