Exxon serves up hard lesson in climate

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🗞️ Driving the news: ExxonMobil’s latest Global Outlook delivers a sharp critique of European climate policy, portraying the EU as a cautionary tale of decarbonization done wrong
• The report argues that Europe's regulatory-heavy approach has led to rising energy costs, weakened industry, and declining public support for clean tech
• Framing it as a “lesson” for U.S. policymakers, Exxon warns against replicating what it calls Europe’s overambitious and underprepared climate agenda

🔭 The context: Europe has positioned itself as a global leader on climate, enacting stringent emissions targets, supply chain transparency mandates, and a push for renewables
• Exxon’s CEO, Darren Woods, has pushed back — urging the U.S. to resist EU regulatory models, particularly those involving mandatory environmental and human rights audits
• This report follows mounting legal challenges accusing Exxon of misleading the public about climate risks, further intensifying the company’s defensive stance

🌍 Why it matters for the planet: Exxon’s critique reflects a broader divide between climate ambition and fossil fuel incumbency
• By portraying energy transition policies as economically damaging, the report may influence policymakers to adopt more conservative climate strategies
• While Exxon insists it supports the transition “done smartly,” its framing risks undermining urgency at a critical juncture for emissions reductions and energy system transformation.

⏭️ What's next: The report is likely to embolden opposition to stricter climate policies in the U.S. and reinforce resistance to EU-style regulations
• However, it also invites pushback from climate advocates and investors urging faster decarbonization
• As global negotiations and regulatory frameworks evolve — especially ahead of COP30 and transatlantic trade discussions — this narrative battle over climate policy design will intensify

💬 One quote: “You need to be smart about it,” — Chris Birdsall, Exxon’s head of economics and energy. “Politicians sold the idea that renewables would mean cheaper energy — when in reality, the bill was always going to come in high”

📈 One stat: Europe’s energy costs rose over 40% from 2021 to 2023, a spike exacerbated by war-related gas disruptions but also cited by Exxon as evidence of flawed transition planning

See on illuminem's Data Hub™ the sustainability performance of ExxonMobil and its peers Chevron, Shell, and BP

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