Exxon Mobil’s chief executive is actively lobbying European lawmakers to abandon a key sustainability law, asserting that it represents a “very misguided effort to kill oil and gas as a way of addressing climate change.”
These remarks from CEO Darren Woods, made in a recent interview, come shortly after U.S. officials from the Trump administration sharply criticized the European Union’s aggressive policies to curb planet-warming greenhouse gas emissions. Europe has recently endured one of its hottest summers, prompting governments to implement measures to safeguard their populations and economies from the escalating dangers of extreme weather, which are intensified by the burning of fossil fuels like coal, oil, and gas.
Woods revealed that he has engaged in discussions with members of the Trump administration and European legislators regarding the Corporate Sustainability Due Diligence Directive. This regulation mandates that large companies operating within the 27-nation economic bloc identify and mitigate adverse environmental and human rights impacts throughout their global supply chains. Although adopted in 2024 after extensive debate, the directive’s implementation timeline has been delayed, with enforcement for companies now scheduled to begin in 2028.
“We view this as a significant barrier to maintaining successful operations and business in Europe,” Woods stated. Exxon Mobil stands as the largest oil and gas company in the United States.
European companies will be required to develop strategies to align their greenhouse gas emissions reductions with the Paris Agreement’s objective of limiting global temperature rise to manageable levels. This directive aligns with the European Union’s broader legal framework to achieve climate neutrality by the middle of the century.
To achieve its 2050 climate goal, the European Union has also established legally binding short-term commitments for emissions cuts. The bloc aims to reduce emissions by 55 percent by 2030, relative to 1990 levels, and is currently deliberating on its emissions reduction targets for 2035.
Energy ministers from the European Union were slated to meet recently to discuss these proposed 2035 and 2040 emissions reductions. Disagreements persist over the stringency of these cuts, and it remains uncertain whether a consensus will be reached in time to announce the 2035 targets before this year’s global climate summit, scheduled for November in Belem, Brazil.
The office of the European Union’s climate commissioner, Wopke Hoekstra, did not provide an immediate response to a request for comment.
There is a broad scientific consensus that rising global temperatures are exacerbating extreme weather phenomena such as droughts, severe storms, and wildfires, leading to trillions of dollars in economic damages.
European lawmakers advocate for renewable energy sources, like wind and solar, as a means to achieve energy independence, reducing reliance on other nations for power. This objective has gained significant urgency since Russia’s invasion of Ukraine, given Russia’s historical role as a primary gas supplier for European power plants.
While American fossil fuels have largely replaced Russian gas supplies, Europe has also significantly accelerated its investment in renewable energy infrastructure.
Mr. Woods explicitly called for the “reversal and repeal” of the corporate sustainability directive.
“European policymakers have made a mistake,” he declared, “and instead of rectifying the chaos they’ve created, they’re attempting to drag every American company operating there into their problems.”
Several major oil companies are facing lawsuits in European and other courts regarding the climate impact of their core business: the sale of oil. The burning of oil as fuel releases greenhouse gas emissions that are dangerously warming the planet.
Europe’s industrialized nations are historically significant polluters, and their lawmakers are under increasing public pressure to transition their economies away from burning coal, oil, and gas. These net-zero regulations, designed to cut emissions, pose a substantial challenge to oil and gas companies globally, especially American firms, which supply the largest portion of these fuels to the continent.
During a recent tour of key European cities, Trump administration officials criticized these climate laws as products of “climate ideology,” while simultaneously seeking to secure contracts for increased sales of American oil and gas. Under the latest trade agreement with the United States, European officials reportedly committed to purchasing an additional $750 billion in oil and gas from the U.S. over the next three years of President Trump’s term. However, many analysts question the feasibility of this pledge, noting it would necessitate a threefold increase in fossil fuel trade.
Currently, the United States is both the world’s largest exporter of liquefied natural gas and its largest oil producer.