Just like our abandoned Halloween costume ideas, BP’s climate goal turned out to be a little too ambitious.
Driving the news: Oil giant BP has nixed its goal of cutting oil output by 25% by 2030, sources told Reuters. In turn, the company is doing a hard one-eighty and expanding its fossil fuel biz, with developments planned in the Gulf of Mexico and an eye on investments in Iraq and Kuwait.
- BP is reportedly trying to boost margins and restore investor faith through this move.
Why it matters: BP was the only oil major promising to cut oil production by decade’s end. While it still aims to reach net-zero emissions by 2050, the end of its reduction goal marks a change for the firm and reflects the sector’s recent turn away from the green transition.
- Earlier this year, Shell clawed back its emissions targets and abandoned several wind, solar, and biofuel projects, while Equinor downsized its renewables wing.
Big picture: It’s not just oil. This year has seen a wave of big businesses and institutional investors pull back on climate pledges threatening their returns. It goes to show that while pledges are all well and good, they can’t be carried out unless they’re financially viable.—QH