Energy & Climate


As a global energy consumer and industrial manufacturer, as well as a major manufacturer of energy conversion and power-generation products, Caterpillar has a fundamental interest in, and understanding of, energy needs around the world. We provide products with leading integrated technology to various energy customers and leverage our technology and innovation to meet the world’s growing energy needs.

Greenhouse gas (GHG) accumulation in the atmosphere is a major concern in both the public and private sectors because of the potential for these gases to affect climate patterns. As a result, many governmental and intergovernmental organizations are implementing mechanisms in an attempt to reduce GHG emissions.

Caterpillar supports integrated carbon and climate policies that effectively balance environmental and economic considerations. We understand that the most immediate and measurable benefits will occur through energy-efficiency improvements and corresponding GHG emissions reductions.

In response to the challenge of reducing GHG emissions, we are:

  • Pursuing energy-efficiency and GHG-reduction goals for our operations.
  • Investing in energy-efficiency and GHG-reduction technologies for our products that are important to our stakeholders and represent significant areas of opportunity for our business.
  • Committing to the development and deployment of advanced technologies that capture and store GHG emissions.
  • Supporting policies and mechanisms that harness the marketplace to drive innovation, mobilize investment and facilitate sharing these technologies.
  • Encouraging the coordination of domestic and international programs that maximize the use of flexible, proven mechanisms to sequester carbon in soils, plants and ecosystems.

Additionally, we support the reduction of GHG accumulation through improved GHG management practices. We understand that some atmospheric scientists believe atmospheric GHG accumulation can occur as a result of inefficient or excessive fossil fuel combustion, poor waste management practices or poor land management practices. Caterpillar is a leader in the development and deployment of innovation and technologies that, through our products, assist in the mitigation of all three of these sources.


Despite divergent proposals under discussion worldwide, technology and innovation play a key role in any successful strategic approach to emissions reduction. Further, the private sector must take the lead in developing and deploying technology solutions to reduce GHG emissions. Ideally, regulatory structures should provide a technology-neutral and level playing field in which competitive solutions can be developed.

Businesses will struggle to find solutions if vastly differing approaches to GHG reduction are implemented around the world. That is why we continue to endorse a comprehensive, international approach that encompasses GHG-reduction commitments from all major economies. We encourage constructive dialogue and a proactive approach to providing energy safely, efficiently and affordably to the billions of people who inhabit our planet.


Carbon can offer productive uses in a variety of applications. We are investing in research and advocating for policies that support these developments in diverse areas such as improved land management, restoration of degraded lands, and carbon capture and storage technologies.

For example, we are a founding member and co-funder of the Energy Technologies Institute (ETI), a collaboration between industry and the U.K. government to accelerate the development of technologies that address the challenges of climate change and provide affordable energy access.

Additionally, Caterpillar is a member of the project advisory group for the Midwest Geological Sequestration Consortium (MGSC), a national research partnership funded by the U.S. Department of Energy. With the objective to safely demonstrate the viability of long-term storage of CO2, the MGSC developed a large-scale demonstration project designed to store 1 million metric tons (1.1 million U.S. ton) of CO2 in Decatur, Illinois. Now in the ongoing monitoring phase of the demonstration project, MGSC also hosts knowledge-sharing events and shares research results with the project advisory group.


One of the biggest differences between a developing nation and a developed nation is reliable access to energy. Lack of access to modern energy services hinders economic and social development, making it more difficult to provide water purification, sanitation and education. Today, technology and natural resources exist to rapidly expand energy access, but the challenge is accomplishing this in an effective and efficient manner.

To increase energy access, we believe:

  • Access to affordable and dependable energy resources is critical for energy security, economic prosperity and growing economies. Caterpillar supports balanced and comprehensive energy policies for the responsible development and utilization of all energy resources, including traditional sources of energy and expanded use of alternative energy technologies.
  • No single solution can provide abundant, reliable, secure and reasonably priced energy on a global basis. Market-based, cost-efficient energy solutions are the best way to help meet the world’s growing energy demands.
  • Political and industry leadership is required to forge consensus and a commitment to providing energy and related infrastructure that address economic development, stability and environmental impacts.
  • When regulation is necessary, regulatory structures should provide a technology-neutral and level playing field that embraces competition and in which Caterpillar, our independent dealers and our customers can operate.
  • We support the development and use of strategies and technologies to increase energy efficiency and reduce emissions.

Energy diversification – such as coal in combination with carbon capture and storage, new nuclear buildouts, new natural gas reserves, plus renewable energy sources like biogas, wind, photovoltaic or solar, tidal and others – will contribute to an energy portfolio that helps eliminate energy poverty, raises standards of living and propels economic growth with less impact on the environment. Eliminating energy poverty is a vision that can be achieved.

Read about our progress in our Sustainability Report

Sustainability at Caterpillar

Sustainable Development for Caterpillar means leveraging technology and innovation to increase efficiency and productivity with less impact on the environment and helping out customers do the same.

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Sustainability Report

Each year this report serves as the flagship document for stakeholders to understand Caterpillar's commitment to sustainability.

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