Exxon Mobil’s CEO is actively lobbying European legislators to revoke a recently enacted sustainability law. He describes this regulation as a ‘very misguided effort’ designed to eliminate the oil and gas industry under the guise of tackling climate change.
These statements from CEO Darren Woods, made during an interview this week, closely follow strong disapproval from U.S. officials concerning the European Union’s aggressive strategies to cut greenhouse gas emissions. Europe has endured one of its hottest summers in history, prompting governments across the continent to implement measures protecting their citizens and economies from severe weather hazards, which are increasingly worsened by the combustion of fossil fuels like coal, oil, and gas.
Woods confirmed discussions with both Trump administration officials and European legislators regarding a specific directive. This rule mandates that large corporations operating within the 27-member European economic bloc must pinpoint and mitigate negative environmental and human rights impacts throughout their global supply chains. Officially named the Corporate Sustainability Due Diligence Directive, it was passed in 2024 after extensive debate. Although its implementation schedule has been postponed, it is set to become effective for businesses starting in 2028.
“We view this as a substantial obstacle to maintaining our operations in Europe and operating a successful business there,” Woods stated. Exxon, notably, stands as the largest oil and gas company in the United States.
Any company conducting business in Europe will be required to develop a strategy for reducing their greenhouse gas emissions, aligning with the Paris Agreement’s objective of capping global temperature increases at manageable levels. This specific regulation is part of the European Union’s larger legislative framework aimed at achieving climate neutrality by mid-century.
To achieve this ambitious 2050 goal, the European Union has also made legally binding commitments for near-term emissions reductions. The bloc has committed to cutting emissions by 55 percent by 2030, relative to 1990 levels, and is currently engaged in discussions to determine its emissions-reduction targets for 2035.
Energy ministers from the European Union were slated to meet on Thursday to deliberate these proposed emissions cuts for 2035 and 2040. Disagreements persist regarding the strictness of these reductions, casting doubt on whether a consensus can be reached to announce the 2035 targets before the upcoming global climate summit in November, set to take place in Belem, Brazil.
A request for comment from the office of Wopke Hoekstra, the European Union’s climate commissioner, received no immediate response.
Scientific consensus overwhelmingly confirms that rising global temperatures are exacerbating extreme weather events like droughts, storms, and wildfires, leading to trillions of dollars in economic damages over time.
European legislators contend that investing in renewable energy sources, such as wind and solar, grants them crucial energy independence, reducing their reliance on other countries for power. This self-sufficiency has gained significant importance since Russia’s invasion of Ukraine, as Russia was previously a primary supplier of natural gas for European power facilities.
While American fossil fuels have largely replaced Russian gas, Europe has also significantly ramped up its development of renewable energy infrastructure.
Woods explicitly stated his desire for the corporate sustainability directive to be “reversed and repealed.”
He asserted that “European policymakers have fundamentally erred, and rather than rectifying the chaotic situation they’ve caused, they are attempting to pull every American company operating there into their disarray.”
Numerous prominent oil companies are facing lawsuits in Europe and other regions concerning the environmental impact of their primary business: selling oil. The combustion of this fuel releases greenhouse gas emissions, dangerously contributing to global warming.
Historically, industrialized European nations have been among the largest polluters, and EU lawmakers are facing increasing public demand to transition their economies away from burning coal, oil, and gas. These net-zero regulations, designed to cut emissions, represent a significant challenge for oil and gas companies globally, especially American firms, which are major suppliers to Europe.
During a recent tour of prominent European cities, Trump administration officials publicly condemned these laws as mere ‘climate ideology,’ while simultaneously working to secure contracts for increased sales of American oil and gas. As part of a new trade agreement with the United States, European officials 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 quickly pointed out that this ambitious pledge is likely impractical, as it would necessitate a threefold increase in fossil fuel trade.
Presently, the United States holds the top position globally as both the largest exporter of liquefied natural gas and the largest producer of oil.