Major energy providers, including BP, Shell, and ExxonMobil, are now scaling back—or delaying—their net‑zero commitments. This shift isn’t driven purely by ideology, but by profits, regulatory complexity, and market pressures. As fossil fuel revenues surge, renewables are losing their shine in boardrooms accustomed to immediate returns.
Short‑Term Gains Trump Long‑Term Goals
Oil and gas profits are higher than ever—BP reported oil/gas earnings of $56 billion in 2024, fueling a pivot back to their core business . Shell slashed its green energy spending and sold off retail assets, while BP halved its offshore wind expenditure after $18 billion in initial investment.
Regulatory & Financial Complexity
Renewables face stricter permitting, higher capital costs, and unstable policies. Research shows developers often shelve projects when returns don’t meet expectations due to burdensome regulations . Meanwhile, subsidies for fossil fuels still dominate—tilting the economic scale against green energy.
Political and Public Pushback
Backtracking on net‑zero is also fueled by political fear. Politicians in the UK and Australia are retreating amid backlash over rising energy costs and industrial vulnerability. Financial giants like BlackRock and JP Morgan are abandoning net-zero alliances under political pressure, weakening the global drive for emissions reduction.
Can Renewables Bounce Back?
To restore momentum, a multipronged approach is essential:
- Stable, long-term policy frameworks that offer certainty for renewables investments.
- Simplified permitting and boosted public investment, especially in local communities resistant to projects.
- Markets that reflect true carbon costs, eliminating fossil fuel subsidies and incentivizing low-carbon tech.
The renewable transition is at a crossroads. Energy majors are retreating from net-zero because short-term profits, political hesitation, and policy gaps overshadow long-term climate commitments. But with public sentiment leaning pro-renewables, and global emissions still climbing, stable policies and bold leadership can reignite green momentum—keeping net-zero goals within reach.
