US oil lobbying group mulls throwing weight behind carbon pricing

AP 20211833794064

The American Petroleum Institute is contemplating endorsement of placing a value on carbon emissions – a move that will herald a serious shift after the API lengthy resisted obligatory authorities local weather insurance policies, a supply tells Reuters.

The major United States oil {industry} foyer group, the American Petroleum Institute (API), is contemplating throwing its weight behind placing a value on carbon emissions – a move that will mark a serious shift after years of the API resisting obligatory authorities local weather insurance policies, a supply aware of the decision-making mentioned.

The API, which incorporates a lot of the world’s largest oil corporations, is weighing whether or not to endorse carbon pricing “among other policy solutions to reduce emissions and reach the ambitions of the Paris Agreement”, the supply mentioned, confirming a report in regards to the coverage shift by The Wall Street Journal.

The API has been compelled to confront its resistance to regulatory motion on local weather change. Just a few of its European members left the foyer group as a consequence of disagreements over its local weather insurance policies and help for relieving drilling laws, and the administration of US President Joe Biden is pursuing a coverage agenda that will shift the US off of fossil fuels.

A draft assertion of the coverage shift reviewed by The Wall Street Journal mentioned the group doesn’t endorse a particular carbon pricing software reminiscent of a tax on carbon emissions or an emissions buying and selling scheme. The supply mentioned, nevertheless, that the group’s State of American Energy report launched in January was supportive of a market-based carbon pricing coverage.

The API didn’t touch upon whether or not or when the group would formally endorse a value on carbon, however mentioned it has been working for nearly a yr on an industry-wide response to local weather change.

“Our efforts are focused on supporting a new US contribution to the global Paris Agreement,” mentioned API spokeswoman Megan Bloomgren.

Within API, there was a widening rift between Europe’s high power corporations, which over the previous yr accelerated plans to chop emissions and construct giant renewable power companies, and their US rivals ExxonMobil Corp and Chevron Corp, which have largely resisted rising investor strain to diversify.

Other main {industry} teams just like the Business Roundtable, of which Chevron is a member, during the last yr have endorsed market-based carbon pricing.