KEY POINTS
- ExxonMobil’s Global Outlook report blasts EU’s “high-cost, high-regulation” climate policies.
- Company says measures have weakened industry competitiveness and raised energy costs.
- Public support for green technologies is faltering amid higher living costs and political pushback.
ExxonMobil has directly attacked Europe’s decarbonisation strategy, claiming that the EU‘s excessive reliance on expensive climate mandates and regulations has hurt competitiveness in its industrial core.
According to the U.S. oil major’s Global Outlook report, which was published on Thursday, the EU’s “high-regulation, high-cost” emissions reduction model has increased energy prices, reduced heavy industry output, and left the transportation sector unable to adjust.
The criticism comes as the bloc struggles to speed up its green transition without destroying manufacturing and displacing workers to cheaper markets.
Citing the Draghi Report on EU competitiveness, ExxonMobil said Europe’s climate strategy has weakened the region’s economic resilience while eroding public support for the very technologies meant to deliver its net-zero ambitions.
Industry Squeeze Fuels Political Risk
ExxonMobil cautioned that political skepticism and economic challenges are both undermining Europe’s decarbonisation plan. The report highlighted how rising living costs and energy insecurity have made it more difficult to sell climate policies, stating that “public support for lower-emissions technology needed to reach EU climate goals is wavering.”
In contrast to more incentive-driven strategies in the U.S. and some parts of Asia, the company’s acerbic tone reflects growing dissatisfaction among international oil majors with what they perceive to be fragmented, punitive frameworks in Europe.
The EU’s reliance on carbon pricing and regulatory mandates has caused industries ranging from steel to aviation to warn of lost competitiveness, despite its pledges to cut emissions further and its billion-dollar investments in renewables and hydrogen.
According to ExxonMobil, the discussion supports a larger thesis: energy transition policies must strike a balance between affordability, energy security, and climate goals in order to avoid political backlash and stalled progress.
Europe, which formerly positioned itself as the world leader in climate action, is currently having to reevaluate its approach. ExxonMobil’s criticism reveals a growing conflict between decarbonization goals and economic realities as elections are approaching throughout the bloc and populist parties are gaining ground.
