ExxonMobil's (XOM, Financial) CEO, Darren Woods, emphasized the importance of a pragmatic approach in influencing global policies during the annual United Nations Climate Change Conference. Woods spoke at the conference held in Baku, Azerbaijan, underscoring the potential of the United States to shape international climate strategies.
Historically, former U.S. President Donald Trump withdrew the U.S. from the Paris Climate Agreement in 2017 and indicated plans to exit again if re-elected. Conversely, current President Joe Biden re-entered the agreement on his first day in office, a move supported by ExxonMobil.
Trump has criticized the Paris Agreement as unfair to the U.S., focusing his energy policy on unlimited fossil fuel production. He has also vowed to reclaim unused funds under the Inflation Reduction Act.
ExxonMobil plans to invest $20 billion by 2027 in innovative technologies for carbon capture and storage, hydrogen fuel, and lithium extraction for electric vehicle batteries in the U.S. These investments are contingent on federal tax credits established or expanded under the Inflation Reduction Act. Woods cautioned that any reduction or elimination of these incentives could alter their investment strategies.
In his remarks, Woods highlighted the necessity of incentives to support investment returns, warning that the absence or reduction of such incentives would likely shift their investment plans.
