Exxon seeks US subsidies for carbon capture amid climate concerns

ExxonMobil has been actively lobbying for financial support for carbon capture and storage (CCS) technologies, spending $54 million since 2018. The company aims to convince lawmakers that CCS can mitigate the environmental impact of fossil fuel consumption, allowing continued oil production. Following the bipartisan infrastructure bill in November 2021, which allocated $12 billion for carbon management, Exxon has seen some success in its lobbying efforts. The company is now promoting the economic potential of CCS, estimating a $14 trillion market opportunity. Despite the push for CCS, experts express concerns about its effectiveness and the ethics of subsidizing a company that has historically contributed to climate change. Critics argue that funding should prioritize renewable energy solutions rather than supporting fossil fuel companies. Exxon’s strategy appears to focus on maintaining oil demand while promoting carbon capture as a viable solution. The company’s lobbying efforts have included drafting reports that suggest significant financial incentives are necessary for CCS deployment. This has led to bipartisan support for legislation aimed at enhancing carbon capture technologies. Exxon's approach indicates a belief that the transition to renewable energy will not significantly reduce oil demand, as evidenced by its continued investment in oil and gas projects. At recent climate talks, Exxon’s representatives reiterated their commitment to supplying fossil fuels while also pursuing decarbonization strategies. This dual approach raises questions about the sincerity of their climate commitments and the long-term implications for global climate goals.