In a recent interview with the Wall Street Journal, Exxon Mobil’s CEO Darren Woods expressed that the incoming Trump administration should ensure the U.S. stays in the Paris climate agreement.

The leader of the oil company mentioned to the Journal that the unpredictable shifts in the country’s approach to climate agreements create challenges for businesses.

“I believe these unpredictable changes are not conducive to business,” Woods remarked. “They are highly inefficient and generate considerable uncertainty.”

The Journal highlighted that Exxon has been in favor of the Paris agreement since its adoption in 2015.

In 2020, the first Trump administration officially withdrew the U.S. from the agreement, but this decision was reversed by the Biden administration in 2021.

Woods commented to the Journal that the transition between administrations won’t change Exxon’s perspective on the future.

“Our business and investment decisions are not shaped by political agendas,” Woods stated.

Overview of the Paris climate agreement

The Paris climate agreement is a global pact signed by nearly 200 nations to address climate change, which the U.S. joined in 2015 under President Barack Obama.

This agreement requires countries to set their own voluntary targets for reducing greenhouse gases like carbon dioxide, with the only binding element being the obligation to accurately report their progress.

The Trump campaign emphasized exiting the agreement as a significant policy issue. Reports from Politico and Bloomberg suggest that the upcoming Trump administration may aim to withdraw the U.S. from the broader United Nations climate framework.

Should the U.S. be removed from the climate agreement, it would be effective one year after a formal announcement is made.