BP to leave three US trade associations due to misalignment of climate policies

Article by Amanda Doyle

BP HAS announced that it will leave the American Fuel and Petrochemical Manufacturers (AFPM), the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA), as their climate policies were not aligned with BP’s and could not be reconciled.

Earlier this month, BP announced that it aims to be net zero by 2050 and that part of these plans would include setting new expectations for its relationships with trade organisations, and leaving organisations that did not align with BP’s climate change views.

BP has announced yesterday that it conducted a review over the past six months of 30 trade associations to determine if they were aligned, partially aligned, or not aligned with BP’s positions. It decided to leave the AFPM and WSPA over differences on policy positions regarding carbon pricing, and is leaving the WEA due to differences around methane regulations.

BP will continue to be a member of the American Petroleum Institute (API), which actively campaigns against climate action. However, it said that the API is one of five organisations which are only partially aligned on climate policy and that it has communicated these differences to the organisations. All associations in BP’s review have been informed of BP’s expectations regarding climate positions and transparency.

It has said that this is an ongoing process and that another review will take place in around two years.

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 organisations 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.”

Chet Thompson, President of AFPM, said: “We are certainly disappointed with BP’s decision. We do not believe that BP’s trade association report accurately reflects AFPM’s position and commitment to finding solutions that address climate change.”

“We remain committed to delivering value for our members and their employees, the communities in which they operate, the environment, and the millions of people who rely on fuel and petrochemical products each day. We believe that BP’s decision to leave industry organisations like ours hurts their cause, not helps it."

In an interview with The Financial Times, Mike Sommers, President of the API, said: “I'm confident that we're going to be able to continue to represent this industry, including Total, including BP, including Shell, including Equinor, for many, many years to come.”

Article by Amanda Doyle

Staff Reporter, The Chemical Engineer

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