British energy company BG Group has joined the World Bank Carbon Pricing Leadership Coalition (CPLC). The CPLC is an initiative which brings together over 85 governments, corporate and civil society organisations to collaborate on carbon pricing systems and policies.
The company says its entry to the CPLC coincides with its decision to also make public the internal carbon screening values it uses when reviewing investment decisions.
BG Group says it has been valuing carbon internally for a number of years, to plan for the cost of carbon emissions under existing carbon pricing regimes, and the impact of future carbon pricing systems, on its projects. According to BG, valuing carbon on projects has enabled the Group to identify design options which improve energy efficiency and reduce emissions.
Helge Lund, BG Group Chief Executive, said: “Carbon pricing will be a critical component in the world’s battle to tackle climate change. Putting a price on carbon will reflect its cost to society. It creates transparency among carbon producers, and will encourage the development of more efficient carbon reduction technologies. BG Group has today joined the CPLC and made public the carbon screening values we use when evaluating new investment, to assist in developing, and expanding the evidence base for, effective carbon pricing systems.”
BG Group says it supports flexible government policies which place a meaningful price on carbon and encourage global cooperation. In May 2015 BG Group issued a joint letter with the CEOs of five other European oil majors to the United Nations Framework Convention on Climate Change (UNFCCC) and the Presidency of COP-21 conference advocating for carbon pricing.
Although carbon pricing will potentially add to future costs, BG Group believes stable, long-term, globally-linked carbon pricing will provide the most effective policy framework and is necessary to provide a clear roadmap for its future investments, BG Group said in a statement on Tuesday.