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Exxon pledges net-zero carbon emissions from operations by 2050


The Exxon Mobil refinery at Baytown in Texas.

Jessica Rinaldi | Reuters

Exxon MobilTuesday saw the pledge by the organization to eliminate its net carbon emission from worldwide operations. This is in comparison to its competitors who have reduced their carbon footprint.

Exxon’s 2050 plan, first mulled last yearThis covers both the oil and gas production, as well power consumed by those operations, so-called scopes 1 and 2. The company did not make any commitment to reduce emissions by consumers who use those products.

Exxon chief executive officer Darren Woods stated in a statement that “we are creating comprehensive roadmaps for greenhouse gas emission reductions from our assets around the globe,”

He said that Exxon was “working together with our partners in order to achieve similar emission reduction results” at properties in which Exxon does not have control.

Last year, Exxon’s shareholders fired three directors. A hedge fund pressed the oil company to improve its return and be better prepared for a future low-carbon world.

The U.S. has been slower than many European oil producers in accepting the Paris climate accord goals to reduce global warming-related emissions. BP Royal Dutch Shell have also pledged to cut emissions from fuels and products sold to consumers, so-called scope 3 targets.

Exxon is now a step ahead U.S. competitor with its new pledge ChevronThis is the which last October pledged to bring emissions from its upstream operations to zero by 2050 and lower the intensity of emissions elsewhere.

Exxon stated in November it was increasing spending to reduce carbon emissions. It will spend $15 billion on these projects through 2027. This includes the development of technology that is currently not commercially viable, such as carbon capture and storage and hydrogen power, and biofuels made from algae.

It was December pledged to achieve net-zero greenhouse gas emissions in its operations in the U.S. Permian Basin by 2030.

European oil producers are leading the transition to renewable energy. They plan to reduce their oil production slowly and replace it with solar and wind power. Exxon, Chevron and others plan to boost oil production over the coming decade. These plans are supported by projections that world oil demand will grow.