France’s total leaves the powerful US oil lobby on climate policy

French energy company Total became the first major oil company to end its membership of the American Petroleum Institute, Big Oil’s powerful lobbying group in Washington, citing its position on climate change and support for politicians who opposed the deal. Paris.

The move exposes a widening gap between US and European oil supermajors in climate policy and comes just days before Joe Biden enters the White House with a promise to return to the Paris climate pact, crack down on oil industry pollution and launch a clean energy supply revolution project.

Total also cited API’s opposition to subsidies for electric vehicles and its support last year for reversing Trump government regulations to limit emissions of methane, a potent greenhouse gas.

Total is “committed to ensuring, in a transparent manner, that the sectoral associations of which it is a part adopt positions and messages aligned with those of the group in the fight against climate change”, said Chief Executive Patrick Pouyanné.

The stance follows an API conference this week in which the lobby group exposed areas of disagreement with the new Biden administration. This includes the president-elect’s proposals to limit new drilling on federal land in the United States.

In addition to its controversial support for federal reversals of Obama-era methane regulations, the API supported the Trump administration’s efforts to open Alaska’s wilderness protected area to drillers.

Major environmental shareholders and activists, especially in Europe, have criticized major oil companies like BP and Royal Dutch Shell for being members of organizations that have lobbying positions that go against the promises these companies are making to reduce emissions.

The main Norwegian pension fund KLP, which manages $ 80 billion, said Total’s decision would put pressure on Equinor, Shell and BP to follow suit.

“There is simply no justification for any association with lobby groups that reverse emissions regulations and undermine urgent climate action,” said Jeanett Bergan, head of investment responsible for KLP.

Bernard Looney, BP’s chief executive, defended his company’s adherence to the API in an interview with the Financial Times last year, saying the UK oil group had helped change the lobbying body’s position on some policies.

“While you may think that they don’t have the most progressive climate policy, it is much more progressive than it was,” said Looney. “And that is part of us being there helping and pushing.”

But Total’s move will give impetus to activists’ calls for other European oil companies to exit the API. Together with BP and Royal Dutch Shell, Total had already abandoned its affiliation with American Fuel & Petrochemical Manufacturers, a lobby group for refiners.

Total’s US business includes refining in Texas and upstream operations in the Gulf of Mexico and some shale fields. It announced a joint venture this week with 174 Power Global, a unit of South Korea’s Hanwha Group, to install a new solar power and battery storage capacity in the U.S., part of its attempt to build a global renewable energy business. .

The API has long represented the interests of major oil companies in Washington, including last year, when U.S. President Donald Trump sought to protect domestic oil producers from a collapse in oil prices.

She claims to be a member of more than 600 operators, ExxonMobil and Chevron, and also sets safety standards for the industry.

API said Total’s withdrawal reflected the “diversity” of views in the industry, but did not support what it described as an “energy subsidy”. In a somewhat softened message in the face of the new Biden administration, he also said this week that he was “open to the possibility” of further regulation and working with the new EPA administrator and the next president “on how we can do this, the right way” .