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The CEO of Exxon has called on President-Elect Trump to keep the United States in the Paris climate agreement.
Let’s bring you up to speed: The Paris Agreement, adopted in 2015, is an international treaty aimed at limiting global temperature rise to below 2 degrees Celsius, with an aspirational target of 1.5 degrees. It requires participating nations to set and pursue their own targets for reducing greenhouse gas emissions, with regular reporting every five years to ensure transparency and progress. Supporters, including many Democrats and President Biden, advocate for the agreement as a crucial step in combating climate change, stressing that collective global action is necessary to mitigate environmental risks. Critics, including President-elect Trump and some Republicans, argue that the agreement places undue economic burdens on the US, fearing that compliance could disadvantage American industries and lead to job losses without guaranteeing comparable actions from other nations.
What’s going on now: Exxon CEO Darren Woods is now publicly advocating for the US to maintain its commitment to the Paris Accord and other similar climate agreements, arguing that it will cost companies more if there is an abrupt shift in climate policy. Woods claimed that such policy swings are detrimental to business stability.
In an interview with Politco, Woods said, “I’ve been advising that we have some level of consistency. One of the challenges with this polarized political environment we find ourselves in is the impact of policy switching back and forth as political cycles occur and elections happen and administrations change. That’s not good for the economy.”
What Exxon is doing: According to Woods, Exxon has committed over $15 billion through 2027 to initiatives focused on reducing emissions and addressing climate concerns. A significant portion of this investment is allocated to carbon capture, utilization, and storage (CCUS) technology, which Exxon views as essential for mitigating emissions from traditional energy sources. This includes extensive CCUS projects across the Gulf of Mexico, Louisiana, and Texas, where captured carbon is stored in underground reservoirs to prevent it from entering the atmosphere.
