Exxon Mobil Corp XOM CEO Darren Woods has urged President-elect Donald Trump to reconsider withdrawing from the Paris climate agreement.
What Happened: Woods emphasized that policy inconsistency creates challenges for businesses in an interview with The Wall Street Journal, stating, “I don’t think the stops and starts are the right thing for businesses… It is extremely inefficient. It creates a lot of uncertainty.”
Trump, who previously withdrew the U.S. from the agreement during his first term before President Joe Biden rejoined it in 2021, is expected to exit again. This puts Exxon, which has supported the accord since 2015, at odds with the incoming administration.
Woods, speaking from the UN climate conference (COP29) in Baku, Azerbaijan, affirmed that Exxon will maintain its current strategy, including its $20 billion investment in low-carbon technologies through 2027. “We don’t let political agendas drive our business and investment decisions,” he stated.
The situation highlights a growing divide in the oil industry. As analyst Paul Sankey noted, according to WSJ, “It’s ironic that the major oil companies are not supportive of the ‘drill, baby, drill,’ strategy, nor are their shareholders. They’ve been working very hard to lower their emissions, and the last thing they want is for all the rules and regulations to change again.”
Why It Matters: The U.S.’s stance on the Paris Climate Agreement has been a contentious issue, with potential implications for global climate change efforts and the business world. Trump’s plan to withdraw the U.S. from the agreement was signaled during his re-election campaign.
This move was met with criticism from environmentalists and leaders, including actor Leonardo DiCaprio, who endorsed then-Democratic candidate Kamala Harris for her climate policies.
On the other hand, Trump’s pro-business policies have been praised by some for their potential impact on the stock market. Finance professor Jeremy Siegel suggested that Trump’s policies could drive the stock market to unprecedented levels, highlighting the complex interplay between climate policy, business, and the financial markets.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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