Policies to cut carbon emissions not sustainable: BP

BP has warned that carbon dioxide emission levels from burning fossil fuels are unsustainable unless the international community unilaterally introduces tougher binding regulations on atmospheric pollution.

The stark warning from the UK’s second-largest oil company came with the publication on Tuesday of its closely-watched long-term outlook for global energy markets, which predicts that CO2 emissions will increase by 1pc per year, or 25pc in total, through to 2035.

This rise in pollution would be worse than the current rate, which scientists have said would have a negative effect on climate change. The United Nations is seeking to limit the increase of the average global surface temperature to no more than 2C, compared with pre-industrial levels, to avoid “dangerous” climate change, and will hold a major conference in Paris in December to agree on a firm system for restricting emissions.

Bob Dudley, BP chief executive, said: “The most likely path for carbon emissions, despite current government policies and intentions, does not appear sustainable. The projections highlight the scale of the challenge facing policy makers at this year’s UN-led discussions in Paris. No single change or policy is likely to be sufficient on its own.”

Oil companies such as BP and Shell are coming under increasing pressure from shareholders and governments to clearly define their policies surrounding climate change. The so-called “carbon bubble” theory argues that shares in the oil industry could plummet due to the need to limit global warming.

However, many experts are divided over the most effective course of action to take in order to encourage lower fossil-fuel energy consumption and a switch to renewables, especially in the rapidly growing Asian economies.

“Identifying in advance which changes are likely to be most effective is fraught with difficulty. This underpins the importance of policy-makers taking steps that lead to a global price for carbon, which provides the right incentives for everyone to play their part,” said Mr Dudley.

Last November, China and the US – which combined account for 40pc of global carbon dioxide emissions – agreed to firm targets to limit polution. Beijing agreed to concrete limits on emissions for the first time and the US said that it would make further reductions to the levels of CO2 that the world’s largest economy pumps into the atmosphere.