Europe's oil giants reduce climate commitments and investments

Europe's major oil and gas companies are reducing their climate commitments. This shift comes as they face difficulties in achieving their clean energy goals. Equinor ASA, Norway's state-controlled energy firm, announced big plans for net zero emissions back in 2022. However, in February, the company decided not to allocate more than 50% of its capital spending to renewable projects by 2030. Equinor also dropped plans to invest in Vietnam's offshore wind sector, which impacts the country’s green energy plans. This is the first time Equinor has stepped away from offshore wind projects. Previously, the company focused on moving away from fossil fuels to renewable energy. Equinor's CEO, Anders Opedal, noted that while the energy transition has begun, the opportunities for growth are more limited than they expected. Equinor is also halting plans for a hydrogen pipeline from Norway to Germany. The company cited a lack of customers and regulatory issues as reasons for this decision. They had aimed to send blue hydrogen to Germany but will not proceed with the project. Similarly, Shell Plc is scaling back its investments in clean energy. The company has announced it will not make new investments in offshore wind. Shell's CEO, Wael Sawan, is focusing on profitability and has split the power division. A spokesperson mentioned they would consider new ventures if the terms were right. Earlier this year, Shell also canceled plans for a low-carbon hydrogen plant in Norway, confirming they did not see enough market demand for blue hydrogen. This highlights a broader trend among European oil and gas companies facing challenges in their clean energy transitions.