The American Petroleum Institute (API) released a robust policy framework of industry and government actions to address the risks of climate change while meeting the world’s long-term energy needs. 

Some of the pillars in the framework were expected, including:

• Accelerate technology and innovation to reduce emissions while meeting growing energy needs

• Further mitigate emissions from operations to accelerate environmental progress

• Advance cleaner fuels to provide lower-carbon choices for consumers

• Drive climate reporting to provide consistency and transparency

Pretty standard initiatives already backed by API and industry leaders. 

One pillar, however, stood out as a major shift:

• Endorse a carbon price policy to drive economy-wide, market-based solutions

API historically has not supported putting a price on carbon emissions. Just a decade ago the organization fought a cap-and-trade bill (article is behind a paywall) with similar carbon taxes.

“As our industry accelerates efforts to advance groundbreaking technologies, reduce emissions and drive transparent and consistent climate reporting, we urge lawmakers to support market-based policies that foster innovation, including carbon pricing,” said Mike Sommers, API president and CEO.

The carbon pricing endorsement doesn’t outline any specific plan and comes with a major stipulation: New policies should avoid regulatory duplication.

"What we’re not going to support is just putting a price on carbon or carbon tax or whatever it is on top of the existing regulatory regime," Sommers told Bloomberg.

Supporters say a carbon tax would help propel emissions reductions in difficult-to-decarbonize businesses like cement and steel making. A price on carbon could create demand and revenue for technologies that are too costly to develop and deploy today.

But the policy isn’t a bipartisan slam dunk. Most congressional Republicans don’t support carbon pricing, even as BP, Exxon, Shell and other large industry players have backed it. And congressional Democrats are pushing for steep emissions reductions and big spending increases on low-carbon infrastructure and research.

The API says it’s adjusting its position to preserve a role for oil companies in helping solve the climate change problem.

We’ll see if they’re just blowing hot air.