With Donald Trump back in the White House, the global energy landscape is shifting. Oil giant BP is reversing course, moving away from renewables and doubling down on fossil fuels.
BP’s turnaround began in early 2025. The company abandoned its plan to scale renewable capacity to 50 gigawatts by the end of the decade. Instead, it redirected focus toward oil and gas. Clean energy budgets were cut by more than $5 billion. Meanwhile, fossil fuel investments climbed sharply—reaching up to $10 billion a year. This pivot reflected growing investor demands for higher returns and a political climate increasingly hostile to climate policy under President Trump.
Scaling Back Green Goals
BP once promised to grow its renewable energy capacity 20 times by 2030. However, that goal is now off the table. In early 2025, the company officially scrapped its 50-gigawatt renewable energy target.
At the same time, BP is slashing its green investment budget. It once planned to spend over $7 billion per year on renewables. Now, it will only spend about $1.5 to $2 billion. Meanwhile, oil and gas projects will receive up to $10 billion annually.
Exiting Wind and Hydrogen Projects
In July 2025, BP sold its entire U.S. onshore wind business to LS Power. The deal included ten wind farms, totaling over 1.3 gigawatts of capacity. The company also pulled out of a massive green hydrogen project in Australia. Known as the Australian Renewable Energy Hub, the project would have generated 26 GW of clean energy.
These exits are part of a $3–4 billion asset sell-off. As a result, BP is making it clear: it’s returning to oil and gas.
Trump’s Policies Fuel the Shift
President Trump’s administration is rolling back clean energy policies. Subsidies for solar and wind are being cut. Federal support for green infrastructure is fading fast. That makes renewables less profitable—and less attractive to investors.
Additionally, anti-ESG sentiment is growing in political and corporate circles. Major firms like BP are feeling pressure to focus on short-term returns rather than long-term sustainability.
Investors Want Profits, Not Promises
New BP CEO Murray Auchincloss took over in 2024. Under his leadership, the company is prioritizing returns on capital. Activist investors, including Elliott Management, are demanding a renewed focus on profitability.
Accordingly, Auchincloss has ramped up oil and gas investment while abandoning underperforming clean tech ventures. These moves are intended to restore investor confidence—but they’re also raising alarm among climate advocates.
Why It Matters
BP was once a leader in the oil industry’s transition to clean energy. Today, it’s pulling back just when the world needs action most. Although the company says it still supports a net-zero future, its current actions say otherwise.
This reversal isn’t isolated. Other oil giants—like Shell and Equinor—are also scaling back green investments. And with a fossil-fuel-friendly administration in the White House, the trend may accelerate.
Still, global demand for clean energy continues to grow. Despite political setbacks, renewable projects remain critical to reaching climate goals.
Sources:
Fortune – “BP’s painful retreat from the renewables it once championed” CEO Murray Auchincloss says the energy transition went “too far, too fast,” reflecting BP’s pivot back to oil and gas
Reuters – “BP to ditch renewables goals and return focus to fossil fuels” BP scrapped its target to scale renewables 20‑fold by 2030 and reduced low‑carbon investment by over $5 billion amid investor pressure and favorable fossil‑fuel economics
The Guardian (via Reuters reporting) – Energy transition reset BP CEO acknowledged the green push was overly ambitious. The company aims to boost oil and gas output by 60% by 2030 while slashing renewables spending
Reuters (news) – “BP abandons green hydrogen project in Australia in shift towards oil and gas” BP exited the 26 GW Australian Renewable Energy Hub, signaling a clear withdrawal from large-scale renewable and hydrogen ventures
