Positions and principles
Positions and principles
ExxonMobil has supported the goals of the Paris Agreement on climate since its inception, and has consistently voiced support for U.S. participation in the agreement. We have also actively engaged with government officials to encourage remaining in the Paris Agreement.
ExxonMobil aims to achieve net-zero emissions from its operated assets by 2050 and is taking a comprehensive approach centered on developing detailed emission-reduction roadmaps for major operated assets. This ambition applies to Scope 1 and Scope 2 greenhouse gas emissions. It builds on the Company’s 2030 emission-reduction plans, which include plans to reach net-zero emissions in our Permian Basin operations by 2030, and ongoing investments in lower-emission solutions, including carbon capture and storage, hydrogen and biofuels. The Company’s roadmap approach identifies greenhouse gas emission-reduction opportunities and the investment and future policy needs required to achieve net-zero.
Accelerating emissions reductions
Our 2030 emission-reduction plans are consistent with Paris-aligned pathways, the U.S. and European Union’s Global Methane Pledge, and the U.S. Methane Emissions Reduction Action Plan. Compared to 2016 levels, these plans are expected to achieve:
- 20-30% reduction in corporate-wide greenhouse gas intensity and an absolute reduction of approximately 20% (or approximately 23 million metric tons).
- 40-50% reduction in upstream greenhouse gas intensity and an absolute reduction of approximately 30% (or approximately 15 million metric tons).
- 70-80% reduction in corporate-wide methane intensity.
- 60-70% reduction in corporate-wide flaring intensity.
These plans are also expected to achieve World Bank Zero Routine Flaring by 2030. Similarly, absolute flaring and methane emissions are expected to decrease by 60% and 70%, respectively. These emission-reduction plans cover Scope 1 and Scope 2 emissions from assets the Company operates. For non-operated assets, the Company works with its equity partners to advance greenhouse gas reductions to achieve comparable results.
Investing $15 billion in lower-emission opportunities
Over the next six years, we plan to invest more than $15 billion on initiatives to lower greenhouse gas emissions. A significant share is focused on scaling up carbon capture and storage, hydrogen and biofuels. Stronger policy further accelerates development and deployment of lower-emission technologies, and would provide ExxonMobil additional investment opportunities to reduce greenhouse gas emissions. The Company's robust research and development process, continued evaluation of emerging technologies, and global collaborations will be key to identifying and growing lower-emission opportunities.
Advocating for sound policies
Recognizing that sound government policies are required and can act as an accelerator for lower-emission alternatives, ExxonMobil actively participates in climate-related policy discussions around the world.
The Company focuses on practical policy solutions that recognize the increasing global demand for affordable and reliable energy while enabling scalable development and deployment of lower- and zero-greenhouse gas emission technologies.
Durable and predictable market-driven policies can further incentivize developments, and scale investments in lower-emission technologies to help achieve the Paris Agreement goals at the lowest cost to society.
A good example is a coordinated and transparent economy-wide price on carbon such as a carbon tax. An established carbon price would enable all technologies to compete and cost-effectively lower carbon intensity while delivering meaningful emission reductions. Broad adoption of an economy-wide price on carbon could also help spur the development of global carbon markets as envisioned in Article 6 of the Paris Agreement.
In the absence of economy-wide carbon pricing, well-designed sector-based policy options could also be an effective way to reduce emissions. ExxonMobil supports the approaches outlined below, which help address emissions in manufacturing, transportation and power generation.
For the manufacturing sector, ExxonMobil’s focus is on carbon capture and storage and hydrogen. The International Energy Agency and the U.N. Intergovernmental Panel on Climate Change have identified both hydrogen and carbon capture and storage as vital to reducing emissions associated with manufacturing and heavy industry.
The carbon capture and storage opportunities that ExxonMobil is evaluating have the potential to move forward with current technologies. However, to drive investment and deploy the technology at the pace and scale needed to meet the Paris Agreement goals, governments must establish durable regulatory and legal frameworks as well as incentives, similar to those available for other more established low-emission technologies. Low-carbon policies should be clear, cost-effective, technology-neutral and aligned with free-market principles.
ExxonMobil supports a policy and regulatory framework for carbon capture and storage that would:
- Sustain long-term government support for research and development.
- Provide standards to ensure safe, secure and permanent CO₂ storage.
- Allow for fit-for-purpose CO₂ injection well design standards.
- Provide legal certainty for pore space ownership.
- Ensure a streamlined permitting process for carbon capture and storage facilities.
- Provide access to CO₂ storage capacity owned or controlled by governments.
- Allow for trading of high-quality offsets generated from carbon capture and storage and low-carbon projects.
ExxonMobil is actively engaging stakeholders and potential partners on these policy enablers that can unlock Low Carbon Solutions business opportunities and contribute to a lower-emission future.
A holistic Low Carbon Transport policy that combines a market-based, technology-neutral fuel standard with a life-cycle vehicle CO₂ emission standard could drive emission reductions across the entire vehicle fleet.
ExxonMobil advocates for a carbon intensity-based fuel standard approach that can also be extended to the harder-to-decarbonize aviation and marine sectors. The Company was a lead participant in developing the American Petroleum Institute’s policy framework that includes an action plan to reduce life-cycle emissions in the U.S. transportation sector.
A technology-neutral clean energy standard, or carbon intensity standard, could reduce CO₂ emissions in the electricity sector by setting targets based on carbon intensity and incentivizing necessary infrastructure and lower-emission options, including natural gas, renewables, carbon capture and storage and negative-emission technologies such as bioenergy with CCS, and direct air capture.
ExxonMobil participated in the U.S. Chamber of Commerce’s development of policy principles to underpin a U.S. clean energy standard for the electricity sector. The Company continues to support engagement with the U.S. government on this issue.
ExxonMobil supports an open, unbiased and rules-based trade and investment system and sees those principles as essential to global free enterprise and to promoting productivity and economic growth. Furthermore, free trade and strong investment protections buttress energy security by encouraging access to diverse energy supplies and production sufficient to meet growing global demand.
ExxonMobil relies on free trade agreements and policies, including for example strong investment protection provisions in the U.S.-Mexico-Canada Trade Agreement (USMCA). Providing a level playing field to import and export goods and services ultimately gives consumers greater choice.
Sound trade policies and investment protections also enable effective supply chains and the efficient movement of capital, people, information and all products.
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