Connect with us

Published

on

BP Rolls Back on Net Zero Goals and Bets $10B on Fossil Fuels: A Smart Move or a Climate Setback?

BP has announced a major shift in its strategy, cutting back on renewable energy investments and increasing its focus on oil and gas. The company plans to invest $10 billion annually in fossil fuels while slashing more than $5 billion per year from its energy transition spending.

This move marks a sharp reversal from its previous commitment to cut emissions and transition toward greener energy. So, what prompted the energy giant to go back on its climate goals?

Why Is BP Changing Its Strategy?

BP’s leadership cited slower-than-expected progress in the energy transition as a key reason for the shift. CEO Murray Auchincloss said the Ukraine war, the pandemic, and unstable energy markets have slowed the shift to renewables.

He acknowledged that BP was too optimistic in its early climate targets, saying,

“Our optimism for a fast transition was misplaced, and we went too far, too fast…We will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset BP, with an unwavering focus on growing long-term shareholder value.”

The company also pointed to strong demand for oil and gas, which remains higher than expected.

As a result, BP now aims to increase oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day (boepd) by 2030—up from its current 2.36 million boepd.

BP’s New Investment Plans

BP plans to spend between $13 billion and $15 billion each year until 2027. Most of this money will now go toward traditional fossil fuels. The company has also announced that it will:

  • Cut energy transition spending to $1.5 billion to $2 billion per year, down from previous forecasts of $8 billion in 2025 and $9 billion in 2030. BP’s big cut shows it expects slower returns on renewables. So, fossil fuel projects are now its main focus.
  • Increase its dividend by 4% each year to draw in investors. This shows confidence in profits, even as green investments decline.
  • Reduce operating costs and divest $20 billion worth of assets by 2027, including parts of its renewables business. BP says these divestments will simplify operations and bring in cash quickly.
  • Sell a 50% stake in Lightsource BP, its solar business, and shift to a capital-light renewable energy model. BP will not fully develop its green energy projects. Instead, it will depend on outside capital and partnerships. This approach cuts its financial risk but keeps BP involved in renewables.

Dialing Down Climate Commitments

The energy major’s combined Scope 1 and 2 emissions were 32.1 MtCO2e in 2023. This is a decrease of 41% from its 2019 baseline. This means they’ve already surpassed their 2025 target of 20% emission reductions against the baseline. 

BP ghg emissions 2023
Source: BP Sustainability Report

BP has changed its strategy. It has lowered its climate goals and moved away from its earlier decarbonization plans. The company’s revised targets include:

  • Cutting Scope 1 and 2 emissions (from its own operations) by 45%-50% by 2030, down from the original 50% goal. This slight reduction reflects BP’s decision to keep oil and gas production at higher levels than originally planned.
  • Reducing the carbon intensity of its products by 8%-10% by 2030, compared to the previous 15%-20% target. This weaker target shows that BP is focusing on short-term profits instead of making bigger cuts in emissions from its fuel products.
  • Eliminating its absolute Scope 3 emissions reduction target, which previously aimed for a 20%-30% cut by 2030. Scope 3 emissions make up most of an oil company’s total carbon footprint. They arise from how people use its products, not from the company’s direct operations. Critics say BP’s decision to remove this target signals a major retreat from its climate commitments and a lack of accountability for downstream emissions.
BP net zero pathway
Note: This chart is intended to be illustrative of a range of contributions that individual aspects of our plans may make relative to others. They should not be taken to represent specific expectations of actual impacts of actions driving delivery.
  • BP’s aim 1 means to be net zero across its entire operations on an absolute basis by 2050 or sooner.

The energy giant’s new climate goals show a shift seen in many big oil companies. Many of them are slowing down their green efforts due to economic uncertainty. By abandoning absolute Scope 3 targets, BP avoids binding commitments to reduce emissions from its gasoline and diesel sales, which make up the bulk of its carbon footprint.

Investor Pressure: Chasing Profits Over Sustainability?

BP is reducing its focus on renewable energy. This change follows pressure from Elliott Investment Management. They want BP to boost its financial returns.

BP has also underperformed compared to competitors like Shell, Exxon, and Chevron, leading to dissatisfaction among investors.

oil majors annual profit
Image from Reuters

Following the announcement, BP’s share price fell by 1.8%, reflecting mixed reactions from the market. Some investors like the new focus on profits. But others think BP is giving up on long-term sustainability.

BP’s move could also have regulatory implications as governments worldwide tighten emissions standards. With climate policies evolving, companies that fail to adapt may face higher compliance costs in the future.

Environmental Groups Call Out BP’s ‘Climate U-Turn

BP’s return to fossil fuels has angered environmental groups. It has also worried investors who care about sustainability. Greenpeace UK called the decision “proof that fossil fuel companies can’t or won’t be part of climate crisis solutions.”

Meanwhile, Global Witness criticized BP. They claimed the company cares more about quick profits for shareholders than protecting the environment in the long run. The group held a protest in London. They used mobile billboards to call out BP’s leaders for their “flip-flop” climate policy decisions.

BP’s move also raises concerns about its alignment with global climate goals. The International Energy Agency (IEA) states that new fossil fuel projects can’t help limit global warming to 1.5°C. By increasing oil and gas production, BP may stray from the global net-zero goal.

What This Means for BP’s Future

BP’s shift signals a clear return to traditional fossil fuel business models, with a reduced emphasis on clean and renewable energy. While this move may generate higher short-term profits, it raises concerns about BP’s ability to adapt to a decarbonizing world.

Many experts believe that, over time, stricter climate regulations and changing energy markets will force oil companies to prioritize renewables once again.

BP’s shift in priorities could also affect its reputation among environmentally conscious investors and consumers. Companies that continue investing in fossil fuels at the expense of renewables may struggle to attract younger, sustainability-focused investors who prioritize long-term climate goals over immediate financial returns.

For now, BP is betting on oil and gas—but whether this strategy pays off in the long run remains uncertain. As the world moves toward net-zero goals, its decision to step back from renewables could impact its standing in the energy sector in the years ahead.

The question remains: Will BP’s return to fossil fuels prove to be a wise financial move, or will it leave the company behind in an increasingly green-focused world?

The post BP Rolls Back on Net Zero Goals, Bets $10B on Fossil Fuels: A Smart Move or a Climate Setback? appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

McKibben opts for a small-tent climate movement

Published

on

A few months ago I went to a climate change forum at the Center for Brooklyn History. The panel I attended, “Confronting Climate Change: Understanding Deniers,” featured the prominent climate activist, Bill McKibben.

Bill McKibben. Courtesy https://billmckibben.com/.

I was curious to hear McKibben’s take on climate change deniers. I don’t regard the true deniers as a big problem – they’re only 11-15% of our country, according to most polls. Rather, I wondered if McKibben would label as “climate deniers” people who agree that climate change is a significant problem but disagree with his framing and his proposed solutions. I have worked for decades on energy and climate matters as an energy lawyer. Now, more than ever, I believe that to address climate change we need to build a big tent.

In the Q&A I tested where McKibben is on this by asking if he would label as a climate denier someone who subscribes to the main tenets of climate change science yet holds that natural gas has a role to play as a bridge fuel. (Our exchange starts at 1:12:45 of the video.)

This could have been a chance for McKibben to make clear that such a view isn’t climate denialism, even if he feels it’s misguided. But he punted, saying “I don’t care whether they’re deniers or not.” For good measure, he threw in his long-standing refrain that swapping coal for natural gas makes climate change worse, despite coal’s far higher carbon content per unit of energy.

674-MW methane-powered generating station, Salem, MA.

As you can hear in the recording, McKibben’s claim that gas is worse than coal draws on the work of Cornell scientist Robert Howarth. Yet McKibben didn’t mention that Howarth’s work is controversial and disputed by many scientists. The crux of the dispute is whether methane’s impact on warming should be measured with a 20-year or 100-year time frame.

Methane is a relatively short-lived greenhouse gas, with a lifetime of around 10 years, versus the 100-year life applicable to carbon dioxide. But each ton of methane is far more potent while in the atmosphere, trapping roughly 100 times as much heat as a ton of CO2. These cross-cutting facts about atmospheric methane — shorter life but greater potency than CO2 — have resulted in two opposing camps: one insisting on a 20-year timeframe for greenhouse gas accounting, the other adhering to the established 100-year frame. This matters because with a 20-year timeframe, generating electricity with natural gas (which, chemically speaking, is essentially all methane) is more damaging to climate than coal-fired electricity.

McKibben blew past this dispute. To hear him at the Center for Brooklyn History, one would have no inkling that there’s an active disagreement over which timeframe to use, that there are staunch climate activists who favor the 100-year time frame, and that the Intergovernmental Panel on Climate Change  (IPCC) generally uses the 100-year timeframe.

McKibben’s latest (2025) book. Published by W.W. Norton & Company.

McKibben also insisted that a discussion about natural gas’s potential role in mitigating climate change as a replacement for coal is irrelevant because solar “is now our cheapest resource.” McKibben’s claim, of course, suffuses “Here Comes the Sun,” his 2025 book that extols solar power as the cheapest solution for all of our energy needs. But this too is questionable, because it’s based on cost comparisons between solar farms and natural gas power plants (or nuclear power plants) that fail to consider that electricity supply and delivery is a complex system of wires and plants rather than individual power plants. Based on his remarks, McKibben is choosing to ignore studies such as the comprehensive 2025 report from the Clean Air Task Force that concluded that plant-level cost comparison “is a good metric to track historical technology cost evolution [but] is not an appropriate tool to use in the context of long-term planning and policymaking for deep decarbonization.” And the task force is not alone in finding that when electricity is treated as a system, solar loses its place as the cheapest low-carbon resource.

The dogmatism McKibben displayed at the Brooklyn meeting was unfortunate. We’re in a time when efforts to combat climate change are in retreat. A unified front is required to turn the tide. Instead of doubling down on absolutist positions, activists like McKibben who seem convinced that the solution to climate change is all-renewables, end of discussion, should be seeking common ground with others who want climate action but believe that nuclear power and natural gas must also play a role.

NYC Climate March, Sept 17, 2023. Photo: C. Komanoff.

Climate change activists need to build a bigger tent, rather than call anyone who disagrees with their positions a climate change denier. It is striking that McKibben stuck to his guns after saying in the same talk that the most important goal for everyone right now is to help climate change realists win more House and Senate seats in this year’s midterms. As some have noted, an absolutist position on natural gas appears less likely to achieve that win and politicians are following that advice.

Will McKibben evolve? He has demonstrated that he knows how to build a national climate movement centered around issues like divestment. Given the current political situation, he should focus on building an even bigger tent by welcoming all of the 85% who believe that we need to address climate change but do not agree with his ideological positions.

Rich Miller is an energy lawyer who has worked for a variety of stakeholders and now gives walking tours in lower Manhattan on the history of electricity. 

Continue Reading

Carbon Footprint

Rebranding ‘Balcony Solar’ as ‘Guerrilla Solar’ won’t lift its climate value.

Published

on

Image generated with Claude. Why have we juxtaposed a bicycle with balcony solar? Read on.

First it was Plug-In Solar. Then it was Balcony Solar. Now it’s Guerrilla Solar, at least according to Inside Climate News, which yesterday proclaimed that The ‘Guerrilla Solar’ Era Has Arrived.

“It,” of course, is Modular solar panels. They’re the hot new photovoltaic solution: cheap enough to buy at Home Depot, easy to hang or prop to catch maximum rays, and small enough to fit on a balcony (if you’ve got one) and plug into your “home grid.” But, alas, too meager a generator of electricity to be more than a bit player in decarbonizing most U.S. homes.

How do I know? I’ve done the math.

A standard, lower-end 220-watt balcony solar array will produce 337 kilowatt-hours a year, or 28 kWh a month averaged over the course of a year. That’s for a 220W unit measuring 3.5 feet by 3.5 feet. (220W x 1/1000 x 17.5% x 8760 hours per year = 337 kWh. Calculation assumes a 17.5% full-year capacity factor, which is arguably generous for New York, where I live. )

Our balcony solar mashup. Top: an install in Germany. Bottom: Home Depot advert.

A typical U.S. home consumes 10,500 kWh a year, or 28 to 29 kWh per day, says Solartech, drawing on U.S. Energy Information Administration data. That puts a home’s daily power needs on par with a balcony solar unit’s monthly output. In effect, once each month the balcony array gifts a homeowner or renter a bit more than day’s full complement of electricity. And earth’s atmosphere gets the same respite: a 3 percent reduction in carbon emissions caused by the home’s electricity usage.

(The 3 percent figure could also be calculated directly by dividing 337 kWh per year of solar production by 10,500 kWh per year to run the home. For bigger or smaller arrays, just prorate your assumed wattage by my 220W; for 440W, say, double my figures.)

Balcony Solar metrics

Why write about balcony solar if it’s so inconsequential? CTC’s mission includes puncturing would-be climate balloons before they ascend too far. In the same vein, we practice quantification to make clear what does and doesn’t move the climate needle. (More on that further below.)

The best way to depict balcony solar’s climate value is to express it in terms of tangible metrics. We’ve selected two. Both assume the basic, lower-end PV array I assumed at the top: a 3.5 foot-square array whose peak output is 220 watts.

1. It would take 50 million 220W balcony solar units (bsu’s) to restore the climate benefit we destroyed in 2020-2021 when we shut the high-performing Indian Point nuclear power plant 32 miles from Midtown Manhattan.

2. A single person cutting back their driving by a mile a day would provide the same climate benefit over the course of a year as a single 220W bsu.

(Calculations in sidebar. Now you know why we led with images of an urban dweller as cyclist and balcony solar user.)

Yes, it’s dense — as befits a sidebar. The numbers tell a story. Follow the color co-ordination.

Ponder that: It would take fifty million smallish bsu’s to level up to the fossil fuel carbon emissions that Indian Point was keeping at bay by supplying the New York City area year in and year out with abundant carbon-free power. Deploying that many balcony solar units would entail 10 bsu’s for each of the 5 million households in the MTA’s service territory. (The Metropolitan Transportation Authority provides subway, bus and commuter rail transit in the five boroughs and seven suburban counties.) Or, if those same households upgraded to 1100-watt bsu’s, collectively they would still make up only half of the lost Indian Point power.

The second comparison, involving driving, is perhaps trickier to grasp but more interesting, since it relates to people’s behavior. Living differently isn’t part of public discourse, at least not in the USA, and especially when what’s being served up is using less. But “reducing,” as we might call it (remember “Reduce, Reuse, Recycle”? or, “Insulate, then Insolate”?) is just as potent for cutting emissions as switching to renewables — even more so when the reducing means driving less, considering the multitude of benefits that accrue from diminishing cars’ imprints on our communities. Still, staying on topic: driving just one fewer mile per day brings about the same shrinkage in carbon emissions as deploying one 220W solar array.

What Balcony Solar boosters are really saying

To be fair, our friends at Inside Climate News and, yes, The New York Times appear to be trying to modulate their balcony solar enthusiasm.

ICN‘s Dan Gearino, whom we cited up front, said he looked to Germany, the birthplace of balcony solar, to see if the units made sense for U.S. households. His takeaway: “It may make more sense financially to spend the cost of plug-in solar on insulation, air sealing or other basic measures to reduce energy use.” Hooray: insulate before you insolate.

Gearino helpfully interviewed renewables guru (and U.S. emigré) Craig Morris, who currently heads Germany’s plug-in solar trade association, Bundesverband Steckersolar. To Morris, balcony solar’s main advantages are that it provides power without taking up land, and that it affords people a way to “become participants in the transition to clean energy.” Behold, guerrilla solar. That, in turn, bolsters “the political consensus that supports the transition.” But Morris also made clear that widespread adoption of plug-in solar would only meet “about 2 percent of Germany’s electricity demand.”

Morris’s “about 2 percent” feels right for Germany. But not for the U.S., where widespread adoption of virtually any individual carbon alternative seems forever out of reach, and where the energy pie is so much larger — think giant fridges, freezers for beer, steroidal homes bursting with piles of powered toys, not to mention industrial and institutional electricity use that Morris correctly excluded from his figure.

Don’t forget to micro-dose. NYT headline + image for David Wallace-Wells’ guest essay (see text). Image by Rui Pu.

Both Gearino and Morris seem more measured than climate journalist Robinson Meyer, founding editor of Heatmap and frequent contributor to The Times, where he wrote about balcony solar in mid-June.

“New zero-carbon power kits will allow Americans to make their own energy choices,” declares the callout to the print version of Meyer’s NYT guest essay, The Tiny Solar Panel That Could Change America. (The even more expansive print headline invites us to “Forget Roofs. Backyard Solar Is the Next Frontier.”)

Wallace-Wells is of two minds. He calls balcony solar “a small way that apartment- and condo-dwelling Americans can take ownership of their energy choices and cut down their pollution on the margins.” No quarrel there, thanks to his qualifiers “small” and “on the margins.” Earlier, though, he opines that balcony solar units “have the potential to change how Americans understand and consume energy,” But read further and you’ll again see Wallace-Wells cautioning that “Balcony solar will play one small role in [the] drama” of transiting to the new world of clean, abundant energy.

Any such caveats are welcome these days, amid widespread solar hoopla. Still, it doesn’t seem to be in Wallace-Wells’ toolkit — or that of Inside Climate News and other mainstream climate journalists — to tutor their audiences as to the  true limits of balcony solar and other panaceas. Just like it wasn’t in their field of vision a decade ago to lay out the true stakes of shutting Indian Point as Riverkeeper was singing its siren song.

What’s Next for NY Balcony Solar

Meantime, as Canary Media reported recently (and helpfully), New Yorkers concerned with climate and affordability are waiting for NY Gov. Kathy Hochul to sign the recently passed SUNNY (Solar Up Now New York) Act legalizing balcony and other plug-in solar. It would be head-spinning (and politically suicidal) if she didn’t, given near-universal support ranging from Con Edison to DSA Assembly Member Emily Gallagher, who told Canary Media, “This is the most popular bill I’ve [ever] worked on.”

My guess is that Hochul is waiting for the right moment, and perhaps the right “package,” that can advance and not undercut her push to launch five large new nuclear power plants around the state — one to be built by the public New York Power Authority, the others to be constructed and operated privately. A little bit of math, a la what we offered here a la Indian Point, might help her out.

The governor also must manage the veritable hot potato of her deferred implementation of the landmark 2019 Community Leadership and Climate Protection Act. She might do well to consider jettisoning the act’s unwieldy cap-and-invest centerpiece in favor of a straight-up carbon tax (with the revenues distributed pro rata to the state’s households) in its place. That, far more than balcony (or guerrilla) solar, could blow open the door to the “innovations and technologies we cannot yet imagine” that Wallace-Wells fantasized about in his Times essay.

Continue Reading

Carbon Footprint

The new SBTi Corporate Net-Zero Standard: what it means for business

Published

on

On 11 June 2026, the Science Based Targets initiative (SBTi) published the most substantial revision of its flagship corporate framework since its introduction. The SBTi Corporate Net-Zero Standard Version 2.0 takes effect on 1 February 2027 and reshapes the way companies approach their net-zero targets.

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com