ExxonMobil Warns It May Consider Prioritizing Investment Elsewhere If EU Doesn't Reduce Red Tape

Oil giant ExxonMobil has warned that it may prioritize investment in other parts of the world unless the European Union reduces environmental red tape, according to media reports.

Karen McKee, president of ExxonMobil's product solutions division, told the media that ExxonMobil has set aside $20 billion for decarbonization projects between 2022 and 2027, but that the company may prioritize the rest of the world as the regulatory burdens it faces in Europe become more frustrating.

McKee said that while ExxonMobil has studied many EU projects, very little money has been invested.

She says: "When we make investments, we consider a long time horizon. I would say that recent developments in Europe do not inspire confidence in long-term, predictable policies."

McKee says bluntly, "What we're experiencing is the de-industrialization of the European economy, and we're concerned about that." She added that the EU's climate-related regulations have had a very negative impact on businesses, leading to slow and convoluted processes for approvals and access to finance.

McKee's comments come as more than 70 industry executives met in Antwerp, Belgium, on Tuesday with the aim of pressuring the EU to reconsider its industrial policy and support businesses that are having trouble implementing EU climate regulations.

European leaders, including French President Emmanuel Macron, have voiced concerns to the European Commission about whether environmental regulations are too harsh.

European Commission President von der Leyen, whose term ends at the end of this year, has formally announced she will seek to run for a second term and has been endorsed by her party, Germany's CDU.

Some analysts say that if successful in her re-election bid, von der Leyen will shift from the focus on the Green Deal during her first term to security and defense, as well as immigration and competition.

Martin Porter, executive chairman of the Cambridge Institute for Sustainability Leadership (CISL), said the business community must show new thinking rather than complaining about red tape.

Porter said, "We must have a two-pronged approach to winning the economic race while addressing climate change and other sustainability issues."