1. CAPCO GHG Position By: 蕭勝賢 (S.S.Hsiao) Date: Sep. 25 2003

2. CAPCO GHG Position2 Content CAPCO GHG Background Done, Learning, Doing & Expecting Climate Change - BP Policy and Plans (Jun 2003) BP Emission Trading

3. CAPCO GHG Position3 Why CAPCO is Doing This ? Shareholders 1999 before:50% Amoco, 25% CPC & 25% CIHC Since 1999 :50% BP, 25% CPC & 25% CIHC May 2003: 59.02% BP, 33.3% CPC & ??? Green Enterprise BP To sustain our position as one of the world’s leading energy producers and suppliers. To minimise damage to the natural environment resulting from our activities. To be at the forefront of the global transition to a lower carbon energy economy.

4. CAPCO GHG Position4 BP Reporting Guideline http://www.bp.com/

5. CAPCO GHG Position5 Getting GHG Right GHG Reporting Completeness Accuracy Consistency Transparency GHG Improvement Energy efficiency Material burning

6. CAPCO GHG Position6 What CAPCO Had Done GHG team setup @ 1999 Requirements review & boundary setting Emission data collection, calculation, checking & reporting 1990, 1998 ~ 2003 Q2 GHG reporting External auditing @1999 (DNV, KPMG…) 1% GHG reduction @1999 & 2000 Develop GHG reduction plans Buying emission quota for No.6

7. CAPCO GHG Position7 What CAPCO Is Doing Quarterly emission calculation & reporting Movement report Energy efficiency improvement vs. GHG emission reduction Self auditing programs BP information understanding

8. CAPCO GHG Position8 What CAPCO Had Learned Improve GHG data consistency BP is more serious than we though 100 + 1 to “DO” something Job has to be done We are behind the trend

9. CAPCO GHG Position9 What CAPCO Is Expecting Clarify the government policy Emission factor standard Do it early if it really has to be done Continue energy as well as GHG performance improvement

10. CAPCO GHG Position10 Climate Change BP Policy and Plans (Jun 2003) Coping with Climate Change What BP has achieved so far New challenges & meeting the challenges Energy Efficiency and Responsible operations CO 2 Capture & Storage Lower carbon products and portfolio Emissions Markets - Expanding Rapidly Working in partnership to develop solutions

11. CAPCO GHG Position11 Climate Change Position Papers -(Jun 2003) BP’s Overall Position on Climate Change Addressing the Climate Impact from our own Operations Carbon Capture & Storage Biologic Sequestration Understanding the Carbon Impacts and Benefits of BP Products Emissions Trading Clean Development Mechanism Lower Carbon Energy

12. CAPCO GHG Position12 Climate Change Position Papers -(Jun 2003) What the issues are? What BP Wants to Achieve BP’s current position What We Plan To Do and Why

13. CAPCO GHG Position13 BP Emission Trading - Backgrounds Pilot system in 1999 and operated it across BP in 2000 and 2001. Met at the end of 2001 by managing our emissions to 10% below the 1990 baseline. Decided to suspend internal trading system at beginning of 2002, In April 2002, joined the UK government- sponsored emissions trading scheme

14. CAPCO GHG Position14 BP Emission Trading - What it is Greenhouse gases are particularly appropriate for trading. Unlike other pollutants where the local impact is most important, the impact of climate change is felt globally and it is global concentrations of greenhouse gas that have to be reduced. Two main types of emissions trading Allowance trading Credit trading

15. CAPCO GHG Position15 BP Emission Trading - What it is