Exxon CEO stresses need for trade action against EU rules

Darren Woods argues EU directives threaten US competitiveness and energy interests.

Exxon CEO calls for action against EU climate regulations

Darren Woods, CEO of ExxonMobil, insists that the Trump administration must leverage trade negotiations with the European Union to combat stringent new climate and human rights regulations. He warned that these regulations could impose substantial penalties on US companies and hinder their global competitiveness, which contradicts the administration's efforts to reduce regulatory burdens. The EU's Corporate Sustainability Due Diligence Directive, set to take effect in 2027, will require compliance from companies concerning environmental and human rights standards, potentially affecting non-EU firms as well. While Trump and EU leaders announced a preliminary trade deal that includes tariffs and energy commitments, Woods highlighted concerns about increased bureaucratic challenges for US companies operating in Europe.

The push from ExxonMobil's leadership reflects a deeper conflict between US business interests and European regulatory frameworks. Woods’ call emphasizes fears that the EU's regulations may compromise American firms' ability to compete on a global scale. With momentum building against the new directive from both US and some EU companies, there is a growing tension between the need for sustainability and the pursuit of economic advantage. This situation illustrates the broader implications of international trade negotiations and the polarized views on climate responsibility versus economic growth.

Highlights

The ongoing trade discussions could redefine international regulatory standards for environmental practices.