The policy keys to unlocking a European industrial comeback

Europe is at a critical point. To lead in reducing emissions, the European Union enacted policies that reduced industrial activity. These rigid policies increased costs, leading to the shutdown of 21 chemical sites in 2023 and our chemical site in France in 2024.

That’s why EU policy is an important issue for ExxonMobil. With over 100 years in Europe, we are deeply invested in the region's success.

At a recent event in Antwerp, the EU released new details on a Clean Industrial Deal, with the objective of reducing red tape and increasing investments. From what we’ve seen, it’s an encouraging start. But many in the industry are unconvinced the proposals show that Europe is truly open for business.

The main issue is that Europe has continued to pick winners and losers, rather than fostering an environment where industry and technology can compete to bring innovative solutions.

For example, the EU wants to reduce emissions from hydrogen use in industry, but it still dictates green hydrogen as the only solution despite lower-cost options being available. Green hydrogen is simply unaffordable in the near to medium term for many industries. So rather than invest in better alternatives, industry players are choosing to rationalize and reduce their production rates, ceding ground to Asia and the Americas.

Why not set an emissions intensity reduction target and challenge industry to innovate and reduce the cost of carbon reduction?

Europe has the resources, skills and infrastructure to grow its economy and reduce carbon emissions. But it needs supportive policies with clear rules of the road.

A year ago, we asked the EU to use our scientists' and engineers' expertise to contribute to finding diverse solutions for Europe's low-carbon emissions ambitions. We want to be part of the solution.

Since then, our corporation has increased our global plans for lower-emissions investments from $20 billion to $30 billion by 2030. To put this in perspective, our annual worldwide spend is about 50% more than the yearly budget of the EU Innovation Fund. Very little of that is slated to go into our EU assets without changes in policy and the continent is missing out.

The goal is clear: to reduce emissions and reindustrialize Europe.

While the Clean Industrial Deal indicates the EU is listening to industry and wants to help, it remains to be seen whether it is enough to attract a significant portion of ExxonMobil’s planned $30 billion in lower-emission investments.

A successful Europe can push the world and our industry forward. The time to act is now, before it is too late.