addressing the risks of climate change: ExxonMobil's views and actions

There is increasing evidence that the earth's climate has warmed on average about 0.7 C in the last century. Many global ecosystems, especially the polar areas, are showing signs of warming. CO₂ emissions have increased during this same time period — and emissions from fossil fuels and land use changes are one source of these emissions.

Climate remains today an extraordinarily complex area of scientific study. The risks to society and ecosystems from increases in CO₂ emissions could prove to be significant, so it is prudent to develop and implement strategies that address the risks, keeping in mind the central importance of energy to the economies of the world.

This includes putting policies in place that start us on a path to reduce emissions, while understanding the context of managing carbon emissions among other important world priorities, such as economic development, poverty eradication and public health.

While this long-term objective is pursued, near-term objectives should include supporting climate research while pacing policy responses; promoting energy efficiency; deploying existing technologies that reduce greenhouse gas emissions; and supporting research and development of new, low-GHG technologies.

Policymakers are considering a variety of proposed regulatory options to mitigate GHG emissions. In our view, assessing these options requires an understanding of their likely effectiveness, scale and cost, as well as their implications for economic growth and quality of life. Within ExxonMobil, we analyze and compare the various policy options by evaluating the degree to which they:

• Ensure any cost of carbon is uniform across the economy and predictable
• Let market prices drive the selection of solutions
• Promote global participation
  - Consider priorities of developing world
  - Recognize impacts of imbalances among national policies
• Minimize complexity to reduce administrative costs
• Maximize transparency to companies and consumers
• Adjust in the future to developments in climate science and the economic impacts of climate policies

ExxonMobil scientists have undertaken climate change research and related policy analysis for more than 25 years and their work has produced more than 40 papers in peer-reviewed literature. In addition, our scientists participate in the United Nations Intergovernmental Panel on Climate Change (IPCC) and numerous related scientific bodies.

Over the years the company has supported major projects at such institutions as the Massachusetts Institute of Technology, Stanford University, the Australian Bureau of Agricultural Resource Economics, Batelle Pacific Northwest Laboratory, Princeton University, Charles River Associates, the Hadley Centre for Climate Prediction, the International Energy Agency Greenhouse Gas R & D Programme, Yale University, The University of Texas, Carnegie Mellon University, and the Lamont Doherty Earth Observatory at Columbia University.

Similarly, we support an array of public policy organizations that research and promote discussion on climate change and other domestic and international issues, including the Brookings Institution, the American Enterprise Institute, the Council on Foreign Relations and the Center for Strategic and International Studies. We publish our support of 501(c)(3) organizations on our Web site — and update the list once per year

For our part, ExxonMobil is taking action to mitigate greenhouse gas emissions today and to support the development of advanced energy technologies with the potential to significantly reduce future emissions. These include:

• Through efficiency actions taken in 2006 and 2007, we reduced GHG emissions by about 5 million metric tons in 2007, equivalent to removing about one million cars from roads in the United States. Learn more
• Working with Manufacturers of Automobiles and Commercial Industrial Engines on research and development programs that could yield fuel economy improvements in internal combustion engines by as much as 30 percent, with lower corresponding emissions. Learn more
• Supporting the Global Climate and Energy Project (GCEP) at Stanford University with a charge to accelerate the development of commercially viable energy technologies that can lower greenhouse gas emissions on a global scale. GCEP’s focus includes hydrogen production, storage and use; biomass and solar energy; carbon dioxide capture and storage; and advanced transportation and coal technologies. ExxonMobil helped launch the $225 million project in 2002. Learn more
• Partnering with the European Commission to study Carbon Capture and Storage (CCS) in the CO2ReMoVe program, a ground-breaking research initiative to establish scientific monitoring systems and determine the reliability of geological carbon dioxide storage. Our support for CO2ReMoVe, builds on more than three decades of involvement in the development and utilization of CCS-related technologies. Learn more
• Developed new film technologies that are expected to significantly enhance the power, safety and reliability of lithium-ion batteries, thereby helping speed the adoption of these smaller and lighter batteries into the next wave of lower-emission vehicles. These new film technologies for lithium-ion batteries have the potential to improve the energy efficiency and affordability of next generation hybrid and electric vehicles. Learn more
• Conducting research and development for an on-vehicle hydrogen production system for use in a fuel-cell-powered forklift. By using liquid hydrocarbon fuels to produce hydrogen, this system is expected to be significantly more fuel efficient than today’s internal combustion engines (up to 80 percent). It also promises reduced emissions (up to 45 percent less CO₂) without the need for a dedicated hydrogen distribution infrastructure. Learn more