TotalEnergies Anticipates Protection for Trump's Climate Agreement and the IRA
The French oil giant TotalEnergies does not expect a reversal in significant climate change legislation in the U.S., even in the event of Donald Trump's re-election as president. Aurelien Hamelle, the company’s strategy director, shared this perspective while discussing TotalEnergies' energy outlook, which includes global demand scenarios extending to 2050.
These comments come at a time when the political landscape in the U.S. is being scrutinized ahead of the upcoming elections. Trump has indicated his desire to roll back climate regulations established under the current administration, potentially considering a withdrawal from the Paris Agreement and the repeal of the Inflation Reduction Act (IRA), which had provided crucial support and incentives for clean energy technologies.
Despite Trump's election campaign rhetoric, TotalEnergies’ planning does not anticipate the U.S. withdrawing from the Paris climate agreement or calling into question the IRA. Hamelle noted that such a reversal would require a Congress controlled by Republicans, which current polls suggest is unlikely.
TotalEnergies has significant investments in the U.S. energy sector, including contracts for 10 million metric tons of natural gas annually, ownership of several shale fields, and a total portfolio of solar, wind, and battery projects amounting to 25 gigawatts. The company is also exploring multiple sites for renewable fuel production in the U.S.
Hamelle emphasized the comprehensive support that the IRA provides for private financing across all low-carbon technologies. This support has generated job creation benefits across various areas, including those governed by Republicans.
Highlighting the influential role of the U.S. in the global energy transition, Hamelle stated, "What is clear is that the U.S. will set the pace of the global energy transition... We did not foresee a scenario that is 'worse than current trends'." This outlook reflects the company's expectation that existing legislation will continue to shape the energy landscape for the foreseeable future.