Exxon Mobil’s top executive is urging European lawmakers to abandon a key sustainability law, describing it as a ‘seriously misguided attempt to eliminate oil and gas’ in the fight against climate change.
These remarks from CEO Darren Woods, made during an interview with The New York Times, follow closely on the heels of criticism from U.S. officials regarding the European Union’s aggressive push to cut planet-warming greenhouse gas emissions. Europe itself has endured one of its warmest summers ever, prompting its governments to implement measures to safeguard both their citizens and economies from the increasing threats of extreme weather, intensified by the combustion of fossil fuels like coal, oil, and gas.
Woods confirmed discussions with both the Trump administration and European legislators concerning a regulation that mandates large companies operating within the 27-member economic bloc to proactively identify and mitigate negative environmental and human rights impacts across their global supply chains. This regulation, formally known as the Corporate Sustainability Due Diligence Directive, was initially passed in 2024 after years of discussion. Its implementation has faced delays, with companies now expected to comply starting in 2028.
Woods stated, “We view this as a substantial obstacle to maintaining our operations and achieving business success in Europe.” Exxon remains the largest oil and gas company in the United States.
Under these rules, companies operating in Europe will be required to develop strategies to cut their greenhouse gas emissions, aligning with the Paris Agreement’s objective of keeping global temperature increases within manageable limits. This directive is consistent with the European Union’s wider commitment to achieve climate neutrality by the middle of the century.
To achieve its ambitious 2050 goal, the European Union has also established legally binding short-term emission reduction targets. The bloc aims to cut emissions by 55 percent by 2030, relative to 1990 levels, and is currently discussing its proposed reduction targets for 2035.
Earlier this week, EU energy ministers convened to deliberate on the proposed emission reductions for 2035 and 2040. Disagreements persist regarding the intensity of these cuts, making it uncertain if a consensus on 2035 targets will be reached before the global climate summit in November, set to take place in Belem, Brazil.
Wopke Hoekstra’s office, the European Union’s climate commissioner, did not provide an immediate response to inquiries.
A wide scientific consensus confirms that rising global temperatures are exacerbating extreme weather events like droughts, storms, and wildfires, leading to trillions of dollars in economic damages worldwide.
European legislators argue that renewable energy sources, such as wind and solar, offer crucial energy independence, reducing reliance on other countries for power. This has become particularly vital following Russia’s invasion of Ukraine, as Russia was a primary supplier of natural gas for Europe’s power infrastructure.
While American fossil fuels have largely filled the void left by Russian gas, Europe has simultaneously ramped up its investment in renewable energy infrastructure.
Woods explicitly called for the corporate sustainability directive to be “reversed and repealed.”
He further criticized, stating, “European policymakers have erred, and rather than rectifying their own missteps, they are attempting to pull every American company operating there into the same predicament.”
Major oil companies, including Exxon, have faced lawsuits in various courts across Europe and beyond, concerning the environmental impact of their primary business: selling oil, which releases climate-damaging greenhouse gas emissions when burned.
Historically, Europe’s industrialized nations have been significant polluters. Consequently, EU lawmakers are facing increasing public demand to transition their economies away from coal, oil, and gas. These ‘net-zero’ regulations, designed to cut emissions, represent a challenge for oil and gas companies globally, especially American firms that are major suppliers to Europe.
During a recent visit to prominent European cities, Trump administration officials dismissed these environmental laws as mere ‘climate ideology’ while simultaneously working to secure new deals for American oil and gas exports. European officials had previously committed to purchasing an extra $750 billion in U.S. fossil fuels over the next three years of President Trump’s term under a recent trade agreement. However, many experts deem this pledge impractical, as it would necessitate a threefold increase in fossil fuel trade.
The United States currently holds the distinction of being both the world’s largest exporter of liquefied natural gas and its largest oil producer.