Climate Change

At Chevron, we recognize and share the concerns of governments and the public about climate change. The use of fossil fuels to meet the world's energy needs is a contributor to an increase in greenhouse gases (GHGs) - mainly CO2 and methane - in the earth's atmosphere. There is a widespread view that this increase is leading to climate change, with adverse effects on the environment.

We took early action to create a comprehensive plan, known as the Fourfold Plan of Action on Climate Change, which is in the fifth year of implementation. We are:

• Reducing emissions of GHGs and increasing energy efficiency.
• Investing in research, development and improved technology.
• Pursuing business opportunities in promising, innovative energy technologies.
• Supporting flexible and economically sound policies and mechanisms that protect the environment.

Climate change is a global concern. Nation by nation, coordinated frameworks are essential. Fragmented actions have the potential for undue economic cost without effectively mitigating climate change risk.

In alignment with our Fourfold Plan of Action on Climate Change, the following principles are essential to ensure flexible and economically sound policies in light of uncertainties that exist:

• Global Engagement: The reduction of greenhouse gas emissions must be shared equitably by the top emitting countries of the world. We support equitable sharing via long-term and coordinated national frameworks.
• Energy Security: Fossil fuels are expected to dominate energy supply for decades to come. Climate policy must recognize the role these critical energy sources play to ensure security of supply and economic growth.
• Maximize Conservation: Energy efficiency and conservation are the most immediate and cost-effective sources of new energy, with no GHG emissions. Government programs to promote energy efficiency and conservation must continue and should be enhanced.
• Measured and Flexible Approach: GHG reduction objectives must avoid a disruptive economic impact and allow for realistic turnover in capital and a phase in of new, low-carbon technologies. Periodic "check points" are advised in light of new scientific and economic impact information.
• Broad, Equitable Treatment: Broad and equitable treatment of all sectors of the economy is necessary to ensure no sector or company is disproportionately burdened.
• Enable Technology: Government support and partnerships with the private sector for pre-competitive research and development in carbon mitigation and clean energy technologies must continue at an accelerated pace.
• Transparency: The costs, risks, trade-offs and uncertainties associated with such climate policies must be openly communicated.