Exxon Mobil’s CEO is urging European lawmakers to ditch a new sustainability law. He’s openly stated that he views these regulations as a ‘very misguided effort to kill oil and gas’ rather than a genuine attempt to tackle climate change.
These remarks from CEO Darren Woods, made during a recent interview, closely follow a period where U.S. officials also criticized the European Union’s ambitious policies to rapidly cut greenhouse gas emissions. This pushback comes even as Europe has endured one of its hottest summers ever, prompting governments across the continent to implement measures protecting their citizens and economies from the escalating risks of extreme weather, worsened by the combustion of fossil fuels like coal, oil, and gas.
Woods revealed he’s been in discussions with both Trump administration officials and European legislators regarding the Corporate Sustainability Due Diligence Directive. This regulation mandates that large corporations operating within the 27-member economic bloc must identify and mitigate negative environmental and human rights impacts throughout their global supply chains. Although adopted in 2024 after extensive debate, the implementation of these rules has been postponed and is now slated to begin for companies in 2028.
According to Woods, Exxon, America’s largest oil and gas company, views this directive as a ‘really significant impediment’ to maintaining successful operations in Europe.
Under these new European requirements, businesses must devise strategies to curb their greenhouse gas emissions, aligning with the Paris Agreement’s objective of limiting global temperature increases to manageable levels. This directive complements the European Union’s overarching legislation to achieve climate neutrality by the middle of the century.
To achieve its 2050 climate goals, the European Union has already enacted legally binding pledges for shorter-term emissions reductions. The bloc aims for a 55% reduction in emissions by 2030, relative to 1990 levels. Discussions are currently underway to determine the emissions-reduction targets for 2035.
Just recently, European Union commissioners proposed cutting emissions by 66.3% to 72.5% by 2035, again compared to 1990 levels. However, member states are still divided on the severity of these cuts. It’s uncertain if they’ll resolve these disagreements in time to declare their 2035 targets before the global climate summit in Belem, Brazil, this November.
The automotive industry is also exerting pressure on the EU. Major carmakers like BMW and Volkswagen are pushing to reverse a planned ban on internal combustion engine vehicles by 2035, citing difficulties competing with Chinese rivals and adapting to tariffs imposed by President Trump. In response, lawmakers have offered car manufacturers greater flexibility in meeting emission reduction targets, acknowledging concerns that stricter goals were harming their competitive edge.
Requests for comment from the office of Wopke Hoekstra, the European Union’s climate commissioner, went unanswered.
A widespread 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 investing in renewable energy, such as wind and solar, offers greater energy independence, reducing reliance on other nations for power—a crucial lesson learned following Russia’s invasion of Ukraine, which had been a primary supplier of gas for European power plants.
While American fossil fuels have largely filled the void left by Russian gas, Europe has also significantly ramped up its development of renewable energy infrastructure.
Woods was unequivocal in his demand: he wants the corporate sustainability directive ‘reversed and repealed.’
He criticized European policymakers, stating, ‘They’ve gotten it wrong,’ and accused them of ‘trying to drag every American company that’s doing business over there into that mess’ instead of rectifying their own errors.
It’s worth noting that several prominent oil companies have faced lawsuits in European and international courts regarding the climate impact of their primary business: selling oil, which releases planet-warming greenhouse gas emissions when burned as fuel.
As some of history’s largest polluters, Europe’s industrialized nations face increasing public pressure to transition their economies away from coal, oil, and gas. These ambitious net-zero regulations, designed to cut emissions, present a significant challenge to oil and gas companies globally, especially American firms, which are major suppliers to the European market.
During a recent tour of prominent European cities, Trump administration officials lambasted these laws as mere ‘climate ideology’ while simultaneously attempting to secure more contracts for American oil and gas exports. European officials, as part of a new trade agreement with the U.S., reportedly committed to purchasing an extra $750 billion in American fossil fuels over the next three years of President Trump’s term. However, many analysts quickly pointed out that this pledge is likely impractical, as it would necessitate a threefold increase in fossil fuel trade.
The United States currently holds the top position globally as both the largest producer of oil and the leading exporter of liquefied natural gas.
Correction: An earlier version of this article mistakenly referred to the E.U. climate commissioner as Jopke Hoekstra; his correct given name is Wopke.