BP to abandon renewable targets, divest assets in shift back to fossil fuels
British oil and gas supermajor BP will scrap a previous target to ramp up renewable generation capacity 20-fold by 2030, returning instead to a focus on fossil fuels in an effort to mollify investors.
BP had already abandoned its goal to cut oil and gas output by the end of this decade, in order to address investor concerns over its earnings.
Now the company is set to complete its about-face with a full-fledged return to fossil fuels.
The company announced in mid-2020 a plan to increase its low carbon investment 10-fold by 2030, resulting in a 20-fold increase in renewable energy generation capacity.
However, in 2021, BP had only 3.3GW of installed renewable generating capacity globally. In the company’s 2024 earnings report, only 4GW of installed capacity was reported.
This did not include the 62GW development pipeline attributed to Lightsource BP, which BP acquired in full in October 2024.
These development numbers are likely to shift, however, as BP will also divest assets and cut other low-carbon investments as part of an effort to boost returns.
The U-turn probably comes as little surprise to many, particularly after CEO Bernard Looney resigned in September 2023.
Looney had been regarded as the driving force behind BP’s renewable energy and net zero targets.
But a challenging economic environment has not helped BP maintain Looney’s legacy, with investors increasingly restless over the company’s financial performance.
The timing of BP’s decision to complete its fossil fuel about-face reflects the market uproar being caused by the re-election of US president Donald Trump.