Equinor has become the latest fossil fuel giant to scale back its clean energy commitments, announcing on Wednesday that it will halve its planned investments in renewable energy and low-carbon technologies to $5 billion over the next two years.
The Norwegian state-owned company also confirmed plans to increase oil and gas production to 2.2 million barrels per day by 2030, 10% higher than previously projected. A key part of this strategy hinges on developing Rosebank, the UK’s largest untapped oilfield, located off the Shetland Islands.
Equinor’s decision reflects a broader trend among oil majors retreating from renewable energy investments, following similar moves by Shell, BP, and TotalEnergies, all of whom have sought to capitalize on oil and gas market volatility.
The budget cuts will slow the expansion of Equinor’s clean energy business, reducing its target capacity for offshore wind and other renewables to 10-12 gigawatts (GW)—down from its previous goal of 12-16 GW.
Environmental groups criticized the move, calling it another example of fossil fuel companies prioritizing profits over climate commitments.
The Rosebank oilfield, expected to receive £8.1 billion in investment, has become a flashpoint in UK energy policy. While Equinor argues the project will create 1,600 jobs during construction and 450 jobs during operation, climate activists and some UK officials, including Energy Secretary Ed Miliband, have condemned the project as “climate vandalism.”
Despite a recent court ruling declaring the UK government’s approval of Rosebank unlawful, Equinor has signaled its intent to push forward with development under a new regulatory process expected in spring.
Equinor’s move follows a trend of oil giants scaling back green commitments:
- BP is expected to drop its oil production reduction targets and revise clean energy goals to boost its struggling stock price.
- TotalEnergies announced a 10% cut in low-carbon energy spending, despite reporting its third-highest annual profit of $15.8 billion.
- Shell has already slowed its renewable investments, prioritizing oil and gas profits.
With fossil fuel firms walking back on green pledges, pressure is mounting on governments to enforce climate commitments rather than relying on voluntary corporate targets. Meanwhile, Equinor’s focus on increasing oil production while still maintaining some renewable investments raises questions about the future of the energy transition and whether major oil companies can truly balance profit-driven decisions with climate action.
