Climate Lobbying Overview: Air Liquide is actively engaging on climate change policy in the EU and US, and appears to take mixed positions on regulation. The company strongly promotes the role of green and blue hydrogen in the energy mix, but appears unsupportive of increasing the ambition of several key climate policies in the EU such as the EU Emissions Trading System.

Top-line Messaging on Climate Policy: Air Liquide appears mostly supportive of action on climate change in its top-line messaging. In the company’s 2019 Annual Report, published in March 2020, it supported achieving net zero by 2050 in line with IPCC recommendations. In May 2021 in an opinion piece for The Washington Times, the Executive Vice President Mike Graff voiced support for the US’s goal of net-zero by 2050. Air Liquide also welcomed the EU’s Fit for 55 package in response to an EU consultation in November 2021. However, in its 2021 CDP Climate Change Disclosure, the company stated that unilateral EU regulatory costs are burdensome and hamper the international competitiveness of EU industry. In a March 2021 press release, Air Liquide supported the UN Paris Agreement.

Engagement with Climate-Related Regulations: Air Liquide takes mixed positions on climate regulations. In response to an EU public consultation in November 2021, the company supported some reforms to increase the ambition of the EU Emissions Trading System (EU ETS) proposed by the EU Commission in the Fit for 55 package, but was unsupportive of a proposal to make the free allocation of emissions allowances conditional on corporate decarbonization efforts. In an earnings call in July 2021, the CEO Benoît Potier supported a Carbon Border Adjustment Mechanism in the EU alongside existing free allowances in the EU ETS, a position which contradicts the EU Commission’s proposal.

In response to an EU public consultation in November 2021, Air Liquide voiced support for the EU Commission’s proposed reforms to increase the ambition of the Energy Efficiency Directive, on the condition that mandatory audits are “manageable and workable.” The company was supportive of a sub-mandate for e-fuels within the sustainable aviation fuels mandate in the ReFuelEU initiative in response to a public consultation in November 2021. However, Air Liquide advocated to include low-carbon hydrogen, produced with fossil gas and CCS, in the renewable hydrogen target in the EU Commission’s proposal for a reform of the Renewable Energy Directive in response to a public consultation in November 2021.

Positioning on Energy Transition: Air Liquide seems to support the energy transition, and has strongly promoted the role of hydrogen. In its 2020 Annual Report, published in March 2021, the company supported hydrogen as a driver to decarbonize society and transport. In response to a public consultation on the Hydrogen and Gas markets Decarbonisation Package in March 2021, it advocated for a role for both green hydrogen and low-carbon or ‘blue’ hydrogen produced with methane and CCS. Air Liquide supported the promotion of renewable and low-carbon hydrogen in the Energy Taxation Directive in response to an EU public consultation in November 2021, but did not support the phase out of exemptions for energy intensive industries. However, it advocated for more ambitious hydrogen refueling targets in comments on the EU Commission’s proposed reform of the Alternative Fuels Infrastructure Directive in November 2021. In March 2021, in an interview with H2 View, Air Liquide Vice President Mike Graff advocated for policies to support the development of low-carbon and renewable hydrogen in the US.

Industry Association Governance:Air Liquide does not appear to publish a complete list of industry associations, with the most recent disclosure in its 2020 Universal Registration Document. It did not disclose further details of the company's role within each organization's governing bodies, nor their climate change policy positions. Air Liquide has not published a review of alignment with its industry associations. The company retains a number of strong links to organizations that are engaging negatively on climate policy. A senior executive is on the board of the National Association of Manufacturers and the US Chamber of Commerce, and Air Liquide chairs the Climate Change Committee of MEDEF.