BP To Cut Green Investments Amid Sharp Profit Decline
BP To Cut Green Investments Amid Sharp Profit Decline.
BP, the oil industry leader, has announced plans to "fundamentally reset" its strategic approach following a significant decline in profits last year.
It is anticipated that the company will reveal later this month a reduction in its renewable energy initiatives while increasing its oil and gas output, mirroring similar strategies adopted by competitors such as Shell and Equinor.
In 2024, BP reported a net income of $8.9 billion (£7.2 billion), a decrease from $13.8 billion in the prior year.
The company attributed this decline to lower prices for oil and gas, as well as reduced profits from its refining operations.
Five years ago, BP established an ambitious goal of achieving 50GW of renewable energy generation capacity by 2030.
LATEST: OpenAI Rejects Elon Musk's $97 Billion Takeover Bid.
This target is expected to be abandoned on February 26, marking a significant shift in the company's strategy.
BP has already begun to reduce its focus on renewable energy, having placed the majority of its offshore wind assets into a joint venture with the Japanese firm Jera in December, aiming to distinguish these assets from its primary fossil fuel operations. Additionally, the company halted new wind projects in June of the previous year.
BP’s decision to scale back green investments exposes the company’s wavering commitment to sustainability. After years of promoting its renewable energy ambitions, this retreat suggests that profit remains the ultimate priority, even at the cost of long-term environmental responsibility.
Blaming market conditions, BP follows the familiar pattern of oil giants prioritizing short-term gains over meaningful climate action. With competitors like Shell making similar moves, the industry’s green promises seem increasingly like PR tactics rather than genuine transformation. This shift raises serious doubts about BP’s role in the energy transition and its willingness to lead in a future beyond fossil fuels.
