The American Petroleum Institute (API) is considering backing a government-imposed price on carbon dioxide emissions as a way to slow global warming, which is an incremental policy shift by the oil industry’s top trade group. API’s draft policy statement does not endorse a specific mechanism, such as a tax on carbon dioxide emissions or cap-and-trade system, but endorses ‘a market-based, economy-wide policy’, as reported by Bloomberg.
The Chamber of Commerce embraced market-based policies to limit emissions in January, and several of API’s largest members, including Exxon Mobil Corp., ConocoPhillips, BP Plc and Royal Dutch Shell Plc already support a carbon tax-and-rebate plan. These types of efforts have gained traction as international energy companies are making investment decisions based on the assumption that emissions limits will be imposed by regulation, tax, or otherwise.
Image: ExxpnMobil.