XOM Exxon Mobil Corp

By Sarah Kent

LONDON--Innovation, encouraged by free markets and competition, is the best way to tackle climate change, Exxon Mobil Corp. CEO Rex Tillerson said Tuesday.

Speaking at a conference in London just two months ahead of a major climate change summit, Mr. Tillerson acknowledged the risk posed by environmental changes like global warming, but said it is critical that actions to reduce emissions don't hinder the provision of secure and affordable energy.

The boss of the biggest and richest U.S. oil company said technological development will play an important role here, citing the way in which the U.S. shale revolution has helped reduce emissions by replacing more carbon-intensive fuels with cleaner-burning natural gas.

"These impressive gains have come from the actions of companies operating in free markets in the absence of a comprehensive cost of carbon policy in the United States," Mr. Tillerson said.

"We've proven that with the right policies in place the competition and cooperation inherent in free markets will spur us to invest and innovate."

If a pricing system to limit carbon emissions were to be implemented, Mr. Tillerson said the best system would be a revenue neutral tax.

Write to Sarah Kent at sarah.kent@wsj.com

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October 07, 2015 05:04 ET (09:04 GMT)

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