ExxonMobil warned bureaucracy could deter it from investing in the EU

US oil giant ExxonMobil has warned it is ready to move planned investments worth billions of dollars in climate-related projects from the European Union to other parts of the world if Brussels does not curb environmental bureaucracy. The company says this is responsible for the „deindustrialisation of the European economy“, the Financial Times (FT) reports.

ExxonMobil executive Karen McKee told the British newspaper that the company had earmarked 20 billion dollars (over 470 billion Kč) for projects aimed at reducing carbon emissions over the 2022–2027 period. She added that the company would probably prioritise other parts of the world as frustration with Europe’s regulatory burden grows.

„When we invest, we have a very long time horizon in mind. I would say that current developments in Europe do not inspire confidence in predictable policy over the long term,“ McKee said.

„What we are experiencing is the deindustrialisation of the European economy, which concerns us,“ she added.

According to the executive, regulations linked to Europe’s ambitious climate goals are having a very negative impact on business and are leading to „slow and complicated procedures“ for approvals and securing financing.

ExxonMobil is one of the world’s largest oil and gas companies. The company invested more than 20 billion euros (around 510 billion Kč) in Europe over the past ten years. Last December, it announced a pilot carbon capture project co-funded by the European Union.

Some European leaders, including French President Emmanuel Macron and Belgian Prime Minister Alexander De Croo, have already expressed concerns to the European Commission (EC) that environmental regulations are deterring investors. They are also causing discontent and protests among farmers.