Reducing Supply Will Not Solve Climate Change – ExxonMobil  

Oil major ExxonMobil Corp has warned that attempting to limit the supply of fossil fuels will impede progress toward achieving net zero emissions as well as potentially perpetuating poverty for millions in the developing world. Speaking at the Asia Pacific Economic Cooperation CEO Summit in San Francisco, ExxonMobil CEO Darren Woods, insisted that the solution to climate change has been too focused on reducing supply, noting that it’s “a recipe for human hardship and a poorer world.” Woods said that attacking oil and gas companies for their role in climate change will only serve to keep net zero as an “aspiration” rather than a reality Woods called for governments to “harness the industry’s capabilities for change” by providing taxpayer support for emissions-reducing technologies like carbon capture before market forces can take over. Exxon has ramped up its energy transition efforts over the past two years after losing a bruising proxy battle with activist investor Engine No. 1 at the height of the ESG movement. It plans to spend $17 billion over six years on low-carbon initiatives, and it recently acquired Denbury Inc., the largest carbon dioxide pipeline operator in the US, for about $5 billion.  But Exxon is also spending big on oil and gas. It agreed to buy US shale driller Pioneer Natural Resources Co. last month in a deal valued at about $62 billion. Woods is adamant that Exxon won’t reduce oil and gas production or invest heavily in renewable energy as his European peers have done. Instead, the Texas oil giant will invest in low-carbon technologies that complement fossil fuels such as carbon capture and hydrogen.  “Oil and gas companies reliably provide affordable products essential to modern life,” he said. “Making them into villains is easy. But it does nothing – absolutely nothing – to accomplish the goal of reducing emissions.” In unusually personal remarks, Woods talked about his commitment to the environment.  “I’m a father and grandfather – who cares about his family, their quality of life, and their futures. Which means I care very much about our environment and the health of our planet,” he said. He also attempted to draw a line under the multiple climate lawsuits that have dogged Exxon for much of the last decade.  “I’m fully aware that there are many who question ExxonMobil’s commitment because of what was said over 30 years ago – or what they think Exxon knew back then,” he said.  “Frankly, I’m more interested in what ExxonMobil knows today. Climate change is real. Human activity plays a major role,” he added.

Stakeholders lagging behind on global warming fight, says UN

The United Nations has said that the world is not on target to curb global warming, insisting that more action is needed from all stakeholders. According to the Global Stocktake report, “The Paris Agreement has driven near-universal climate action by setting goals and sending signals to the world regarding the urgency of responding to the climate crisis,” it said. “While action is proceeding, much more is needed now on all fronts.” The report, culminating a two-year evaluation of the 2015 Paris climate agreement goals, distils thousands of submissions from experts, governments and campaigners and will lay the groundwork for the global stock-take discussion at COP28. Nearly 200 countries agreed in 2015 in Paris to limit warming to no more than 2 Celsius above pre-industrial levels, and to strive to keep the increase to 1.5 C. While each country is responsible for deciding its own climate actions, they also agreed to submit to a progress report by 2023 to see what more should be done. Some of the world’s most climate vulnerable countries expect the report to spur action from global leaders. The U.N. said existing national pledges to cut emissions were insufficient to keep temperatures within the 1.5 C threshold. More than 20 gigatonnes of further CO2 reductions were needed this decade – and global net zero by 2050 – in order to meet the goals, the U.N. assessment said. “With leaders gathering this month for the United Nations Secretary General’s Climate Ambition Summit ahead of COP28, the findings and recommendations of this Report need to be a wake-up call and a trigger for cogent commitments,” chair of Association of Small Island States, Pa’olelei Luteru said. The report urged countries to cut the use of “unabated” coal power by 67-92% by 2030 versus 2019 levels and to virtually eliminate it as a source of electricity by 2050. Low and zero-carbon electricity should account for as much as 99% of the global total by mid-century, while technological challenges holding back carbon capture must be resolved. The report also called for funding to be unlocked to support low-carbon development, noting that billions of dollars were still being invested in fossil fuels. “It serves up a bold to-do list for governments to limit warming to 1.5C and protect people everywhere from climate devastation,” said Tom Evans, policy advisor on climate diplomacy at British climate think tank E3G. Commitment is needed to phase out fossil fuels, set 2030 targets for renewable energy expansion, ensure the financial system funds climate action, and raise funds for adaptation and damage, he said. “Anything less will fall short on the necessary steps laid out in this report.”