Exxon files legal challenge to EU carbon capture law, FT reports

Detailed summary

Nov 11 (Reuters) - ExxonMobil has filed a confidential legal challenge to the European Union's carbon capture rules, the Financial Times reported on Wednesday, citing a memo from…

Nov 11 (Reuters) - ExxonMobil has filed a confidential legal challenge to the European Union's carbon capture rules, the Financial Times reported on Wednesday, citing a memo from the European Commission.

• The oil major has initiated arbitration proceedings against the EU over provisions in the bloc's Net-Zero Industry Act that require major oil and gas companies to help develop carbon dioxide storage capacity by 2030, the report said

• The European Commission informed the Council of the European Union's trade policy committee of the notice of arbitration last month and is preparing a response, it said

• "Oil and gas companies are now compelled to provide CO₂ storage capacity despite the absence of a viable market for carbon capture and transportation, saddling industry with unrealistic timelines and increasing energy costs for all Europeans," Exxon said in a statement, referring to the EU rules

• The European Commission did not immediately respond to a Reuters request for comment

• The dispute comes amid broader tensions between Brussels and the energy industry over climate regulations

• Last month, the EU delayed implementation of methane-emissions rules for oil and gas imports after pressure from industry groups and governments including the US

• Exxon has also been stepping up attacks against a European Union corporate sustainability law and has taken its concerns directly to US President Donald Trump, warning that the regulation will lead to more businesses leaving Europe

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