Shift in Focus: Oil & Gas Over Clean Energy
European energy giants like BP, Shell, and Equinor are reducing investments in clean energy (wind, solar) and focusing more on oil and gas for higher short-term profits.
This shift comes as clean energy projects underperformed compared to the robust profits from oil and gas amid rising energy prices.
Impact of Global Events
Geopolitical factors, especially the Russian invasion of Ukraine, have disrupted clean energy policies, delaying climate targets and increasing energy costs.
The ongoing energy crisis has made oil and gas more attractive, shifting priorities away from low-carbon transitions.
Strategic Decisions by Major Companies
BP: Spun off most offshore wind projects into a joint venture with Japanese power generator JERA, scaling back renewable energy ambitions.
Shell: Halted new offshore wind projects, exited European and Chinese power markets, and weakened its carbon reduction targets.
Equinor: Adopted a more selective approach to offshore wind investments due to inflation and supply chain challenges.
Long-Term Climate Concerns and Outlook
The reduction in clean energy investments is expected to hinder efforts to tackle climate change, with global carbon emissions forecast to hit a new high in 2024.
Despite these setbacks, companies like Shell and Equinor still commit to reaching net-zero emissions by 2050.
However, 2025 may bring continued uncertainty, with geopolitical tensions and climate-skeptic political leadership influencing the global energy transition.
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