World’s fifth biggest oil company to join others in voluntary greenhouse gas reductions
Petróleos Mexicanos (PEMEX) has become the first Latin American company to announce that it will reduce greenhouse gases and joins seven of the world’s major industrial players, whose joint carbon dioxide emissions place them among the top 15 industrialised countries, in a joint action.
PEMEX, the fifth largest oil company in the world and the only organisation responsible for developing Mexico’s hydrocarbon reserves, which are ranked among the 10 largest on Earth, announced that it is to join the Partnership for Climate Action, the brainchild of the US NGO Environmental Defense, along with BP and Shell and other key world industrial leaders, which last year pledged to cut carbon dioxide emissions by 20% (see related story). During the first phase of its voluntary programme, PEMEX will use internal emissions trading to make greenhouse gas reductions of 1% below 1999 levels. After this the company will finalise its 10-year target and begin the second phase of a cap-and-trade programme.
Under such an approach, PEMEX will set an overall limit on emissions of the greenhouse gas carbon dioxide; the limit will then be assigned to its four subsidiaries. The facilities within those subsidiaries will be free to choose how to meet their assigned limit and can either make the reductions directly or acquire them from another facility that has made extra reductions. Through this approach PEMEX believes that it will find the lowest cost emission reductions.
“Saving energy reduces costs, makes PEMEX more competitive, helps to preserve our natural resources, and allows us to reduce our emissions of greenhouse gases, uniting the company in the common effort of people, other companies and countries that are looking to mitigate and reduce the implications of climate change,” said PEMEX Director General Raul Munoz Leos. “This month we have established among the PEMEX subsidiaries an internal carbon emissions trading market; for its design we were honored to have support from Environmental Defense.”
“We applaud PEMEX for taking an emissions cap, the first step in learning how to measure, manage and reduce its greenhouse gas emissions ” commented Environmental Defense Executive Director Fred Krupp. “Part of the responsibility of being a world-class company is taking steps to address global problems such as climate change; by establishing a long-term greenhouse gas reduction program PEMEX is demonstrating such leadership.”