Companies will profit in the energy transition by updating a time-honored method: build the equivalent of a less emissions-intensive mousetrap and the climate-conscious world will beat a path to your door.
It’s happening already, experts indicated during a webinar hosted by Rice University’s Baker Institute for Public Policy on April 27.
“It’s early still, but we are starting to see initial indications of emissions intensity being a competitive factor within the market for commodities,” said Amy Bowe, head of carbon research at Wood Mackenzie. “For instance, we have seen companies announce carbon-neutral LNG cargoes and, more recently, carbon-neutral crude cargoes. We have seen, in addition to this … emissions intensity has been a criterion in some LNG contracts.”
In addition to monetization, panelists also tackled the conundrum of standardization, or lack thereof, in ways to measure emissions from different companies. There are significant discrepancies among oil companies in their reporting of emissions, said Hassan El-Houjeiri, climate and sustainability technology strategist for Saudi Aramco.