TotalEnergies urges Donald Trump to maintain U.S. climate commitments

Patrick Pouyanné, CEO of TotalEnergies, calls on Donald Trump to uphold U.S. climate commitments if he wins in 2024, fearing the impact of excessive deregulation on the oil industry and public opinion.

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Patrick Pouyanné, CEO of TotalEnergies, has issued an appeal to Donald Trump to preserve the United States’ climate commitments should he be elected president. In an interview with the *Financial Times*, Pouyanné expressed concerns about the potential consequences of extreme deregulation, which could harm the image of the oil industry and complicate relations between the sector and the public.

According to Patrick Pouyanné, a strict regulatory framework, particularly concerning methane emissions, would be preferable to a “Wild West” regulatory environment. He emphasized the importance of a rigorous EPA (Environmental Protection Agency) to maintain regulatory conditions favorable to climate objectives.

During his previous term, Donald Trump withdrew the United States from the Paris Climate Agreement, a decision later reversed by his successor, Joe Biden. Under this agreement, the United States committed to halving its greenhouse gas emissions by 2030 relative to 2005 levels. Trump, however, has declared his intention to revoke these climate commitments if re-elected, sparking concerns among energy sector stakeholders.

For TotalEnergies, these commitments are crucial to avoid demonizing the oil industry. Pouyanné believes that breaking climate promises would heighten tensions between the industry and public opinion, hindering constructive dialogue on a balanced energy transition.

A cautious view of the Inflation Reduction Act

In parallel, TotalEnergies’ strategic leadership spoke about the future of the Inflation Reduction Act (IRA), a framework supporting low-carbon technology investments in the United States. During the presentation of the Energy Outlook 2050, Aurélien Hamelle, General Manager of Strategy and Sustainability at TotalEnergies, estimated that the chances of overturning this act are slim. “For this law to be challenged, it would require a fully Republican Congress with a majority in both chambers, which political analysts say is unlikely,” Hamelle explained.

The benefits of the IRA for Republican states

Hamelle also pointed out that the IRA directly benefits many Republican-led states and districts, thereby fostering low-carbon energy projects in areas where Republicans hold significant political influence. This dynamic could limit the desire within the Republican party to repeal the law, given the local economic benefits these investments provide.

In January 2021, TotalEnergies decided to leave the American Petroleum Institute (API), an influential organization representing the American hydrocarbon industry, due to disagreements over climate policy. The French group specifically criticized the API for its support of methane emission regulation rollbacks, its opposition to electric vehicle subsidies, and its differing stance on carbon pricing.

Through this decision, TotalEnergies demonstrated its commitment to distancing itself from lobbying policies deemed incompatible with its goals for energy transition and combating climate change.

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