TotalEnergies on Trump and U.S. Climate Policy

By America Hernandez

PARIS (Reuters) – French oil major TotalEnergies (EPA:TTEF) does not anticipate that Donald Trump would pull the U.S. out of the Paris Agreement or undo the Inflation Reduction Act (IRA) if he became president again, according to the company's strategy director, Aurelien Hamelle, on Monday.

Hamelle made these remarks while presenting Total's energy outlook, which forecasts global demand scenarios up to 2050. The company's current trends scenario does not predict the lifting of the U.S. ban on new liquefied natural gas (LNG) export facilities.

Why It’s Important

Ahead of Tuesday's election, Trump has campaigned on a platform aimed at rolling back climate regulations established under President Joe Biden, which include leaving the Paris Agreement and potentially undoing the IRA, a significant set of subsidies and incentives for clean energy.

Context

TotalEnergies is a key buyer of U.S. natural gas for export with contracts totaling 10 million metric tons per year, in addition to holding interests in U.S. shale fields and planning future projects. The company also manages a 25-gigawatt portfolio of solar, wind, and battery projects in the U.S., and is evaluating sites for renewable fuel production.

Key Quotes

"We take into account existing legislation in our current trends scenario, and for the IRA to be called into question, you would need a Republican-controlled Congress, which the polls suggest is unlikely," Hamelle noted.

He added, "Republican states and districts have benefited from the job creation offered by the IRA, which provides a framework of support for private finance in all low-carbon technologies."

"What is clear is that the United States will set the pace of the global energy transition. We have not forecast a 'worse than current trends' scenario."