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Good morning, here's what the Oilman has for you today:

• UK Climate Camp Freaks Out over Record-Low Carbon …

• Today’s Edition Is Brought To You By, Well, Us

• Exxon Scores Win Against Climate Investors

• Tweet of the Day

UK Climate Camp Freaks Out over Record-Low Carbon Price

The price of carbon permits in the UK fell to a record low this month.

That sparked a full-blown freak-out among transition advocates.

Because without expensive emissions they can’t have a transition.

Nothing in life is free… especially net zero

Carbon permits are a major tool of the transition.

Industrial energy users must buy them to offset the CO2 they emit in the course of their activity.

The more they emit, the more permits they must buy.

Alternatively, they can invest in lowering these emissions.

That makes sense, right?

But in the UK, industrial activity—and its emissions—have been in decline.

So, the price of carbon permits has dropped.

And so have emissions.

This should be good news for the transition, right?

Well, it seems it’s not good news.

So, is the whole net-zero story about emissions at all?

The UK carbon permit story and similar reports suggest that the answer is no.

If it were, every net-zero fan would be celebrating lower UK emissions.

But the point seems to be not so much cutting emissions as financing wind, solar, and EVs.

Replacing certain businesses with other businesses, in other words.

The emission cuts are probably just the icing on the cake.

But not a necessary icing.

How else do you explain that lower emissions are actually bad news for the transition?

Well, you don’t.

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Exxon Scores Win Against Climate Investors

Exxon has won a small victory over activist investors pressing for more climate disclosures.

The investors wanted to demand the major sets of Scope 3 reduction targets.

After Exxon filed a lawsuit, they dropped the plan.

An “extreme agenda”

Follow This and Arjuna Capital wanted to table a petition at Exxon’s next AGM for Scope 3 targets.

The company said the two were following an “extreme agenda” and sued them.

The investors promptly dropped their petition.

It’s a rare instance of activist investors recognizing they’d gone too far.

And probably worried the court would side with Exxon and block a vote on their petition.

Or they realized the petition didn’t really stand a chance with Exxon shareholders.

At least the ones that are there for the dividends and not to enforce climate targets.

Which is most of them.

The Scope 3 nightmare

All Big Oil majors have Scope 3 reduction targets—except Exxon.

Actually, hitting those targets is a very different matter.

Scope 3 emissions are those generated through the use of certain products.

In Big Oil’s case, it’s fuels, plastics, and everything made from oil and gas.

Now, imagine Exxon tracking every single driver using Exxon gasoline, diesel, or oil in their car.

And convincing all those drivers to… drive less.

It’s insanity, and the supermajors know it.

It seems only Exxon had the guts to state it openly.

It’s a good sign for the industry – the fight back against insane targets is just beginning.

Tweet of the Day

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