BP, Ecopetrol, Trafigura first users of new supply chain carbon emissions platform - Splash247 - Splash 247
BP, Ecopetrol, Trafigura first users of new supply chain carbon emissions platform - Splash247
BP, Ecopetrol, Trafigura first users of new supply chain carbon emissions platform
A supply chain carbon emissions platform named Agora for Energy was launched on Wednesday at this year’s edition of the Asia Pacific Petroleum Conference (APPEC) in Singapore.
The platform, created by Trafigura and Palantir Technologies, enables collaboration on carbon emissions information and carbon intensity benchmarking and analysis.
First users include BP, Ecopetrol, and Trafigura who share the goal of continual improvement in transparency of energy supply chain emissions.
Drawing on S&P Global Commodity Insights’ carbon intensity measures of oil and gas, refined products and biofuels, combined with the option for users to input primary data, Agora for Energy will help users understand the variations in carbon intensity of existing supply chains from the point of production and enable a common approach to assets owned and operated by different companies.
Involved parties are in the process of forming an advisory committee for the Agora for Energy platform which will focus on industry standardization of carbon intensity reporting and developing recognized methodologies of reporting.
“We believe that carbon intensity as a commodity specification can enable greater visibility of low carbon alternatives,” said Ben Luckock, co-head of oil trading at Trafigura.
“As first users of Agora, we are pioneering innovative solutions to collaboratively decarbonize energy operations and foster unprecedented transparency,” said Juan Carlos Fonnegra, global head of crude and carbon trading at Ecopetrol.
During the initial pilot, Palantir and Trafigura configured scenarios across 10m carbon pathways using actualised commodity shipments by integrating Trafigura data and metrics supplemented by third-party data.
The Agora platform enables users to actively share and receive carbon emissions data from supply chain participants and reduce the administrative burden, whilst improving transparency of overall carbon intensity of supply chains. It also enables the evaluation of alternative supply chain pathways by modelling the commercial impacts of carbon pricing mechanisms on supply chain choices.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”