ExxonMobil went to Brussels: the oil giant is challenging EU laws on CO₂ storage.
ExxonMobil has launched confidential arbitration proceedings against the European Union, the Financial Times reported, citing a memorandum from the European Commission. The reason was the climate regulations of the European Union.
ExxonMobil is challenging the provisions of the EU's net zero emissions law. These rules require major oil and gas players to participate in the development of CO₂ storage capacity by 2030. The company considers such demands unreasonable.
The company said in a statement that oil and gas companies are effectively forced to provide storage for CO₂, even though the market for carbon capture and transport has yet to mature. According to ExxonMobil, this causes the industry to face unrealistic deadlines and increase energy costs for all Europeans.
The dispute comes amid general tensions between Brussels and the energy sector over climate. Last month, the European Union delayed enforcement of rules to limit methane emissions from oil and gas imports after pressure from industry groups and several governments, including the US.
Oil and capital.