Exxon will meet its greenhouse-gas emission reduction target for 2025 four years earlier than planned as the company ramps up investment in low-carbon energy.
The supermajor said it had allocated $15 billion in investments in low-emission initiatives, and this will help it meet its emission reduction target by the end of this year.
“As a result of our progress, we’re working on even more aggressive reduction plans that are consistent with our support for the goals of the Paris Agreement, the U.S. and European Union’s Global Methane Pledge, as well as the U.S. Methane Emissions Reduction Action Plan announced last week,” Exxon’s chief executive Darren Woods said in a news release.
Exxon, normally slow in embracing environmental commitments, has apparently decided to go all-in now, with a focus on carbon capture, biofuels, and hydrogen.
In carbon capture, Exxon boasts the most emissions caught on a global level. The company says the technology is critical for achieving the Paris Agreement targets and turning the world into a net-zero economy by 2050.
Biofuels are another priority area for the supermajor as they will be as instrumental in reducing emissions from the transport sector as carbon capture and storage will be for heavy industries.
In hydrogen, Exxon said it was already producing 1.5 million tons of it annually and working to lower the cost of production.
The company, however, noted that government support would be crucial for advancing the energy transition agenda.
“To deploy the technology at the pace and scale required to support society’s ambition of a net-zero future, government policies will need to provide direct investment and incentives similar to those available to other lower-carbon technologies,” CEO Woods said.
“No single technology can enable society to achieve its lower-carbon ambitions,” he added. “Predictable, stable, cost-effective policies are necessary to incentivize the development and scalability of a wide range of lower-carbon technologies across the economy.”
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com