addressing the risks of climate change

February 15, 2007

Addressing the risk of climate change while providing more energy to improve global living standards is an important issue facing our world today. In this third op-ed in our climate series, we share our views on policy considerations.

Climate remains an extraordinarily complex area of scientific study. But the risks to society and ecosystems from climate change could prove to be significant — so despite the areas of uncertainty that do exist, it is prudent to develop and implement strategies that address the risks.

At the same time, global energy needs are rising, with increasing prosperity in the developing world the main driver of greater energy demand (and consequently rising CO2 emissions) over the coming decades.

A global approach is needed that recognizes energy’s importance to the world’s economies, as well as the need for developing countries to weigh emissions control against energy-intensive economic development, which lowers poverty and improves public health.

Policymakers can work today to reduce the risks of climate change by seeking to:

Promote energy efficiency

• Ensure wider deployment of existing emissions-reducing technologies
• Support research and development of new technologies that can dramatically lower emissions while ensuring energy availability
• Maintain support for climate research, to inform policy and the pace of response

But the choice of policy tools will be important. Each should be assessed for their likely effectiveness, scale and cost, as well as their implications for economic growth and quality of life. In our view, effective policies will be those which:

Promote global participation

• Ensure a uniform/predictable cost of reducing carbon emissions
• Maximize the use of markets, to aid rapid adoption of successful initiatives
• Maximize transparency
• Minimize complexity and administrative costs
• Provide flexibility to adjust to ongoing understanding of the economic impact and evolving climate science

At ExxonMobil, we are taking action — reducing energy use at our facilities; deploying energy-efficient technologies across our global operations; working with partners to improve our customers' fuel efficiency; and investing in research to foster development of global energy technologies with significantly reduced greenhouse gas emissions. Addressing climate risks is an important challenge. A thoughtful and considered approach is needed if today’s policies are to effectively deliver benefits.