In a letter to the Financial Times, executives: Bob Dudley of BP, Ben van Beurden of Royal Dutch Shell, Eldar Saetre of Statoil, Patrick Pouyanne of Total, Claudio Descalzi of Eni and Helge Lund BG Group all wrote in support of carbon pricing. Which is the taxation of fuel sources based on their carbon dioxide output. The executives acknowledged the dangers of climate change and argued that carbon pricing is an effective measure to combat climate change.
“We owe it to future generations to seek realistic, workable solutions to the challenge of providing more energy while tackling climate change. We urge governments to create the incentives that will encourage all contributors to a more sustainable future.”
Because natural gas generates about half of the carbon emissions compared to coal is an improved alternative for the environment. A carbon tax would help make natural gas more competitive in the market and reduce the use of coal.
“Renewable energy has an increasing role to play — and our companies have significant investments in renewable energy too. However, the need to cut emissions is so essential that we have to pursue all options to lower carbon while providing the energy the world needs to meet demand from a growing population seeking better living standards. Natural gas can help deliver this.”
The authors stressed that they did not want special treatment and wanted all energy sources to be taxed equally. A complete carbon tax on all energy sources gives an advantage to carbon-free energy sources to compete in the market, and can help spur the growth of renewable energy
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Effective Measures for Tackling Climate Change: An Analysis of the Divestment Movement
Carbon Pricing: What US must learn from Australia