US oil and gas lobby backs carbon-pricing scheme
A US lobby group representing the interests of the oil and gas sector on March 25 urged lawmakers to develop sensible policies for carbon prices.
The American Petroleum Institute, which represents the interests of oil companies such as ExxonMobil and Chevron, endorsed a carbon-price policy as a way to mitigate the risks of climate change.
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“As our industry accelerates efforts to advance groundbreaking technologies, reduce emissions and drive transparent and consistent climate reporting, we urge lawmakers to support market-based policies that foster innovation, including carbon pricing,” API President Mike Sommers stated.
The World Bank identified two main types of carbon pricing during a forum in June: an emissions trading system, where industries can sell any extra allowances under an emissions cap, and tax rates on greenhouse gas emissions. Rather than lay out specific criteria, the API said it was advocating simply for sensible policies.
“The goal of a carbon price policy should be to achieve GHG emissions reductions at the least cost to society, to meet the dual challenge of continued US economic growth and global competitiveness while addressing the risks of climate change,” it outlined in a 13-page report highlighting its stance on climate initiatives.
API’s statement followed a meeting March 23 between top oil and gas executives and climate officials in the White House. National Climate Advisor Gina McCarthy at the meeting asked for their ideas on how to address climate change while at the same time supporting the economy.
Along with many in the oil and gas sector, the API has softened its stance on climate policy, adding it advocated for congressional funding to support research into low-carbon technologies ranging from carbon storage to hydrogen fuel development.