Policy Spotlight – Inflation Reduction Act (IRA)

With the passage of the Inflation Reduction Act (IRA), the U.S. government enacted a set of climate policies to potentially incentivize a lower carbon economy. ExxonMobil engaged in lobbying for provisions in the legislation including incentives for carbon sequestration and storage, which, if brought to scale, can help reduce the emissions of hard-to-abate sectors. Below ExxonMobil leaders explain how supportive policies like the IRA can drive advances in necessary technologies – and the markets to support them – thereby helping make society’s net-zero ambitions a reality.

• “When we consider the potential incentives from the U.S. Inflation Reduction Act, it is clear to see the importance of constructive policy in supporting efforts to decarbonize the economy…this clearly illustrates the impact policies like the IRA can have.” –Darren Woods Chairman and Chief Executive Officer

• "ExxonMobil is providing critical and scalable solutions to reduce CO₂ emissions, and we’re ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We’re encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the “Inflation Reduction Act.” –Dan Amman, President of Low Carbon Solutions

_FOOTNOTES:

_{¹With advances in technology and the support of clear and consistent government policies, we aim to achieve net-zero operated Scope 1 and 2 greenhouse gas emissions by 2050. We have also set a goal to be net zero in Scope 1 and 2 greenhouse gas emissions by 2030 for our Permian Basin unconventional operated assets.
Charts illustrate potential GHG abatement options for Scope 1 and 2 greenhouse gas emissions, based on current roadmaps for major operated assets and ExxonMobil analysis. These options are not all-inclusive, may not reflect investment decisions made by the company, and are subject to change as a result of a number of factors, including abatement reduction magnitude, implementation timing, abatement cost, portfolio changes, policy developments, technology advancement, alignment with our partners and other stakeholders, and as annual company plans are updated.}

_{²Based on preliminary ExxonMobil analysis of U.S. IRA provisions. All assumptions and interpretations of U.S. IRA incentives are subject to change. IRS has yet to publish guidance and regulations to implement the U.S. IRA 45V.}