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illuminem summarizes for you the essential news of the day. Read the full piece on The Telegraph or enjoy below:
🗞️ Driving the news: BP has announced a “fundamental reset” of its strategy, halting all investment in renewable energy and refocusing on fossil fuels
• The company plans to sell off 10 US wind farms and restructure its offshore wind assets in partnership with Japan’s Jera Co.
• This shift follows a sharp decline in profits and pressure from activist investor Elliott Management
🔭 The context: BP’s 2024 profits dropped to $8.2 billion, down from $13.4 billion in 2023, leading to a cut in executive bonuses
• Under former CEO Bernard Looney, BP had aggressively expanded its green energy investments, but shareholder discontent and underperformance have driven a return to hydrocarbons
• BP’s stock has fallen 9% over the past year, compared to a 6.5% rise for rival Shell
🌍 Why it matters for the planet: BP's move signals a retreat from its net-zero commitments, potentially slowing the energy transition
• In 2024, BP invested £9 billion in fossil fuels, nearly seven times what it spent on renewables
Critics warn that this shift undermines global efforts to curb emissions and combat climate change
⏭️ What's next: BP will present its updated strategy on February 26, with analysts predicting further divestments and possible investor-driven restructuring
• Speculation is growing that Elliott Management could push for a US listing or major asset spin-offs
💬 One quote: “The figures suggest abandonment of the net zero targets the company pledged five years ago.” — Global Witness
📈 One stat: BP spent £9 billion on fossil fuels in 2024, compared to £1.3 billion on renewables
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