Exxon Mobil, which has long been criticized by environmentalists and some investors and elected leaders for not doing enough to curb climate change, said Monday it would invest $ 3 billion over the next five years in energy projects that reduce emissions.
The company said the first area it would work on is capturing carbon dioxide emissions from industrial factories and storing the gas so that it doesn’t end up in the atmosphere, where it contributes to global warming. Many climate experts have said that such carbon capture and storage will be critical in the fight against climate change.
Exxon said it was setting up a new company called ExxonMobil Low Carbon Solutions and is working on 20 carbon capture projects around the world, including in Texas, the Netherlands, Singapore and Qatar.
The moves come because the Biden government has pledged to tighten fossil fuel industry regulations, raise fuel-saving standards for cars, and take other steps to reduce carbon dioxide and other greenhouse gas emissions. Some institutional investors and environmental groups are also pressuring Exxon and other companies to reduce emissions from their operations and the use of their products.
Exxon, in particular, has been a frequent target of such campaigns because, unlike European oil giants like BP and Royal Dutch Shell, it has not invested in renewable energy or set ambitious climate goals.
Exxon’s announcement came a few days after General Motors said it planned to stop selling petroleum-powered cars and trucks by 2035 and only sell zero-emission vehicles.