Large energy companies such as Shell and BP have recently chosen to reassess their commitments to renewable energy. This year, a notable slowdown in their investments in wind and solar projects has been observed, raising concerns about the future of the energy transition. BP and Shell are now focusing more on oil and gas projects, which are considered more profitable in the short term, while adapting to an uncertain economic context.
Shell and BP: strategic shift towards fossil fuels
In 2024, the oil giants Shell and BP confirmed their decision to slow down their investments in the renewable energy sector. This new direction follows economic and regulatory uncertainties affecting projects related to wind and solar energies. Both companies have chosen to focus on oil and gas projects, which are more profitable in the short term. This choice has been largely influenced by pressures to maintain profitability and meet shareholder expectations. Read more on Zegreenweb.
Impact on global energy transition
The retreat of BP and Shell from their investments in renewable energy raises crucial questions for the global energy transition. These decisions come at a time when the need to reduce CO2 emissions is more pressing than ever, especially concerning the 1.5°C scenario set by various international agreements. This reversal represents a significant turning point for the industry, which could slow down the efforts of many countries seeking to reduce their dependence on fossil fuels. Learn more on L’Usine Nouvelle.
Economic and political repercussions
The gradual abandonment of projects related to renewable energy by BP and Shell has considerable economic and political repercussions. Indeed, this strategy influences international energy policies and could set a precedent for other major industry players. The friction between climate obligations and financial goals could exacerbate political tensions both within countries and between them. For more relevant information, check L’état en France.
