Exxon has threatened to quit the European Union, taking billions of dollars in climate investment with it, unless Brussels makes it simpler to spend those billions on transition-related projects.
According to the Financial Times, the company stated on Tuesday that there was much too much red tape in the EU and that it took too long to get a project started, prompting the supermajor to reconsider spending its $20 billion in decarbonisation expenditures for 2022–2027 elsewhere.
“When we make investments, we’ve got very long time horizons in mind. I would say that recent developments in Europe have not instilled confidence in long-term, predictable policies,” Karen McKee, president of Exxon Product Solutions, told the FT.
“What we’re experiencing is the deindustrialisation of the European economy and we’re concerned,” McKee also said.
The European Union’s leadership has often vowed to aid transition projects, but it appears that it has been hesitant to deliver on that commitment.
According to Exxon—and many other corporations participating in the transition—getting a project off the ground in the EU is plagued with bureaucratic impediments and “slow and torturous” permission and funding procedures, as Exxon’s McKee describes.
The EU’s Green Deal plan includes a “predictable and simplified regulatory environment” as one of its four pillars, however, based on corporate reactions, this has yet to be put into practice.
The EU’s second pillar is faster access to funds, but it is also taking a long time to materialise.
These implementation delays have spurred business executives to gather in Belgium today to encourage EU leaders to move beyond words and into action.
There is growing fear that the regulatory load imposed on firms is frightening them away and driving their investments elsewhere.
Some European leaders, including France’s Emmanuel Macron and Belgium’s Alexander de Croo, have blamed red tape for the farmers’ demonstrations.
Source: Allnews.nghttp://allnews.ng