B P Thinking Cap & Trade:CLIMATE: Drive for emissions treaty shouldn't preclude regional markets -- BP chief (03/04/2008)
Ben Geman, E&ENews PM reporter
BP's chief executive urged policymakers today to avoid letting efforts to craft a global pact for curbing greenhouse gases damage the emergence of regional emissions markets.
"A global trading system should, of course, be our ultimate objective," Tony Hayward said at the Washington International Renewable Energy Conference. "But just because that is not achievable immediately, I don't believe we should be deterred from starting on a regional basis now."
Hayward said he backed a worldwide cap-and-trade system but noted that globalized financial markets historically start at the national level then expand.
His comments come as the European Union has already established a greenhouse-gas market that launched trading in 2005, and groups of U.S. states are forming regional trading blocs.
"The world should, of course, aim towards a global settlement to establish a strong post-Kyoto framework to cover the period beyond 2012," Hayward said. "But that must not preclude individual, bilateral and regional action. In fact these are normally prerequisites to effective international agreements."
BP plans to invest $1.5 billion in its alternative energy business this year, twice what it invested last year. In addition to a carbon price, the company argues that incentives and stable markets are needed to drive increased development of renewable energy.