Trade Tensions Put Energy Transition At Risk

Trade tensions risk throwing the global economy’s transition to greener energy into disarray and could hurt energy companies’ preparations toward it, BP Chairman Helge Lund said as leaders of the world’s largest economies gather for talks in Japan. Lund, in his first interview since taking office in January, said BP would rather see a rapid, orderly phasing out of fossil fuels than a delayed and disorganized transition. The former chief executive of Norwegian oil group Equinor said BP as well as rivals such as Royal Dutch Shell (RDSa.L) and ExxonMobil (XOM.N) would have a vital role to play to ensure a successful transition to low carbon economies. “It is better for us to see a path that goes rapidly,” Lund said. “It will be very difficult for the oil and gas companies but that is a better and a preferred solution than an uncontrolled sudden change maybe 10, 15 years into the future.” London-based BP, like some of its peers, has taken steps toward meeting the 2015 Paris Climate Agreement to limit global warming, including setting targets to reduce carbon emissions from its operations, link them to managers’ pay and ensure that investments are in line with the accords. But many investors say BP will have to do more, including tackling emissions from the fuels and products it sells to millions of customers daily, known as Scope 3 emissions, to prevent a catastrophic rise in global temperatures.

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So, solution is to introduce a price on carbon emissions... 

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No rules, no green... China has slated this year alone to build 1600 new coal power plants to create 292 gigawatts of cool power energy. That's more than the u.s. burn in a year. Guess what: they don't have a carbon tax...👎

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The idea behind a carbon tax on one Energy option is to get one to use the other energy option as it's cheaper. And, it's okay. But there is no other reliable energy option for coal power, and real question is how to compense it.

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