The European Union’s climate regulations may lead to it halting its investments in Europe, ExxonMobil has warned.
Speaking to the Financial Times, Karen McKee, president of the product solutions division, said the oil and gas giant had struggled to begin decarbonisation projects in Europe due to the regulatory burden. The result, she added, was that it might look to prioritise other parts of the world as a result.
“When we make investments, we’ve got very long time horizons in mind,” McKee continued. “I would say that recent developments in Europe have not instilled confidence in long-term, predictable policies.”
Under the auspices of its Green Deal climate law, for example, the EU has a legal obligation to reach climate neutrality by 2050. By adopting it, the EU and its member states committed to cutting net greenhouse gas emissions in the trading bloc by at least 55% by 2030, compared with 1990 levels. This target is legally binding and based on an impact assessment carried out by the Commission.
Greenhouse gas intensity
Recently ExxonMobil released a report, 2024 Advancing Climate Solutions, outlining what it was putting in place around decarbonisation. In it the firm stated it was aiming to reduce its greenhouse gas intensity by up to 30% over the next six years. It also claimed to have reduced its operated greenhouse gas emissions by more than 10% in the last eight years.
“We are pursuing more than $20bn in lower-emission investments from 2022 through 2027, in addition to the approximately $5bn Denbury acquisition,” the report noted. “About 50% of our lower-emission investments are targeted at reducing emissions from operated assets, with the balance going toward reducing the emissions of other companies.”
It added: “We are focused on customers in the heavy industry, power generation and commercial transportation sectors. These sectors provide great economic value and generate significant emissions that aren’t easy to cut. Together, these sectors account for about 80% of energy-related CO₂ emissions today.”
