Exxon Sees a World With Less Carbon but Higher-Cost Emissions
Exxon Mobil on 25 January said efficiencies and increased use of renewable fuels will cut by half the carbon intensity of the world’s economy by 2040 but climate policies will increase the cost of greenhouse gas emissions, according to the company’s latest long-term outlook.
Exxon and others in the oil industry have been under increasing pressure from shareholders to detail the resilience of their business model to climate change after a global climate agreement reached in Paris in December set the world on a course to transform its fossil-fuel driven economy.
Because of efforts to reduce greenhouse gases and efficiency gains, Exxon sees energy-related carbon dioxide emissions peaking around 2030 before starting to decline, while emissions in developed countries are seen falling by about 20 percent from 2014 to 2040, it said.
“The climate accord reached at the recent COP 21 conference in Paris set many new goals, and, while many related policies are still emerging, the outlook continues to anticipate that such policies will increase the cost of carbon dioxide emissions over time,” said William Colton, vice president of Exxon Mobil Corporate Strategic Planning.