Overview
Our Commercial organization trades CO2 allowances to optimize emissions management in countries implementing emission-trading programs. 

Our Approach
Where our operations are subject to GHG regulation our goal is to meet our compliance obligation in the most cost-effective manner possible.  We begin by understanding the cost and impact of our internal GHG reduction opportunities, for example, projects to improve energy efficiency in our operations.

When reducing our own emissions will be costly and where the regulatory system allows trading, we consider purchasing allowances and high-quality offset credits to meet our compliance obligations. 

Carbon Trading Around the World

Europe
Since 2005, ConocoPhillips facilities across Europe have participated in the European Union’s emissions-trading program (EU ETS).  The company’s Commercial organization trades CO2 allowances on the secondary market exchanges.

Canada
ConocoPhillips Canada participates in the regional emissions reduction scheme in the province of Alberta and has experience with all the compliance mechanisms of that program:

• Making internal improvements to operations to reduce emissions;
• Purchasing or using Emission Performance Credits (EPC);
• Purchasing Alberta-based offset credits; and
• Contributing to the Climate Change and Emissions Management Fund (CCEMF).