As policymakers develop mechanisms to meet the goals set in Paris, ExxonMobil encourages them to focus on reducing the greatest amount of emissions at the lowest cost to society. At the same time we urge them to recognize important shared humanitarian needs, including providing reliable and affordable energy to improve living standards.
As a global issue, climate change requires global solutions. Both developed and developing countries must now work together in crafting policies aimed at mitigating greenhouse gas emissions, while recognizing differing national priorities.
ExxonMobil believes that effective policies to address climate change will put a price on greenhouse gas emissions and will:
- Ensure a uniform and predictable cost of carbon across the economy;
- Let market principles drive solutions;
- Minimize regulatory complexity and administrative costs while maximizing transparency;
- Promote global participation; and
- Provide flexibility for future adjustments in response to scientific developments and the economic consequences of climate policies.
A revenue-neutral carbon tax is the best option to fulfill these key principles and could be a workable policy framework for countries around the world. It is the policy most likely to preserve the ability of every sector of society to find new efficiencies and develop effective technologies.
Public officials charged with addressing this challenge can learn valuable lessons from what has worked in the private sector. Our experience -- harnessing efficiency measures and developing beneficial technologies -- is illustrative: ExxonMobil has long taken action by reducing greenhouse gas emissions in our operations, providing products that help consumers reduce their emissions and supporting research into technology breakthroughs. The right incentives can help develop even more new technologies and innovative business models that hold the best chance of making significant progress in reducing emissions while enabling economic growth.
We encourage those departing Paris to embrace a principled approach to climate change risk. Such an approach holds great promise for ensuring that effective action will be taken to meet this global challenge.