Exxon launched a $3 billion effort focused on lowering its emissions after investors pressured the oil giant to address climate change

Exxon launched a $3 billion effort focused on lowering its emissions after investors pressured the oil giant to address climate change

Exxon Mobil, the largest US oil company, announced on Monday that it was forming a new business focused on low-emissions technologies including carbon capture. The announcement follows reports that investors with more than $2 trillion in assets are pressing the company to move more quickly to address climate change. 

The Irving, Texas-based company said it plans to spend $3 billion through 2025 on what it calls "lower-emission technologies." That's $600 million a year, or 3% to 4% of the firm's project budget for 2021.

Part of that will go toward 20 new carbon-capture projects that Exxon also announced Monday. 

"With our demonstrated leadership in carbon capture and emissions reduction technologies, ExxonMobil is committed to meeting the demand for affordable energy while reducing emissions and managing the risks of climate change," Exxon CEO Darren Woods said in a statement. 

Carbon capture involves sucking greenhouse gas emissions out of ambient air or from point sources, such as steelmaking factories. It's among a suite of technologies researchers say we'll need to achieve the goals of the Paris Agreement, an international accord aimed at keeping global warming in check. 

Read more:Exxon is slashing workers and cutting costs after a historic year of loss. Here's everything we know.

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