Climate Change and Energy Policy: A Call to Action
As the world grapples with the challenges of climate change, Exxon Mobil CEO Darren Woods is urging President-elect Donald Trump to maintain the United States’ involvement in global efforts to address this critical issue. Woods believes that a “common sense” approach is necessary to ensure the U.S. continues to influence policy around the world.
The Importance of International Cooperation
Speaking from the annual U.N. Climate Change Conference in Baku, Azerbaijan, Woods emphasized the need for international cooperation to combat climate change. He highlighted the significance of the Paris climate agreement, which the U.S. rejoined under President Joe Biden in 2021. Exxon Mobil supported this decision, recognizing the importance of collective action to mitigate the effects of climate change.
Investing in a Sustainable Future
Exxon Mobil has committed to investing $20 billion through 2027 in carbon capture and storage technology, hydrogen fuel, and lithium mining in the U.S. for electric vehicle batteries. These investments are crucial for reducing emissions and promoting sustainable development. However, Woods warned that the company’s investment plans depend on federal tax credits established or expanded under the Inflation Reduction Act. Weakening or repealing these incentives could alter Exxon’s investment strategy.
The Role of Federal Policy
Federal policy plays a critical role in shaping the energy landscape. Trump’s campaign platform emphasized unconstrained fossil fuel production, while Biden’s administration has supported clean energy initiatives. Woods emphasized that Exxon’s oil and gas production levels are determined by shareholder returns, not political affiliations. He expressed uncertainty about how Trump’s “drill, baby, drill” slogan would translate into policy.
A Call to Action
As the world navigates the complexities of climate change and energy policy, it is essential to prioritize international cooperation, sustainable investments, and forward-thinking federal policies. By working together, we can create a more environmentally conscious and economically viable future.
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