Public policy engagement

Our advocacy efforts are aligned with our focus on reducing our Scope 1 and Scope 2 emissions and supporting sensible policies that reduce Scope 3 emissions. ConocoPhillips believes a well-designed pricing regime on carbon emissions is the most effective tool to reduce greenhouse gas (GHG) emissions across the global economy, and we continue to advocate for policies aligned with our carbon pricing principles as well as effective and efficient regulatory actions. We support the aims of the Paris Agreement, which include limiting the rise of global average temperatures well below 2 degrees Celsius, as reflected in our ambition to be a net-zero operational emissions company by 2050.

Proactive engagement

Among our efforts, ConocoPhillips is a founding member of the Climate Leadership Council (CLC), an international policy institute founded in collaboration with business and environmental interests to promote a carbon dividends framework in the U.S. as the most cost-effective, equitable and politically viable climate solution. Participation in the CLC provides an opportunity for ongoing dialogue about carbon pricing and framing the issues in alignment with our principles. We are also a member of Americans for Carbon Dividends (AFCD), the education and advocacy branch of the CLC, which focuses on progressing the bipartisan Baker-Shultz Carbon Dividends Plan. In 2021, ConocoPhillips was accepted as a Private Sector Partner within the Carbon Pricing Leadership Coalition (CPLC), a global voluntary partnership run by the World Bank to share and expand the evidence base for effective carbon pricing policies. Participation in the CPLC further demonstrates our commitment to carbon pricing and is complementary to our engagement with the CLC. 

In addition to our work with the CLC and CPLC, we recognize the policy trend in the U.S. toward a regulatory approach to emissions reductions, and we advocate for effective and efficient regulations and legislation to advance economic incentives and reduce GHG emissions. To that end, we are leading discussions around additional policy options, aligned with our principles, that address end-use emissions: 

• Supporting development of alternative carbon pricing mechanisms including some sector-specific programs, which if developed for multiple sectors and combined with a World Trade Organization-compliant Border Carbon Adjustment (BCA) mechanism could function like a carbon price. 

• Supporting the advancement of alternative transportation and power generation as a member of the Fuel Cell and Hydrogen Energy Association (FCHEA). 

• Supporting the robust development of a voluntary offsets market through our membership in the International Emissions Trading Association (IETA) and advocating via IETA and other trades in support of the further development of a voluntary carbon market. 

• Evaluating implementation rules of the Inflation Reduction Act of 2022 to enhance investment economics of several low carbon technology projects. 

More specifically, our 2023 efforts included: 

• Joining the Alliance to Save Energy to support the development of energy efficiency policies and address end-use emissions. 

• Meeting with EPA technical staff to communicate some remaining concerns with respect to issues such as calculating heating values and as part of the New Source Performance Standard (NSPS) reporting. 

• Submitting comments and supporting our trades during meetings with Bureau of Land Management (BLM) and the Office of Information and Regulatory Affairs on the proposed BLM Waste Prevention Rule. 

• Leading the U.S. National Petroleum Council study on Natural Gas GHG Emissions Across the Value Chain, including making policy recommendations at the national level.  

In April 2024, the National Petroleum Council, a federal advisory committee to the U.S. Secretary of Energy, approved a report titled, “Charting the Course: Reducing Greenhouse Gas Emissions from the U.S. Natural Gas Supply Chain.” With input from more than 200 experts, ConocoPhillips led this two-year study that provided consensus recommendations for meaningful actions to reduce emissions from the natural gas system. The report concluded existing policies and actions are expected to result in a 63% decline in methane emissions by 2030 relative to 2020. However, the existing policies will need additional efforts to reduce carbon dioxide which the study expects to increase under the Energy Information Administration (EIA) Reference Case. The greatest reductions will occur under the study’s Technology, Innovation and Policy Pathway (TIP) which implements all recommendations in addition to other measures. Under the TIP Pathway methane emissions will decrease by 70%, carbon dioxide emissions will decrease by 32%, and total GHG emissions will decrease by 52% by 2050 relative to 2020. Read more about the study.  

We have also demonstrated strong engagement with major trade associations to advance climate policy positions that include support for a market-based approach to reduce GHG emissions. To this end, we have shown successful leadership that has yielded positive results and progress within the American Petroleum Institute (API), the Business Roundtable (BRT), the U.S. Chamber of Commerce and others. Our advocacy further addresses methane and flaring regulation, clean fuel or power standards, and sector-specific regulations based on carbon-intensity benchmarks. Publicly communicating our governance processes and the depth of our advocacy efforts is a crucial component of our outreach in addressing stakeholder concerns. 

We also work with our trade associations to drive alignment with our climate change position. 

Within API’s Climate Committee, for example, we work with peers to address climate change issues affecting the U.S. oil and natural gas industry. The group oversees the development of API’s Climate Position, Climate Policy Principles and industry initiatives. The group developed the Climate Action Framework, a combination of policies, innovation and industry initiatives to reduce emissions from energy production, transportation and use by society. We are active in many API committees that can also involve or address climate-related issues, and we work to contribute our perspective in alignment with our positions and actions. 

The American Exploration and Production Council (AXPC) Climate Change Task Force addresses climate change issues affecting the U.S. exploration and production sector of the oil and natural gas industry. The group has helped to develop AXPC’s climate policy and principles, its ESG Metrics Framework and Template, and its position on methane regulations. 

Most trade organizations in which we participate have climate change positions that align with ours. Where they do not, we continue to offer our viewpoint and attempt to work with them to better align their position with ours. For example, we have worked to influence API, BRT, the U.S. Chamber of Commerce and other organizations to support the direct federal regulation of methane. In addition to actively participating in trade organization position updates, we have also voted against or abstained from supporting specific actions requested by a trade organization if their positions were not aligned with ours. We have also decided not to renew some memberships because of misalignment on a number of policy topics, one of which is climate change. 

Read more about our alignment with our associations regarding climate change. 

Read more about public policy governance and major trade association memberships.

Effective policy

Climate change is a global issue which requires global solutions. Economy-wide governmental GHG management frameworks should be linked to binding international agreements comprising the major GHG contributors. Effective public policies should: 

Integrate energy and climate policy: Climate change policy and energy policy should be coordinated to ensure a diverse and secure supply of affordable energy and avoid overlapping or duplicating existing energy and climate change programs. This must create a level competitive playing field among energy sources and between countries and encourage efficient use of energy. 

Promote innovation: Climate change policy should promote government and private sector investment in energy research and development and match the pace at which new technology can be developed and deployed. 

Demonstrate real GHG reductions: It should result in the stabilization of global GHG atmospheric concentrations and foster resiliency to the impacts of a changing climate. 

Provide economic certainty: It should provide long-term certainty for investment decisions and avoid undue harm to the economy. 

Read more about our climate change public policy principles. 

Methane policy

In the absence of a carbon price in the U.S., the economy-wide direct regulation of methane would be effective. We have supported the development of federal regulations for methane emissions from oil and gas exploration and production by providing detailed technical comments via our trade associations or during direct communications with agency staff. In addition to those specific recommendations, we have continued to express our general support for a federal regulatory framework that: 

• Encourages early adopters and voluntary efforts. 

• Incorporates cost-effective innovations in technology. 

• Supports appropriate state-level regulations.

Climate change public policy

We believe that effective climate change policy must be aligned with the following principles: 

• Recognize that climate change is a global issue which requires global solutions. Economy-wide governmental GHG management frameworks should be linked to binding international agreements comprising the major GHG contributors. 

• Result in the stabilization of global GHG atmospheric concentrations. 

• Coordinate with energy policy to ensure a diverse and secure supply of affordable energy. 

• Utilize market-based mechanisms rather than technology mandates. 

• Create a level, competitive playing field among energy sources and between countries. 

• Avoid overlapping or duplicating existing energy and climate change programs. 

• Provide long-term certainty for investment decisions. 

• Promote government and private sector investment in energy research and development. 

• Match the pace at which new technology can be developed and deployed. 

• Encourage efficient use of energy. 

• Foster resiliency to the impacts of a changing climate. 

• Avoid undue harm to the economy.