The chief executive of Exxon Mobil is aggressively lobbying European lawmakers to scrap a new sustainability law, branding it a “very misguided effort to kill oil and gas as a way of addressing climate change.”
These strong statements from CEO Darren Woods, made in a recent interview, come hot on the heels of similar criticisms from U.S. officials of the Trump administration. They too have condemned the European Union’s ambitious policies aimed at rapidly reducing planet-warming greenhouse gas emissions. This pushback emerges as Europe grapples with one of its hottest summers on record, compelling governments to implement measures protecting their citizens and economies from the escalating threats of extreme weather, fueled by the burning of fossil fuels like coal, oil, and gas.
Mr. Woods revealed that he has engaged with both Trump administration officials and European lawmakers concerning the Corporate Sustainability Due Diligence Directive. This regulation, passed in 2024 after years of deliberation, mandates large corporations operating within the 27-nation economic bloc to identify and mitigate adverse environmental and human rights impacts throughout their global supply chains. Although its implementation timelines have seen delays, it is currently slated to take effect for companies starting in 2028.
“We see this as a really significant impediment to continuing to have operations in Europe and to be a successful business there,” Mr. Woods stated. Exxon Mobil stands as the largest U.S. oil and gas company.
Under these new European regulations, companies must develop strategies to align their greenhouse gas emissions reductions with the Paris Agreement’s goal of limiting global temperature increases to manageable levels. This directive is part of the European Union’s broader legal commitment to achieve net-zero climate emissions by the middle of the century.
To achieve its 2050 net-zero ambition, the EU has also established legally binding short-term emission reduction targets, pledging a 55 percent cut by 2030 compared to 1990 levels. The bloc is currently engaged in discussions to determine its emissions-reduction targets for 2035.
On Thursday, European Union energy ministers convened to discuss these proposed 2035 and 2040 emissions cuts. Disagreements persist over the stringency of these reductions, casting doubt on whether a consensus can be reached in time to announce their 2035 targets before this year’s global climate summit in Belem, Brazil, scheduled for November.
Jopke Hoekstra, the European Union’s climate commissioner, has yet to respond to requests for comment.
Scientific consensus overwhelmingly affirms that rising global temperatures are exacerbating extreme weather events—such as droughts, storms, and wildfires—leading to trillions of dollars in economic damages over time.
European industrialized nations, historically major polluters, face increasing pressure from their citizens to transition their economies away from fossil fuels. These net-zero regulations pose a significant challenge to oil and gas companies globally, especially American ones, given their substantial supply to the continent.
During a recent tour of key European cities, Trump administration officials criticized these climate laws as manifestations of “climate ideology.” Their tour aimed to secure new contracts for increased sales of American oil and gas. Despite a recent trade deal where European officials reportedly pledged to purchase an additional $750 billion in U.e.s. oil and gas over the next three years of President Trump’s term, many analysts deem this commitment impractical, as it would necessitate a threefold increase in fossil fuel trade.
The United States currently holds the title of the world’s largest exporter of liquefied natural gas and is also the top oil producer.