BP aims to be net-zero by 2050. British Petroleum recently announced a new green initiative, BP will spend more on clean energy and less on fossil fuels going forward. By 2050, BP aims to achieve net-zero greenhouse gas emissions, joining a growing list of governments and corporations committed to tackling climate change. Is the BP Net-Zero Plan actually good for the environment?The most important part of the plan is that BP is to sell off a large chunk of its oil and gas assets. When BP sells these assets, BP shareholders are paid the fair value of these buried oil assets. The producer who can pay the most to buy them, will be the producer who can extract the oil at the lowest possible cost, possibly by skirting best practices in terms of health and safety and environmental practices.
In economics people talk about the law of unintended consequences, which is often used as a warning that an intervention in a complex system can sometimes bring about unanticipated and often undesirable outcomes. Is selling these assets off as part of an environmental drive by BP likely to bring about the unintended consequence of the assets being exploited by operators who are less environmentally friendly than the current asset owner?
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