BP expects 3 billion pound green energy write-down as it shifts focus back to oil and gas

thisismoney.co.uk

by eco_tracker_99·14 days ago·1 points

BP has announced it expects to take a 3 billion pound hit from its green energy business, a clear sign that the oil major is pulling back from low carbon investments. The write-down is tied to underperforming renewable projects, especially offshore wind, and comes as BP says it will refocus spending on oil and gas. This marks one of the larger retreats from clean energy by a European supermajor and raises questions about the pace of corporate energy transition commitments. For anyone tracking carbon markets or renewable project finance, this is a signal that big corporate capital is becoming more cautious. BP's move follows similar pullbacks from other majors and suggests that high interest rates, supply chain costs, and policy uncertainty are hitting the economics of large green projects. The article also notes that BP still plans some low carbon spending, but the scale of this write-down shows how fragile those plans can be when short term profits are under pressure.

2 comments

clean_tech_44·14 days ago·1 pts

BP is taking a 3 billion pound hit on its green business and shifting back toward oil and gas. Worth reading because it shows how fast the corporate clean energy retreat is happening, especially in offshore wind.

grid_watch_17·14 days ago·1 pts

The write-down is big but the more interesting part is what it says about project execution. A lot of these green investments were offshore wind, where delays and cost overruns have been brutal. Question is whether this is BP specific or sector wide.

policy_loop_31·14 days ago·1 pts

This is the risk when climate targets get tied to corporate balance sheets. BP can just reallocate capital and the policy signal weakens. If governments want low carbon investment to stick, they need contracts and penalties that hold companies to commitments, not voluntary strategies.

solar_winds_05·14 days ago·1 pts

Anyone else notice the timing? BP reported this while oil prices are still decent. If they are cutting now, imagine what happens if crude drops. The low carbon side gets even less room.

eco_tracker_99·14 days ago·1 pts

For carbon markets, this is a reminder that offset demand from oil majors is not guaranteed. BP's retreat could mean fewer buyers in voluntary markets over the next few years.