Nov 11 (Reuters) – ExxonMobil has filed a confidential legal challenge to the European Union’s carbon capture rules, the Financial Times reported on Wednesday, citing a memo from the European Commission.
Here are a few details
• The oil major has initiated arbitration proceedings against the EU over provisions in the bloc’s Net-Zero Industry Act that require major oil and gas companies to help develop carbon dioxide storage capacity by 2030, the report said
• The European Commission informed the Council of the European Union’s trade policy committee of the notice of arbitration last month and is preparing a response, it said
• “Oil and gas companies are now compelled to provide CO₂ storage capacity despite the absence of a viable market for carbon capture and transportation, saddling industry with unrealistic timelines and increasing energy costs for all Europeans,” Exxon said in a statement, referring to the EU rules
• The European Commission did not immediately respond to a Reuters request for comment
• The dispute comes amid broader tensions between Brussels and the energy industry over climate regulations
• Last month, the EU delayed implementation of methane-emissions rules for oil and gas imports after pressure from industry groups and governments including the US
• Exxon has also been stepping up attacks against a European Union corporate sustainability law and has taken its concerns directly to US President Donald Trump, warning that the regulation will lead to more businesses leaving Europe
(Reporting by Katha Kalia in Bengaluru; Editing by Sahal Muhammed)
