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Europe’s Energy Giants Line Up to Endorse Green Deal

The European Union’s newly proposed Green Deal raises “significant questions” for the oil and gas industry, analysts said, but the plan was broadly welcomed by companies across the energy sector.

On Wednesday the European Commission presented a sweeping 50-point plan centered around achieving net zero status in Europe by 2050. The proposals include a new climate law to be drafted within 100 days and stronger carbon taxes including the creation of “carbon borders.” These would levy carbon taxes on imports to prevent the offshoring of emissions by firms that shift activities overseas.

The border tax, in particular, will be closely watched by the oil and gas sector, said Valentina Kretzschmar, director of corporate research at Wood Mackenzie.

“Oil and gas exporters to Europe, including Russian gas and U.S. [liquefied natural gas], will be eager to understand the potential impact of the EU’s momentous announcement — both in terms of the diminishing demand outlook and impact on their revenue through carbon taxes.”

In a statement emailed to GTM, a spokesperson for Shell said the company “welcomes the EU’s new Green Deal and supports the vision to achieve net-zero emissions by 2050 in Europe.”

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