BP has revealed its true priorities by scaling back its renewable energy ambitions in favour of fossil fuels, as profits took a sharp downturn in 2024. The oil giant’s net income plummeted to $8.9 billion (£7.2 billion), down from $13.8 billion the previous year, prompting a “fundamental reset” of its strategy—one that places oil and gas back at the forefront.

The company is expected to formally abandon its previous goal of 50GW of renewable energy capacity by 2030 at an investor meeting on February 26. This marks a clear reversal of its earlier green commitments, aligning with similar moves from Shell and Equinor, which have also deprioritized renewables in pursuit of higher returns.

BP has already distanced itself from offshore wind, forming a joint venture with Japan’s Jera in December to separate these assets from its core fossil fuel operations. The company also froze new wind projects in mid-2024, making it evident where its loyalties truly lie.

Pressure has mounted on CEO Murray Auchincloss following reports that activist investor Elliott Management has acquired a stake in BP. Elliott is expected to push the company further towards increasing oil and gas production while reducing investment in renewable energy sectors. Analysts speculate that Elliott may advocate for BP to monetize undervalued green energy assets, further signaling the company’s retreat from its sustainability commitments.

Auchincloss has announced plans to “fundamentally reset” BP’s strategy in response to the profit slump, promising a renewed focus on cash flow and returns. The full extent of this overhaul is expected to be detailed at an investor day on February 26, with potential cuts to green projects likely on the agenda.

This shift exposes BP’s reluctance to lead on climate action, raising concerns about the sincerity of corporate net-zero pledges. As the company turns its back on renewables, the broader energy transition faces yet another corporate-driven obstacle.

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