The American Petroleum Institute, the largest US oil industry lobby, is considering supporting carbon pricing to reduce emissions and achieve targets of the Paris Accord, Reuters reported, citing people familiar with the decision-making. This move came as a dramatic turn after the lobby group resisted government climate policies. This resistance also prompted some of its European members to leave after disagreements over climate policies.
Separately, the Wall Street Journal reported that the API’s draft statement of the policy amendments did not support a specific carbon pricing tool such as an emissions trading scheme or a carbon emissions duty. However, the sources said that the group would likely support a market-based carbon pricing policy.
In January, France’s energy giant Total decided to quit the group due to disagreements about climate-related policies. Meanwhile, BP, Shell, and Equinor said they were reviewing their memberships in the trade group. The withdrawal highlights the widening rift between European oil majors, which have been accelerating their energy transitions, and their US counterparts, such as Chevron and Exxon, which have resisted investors’ pressure to diversify.
