The American Petroleum Institute (API), the largest trade group that represents the oil and gas industry, has finally agreed for carbon emission pricing after resisting it for many years.

The API said it would advocate for sensible carbon emission pricing while avoiding regulatory duplication.

"Confronting the challenge of climate change and building a lower-carbon future will require a combination of government policies, industry initiatives, and continuous innovation," API President and CEO Mike Sommers said in a statement.

"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," Sommers said.

The announcement comes as the White House readies to unveil plans to curb greenhouse gas emissions and transition it to clean energy.