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 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’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.

• RELATED: Big Oil’s Showdown: How Shell, Chevron & ExxonMobil Balance Big Profits with Net Zero?

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.

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?

• READ MORE: 2025: The Year Clean Energy Dominates with Record $670 Billion Investment, Trumping Oil & Gas

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.

Zefiro Methane Corp. is teaming up with tech firms Geolabe and Keynum to find and repair old, leaking oil and gas wells. This effort will cut methane emissions using artificial intelligence. The partnership also aims to cut costs, speed up repairs, and share carbon credits better.

Zefiro Founder and Chief Executive Officer Dr. Talal Debs commented,

“With millions of orphaned and abandoned oil and gas wells spread throughout twenty-six different states, utilizing advanced solutions to locate and permanently plug more of these sites is essential. Both the Lifecycle Solution developed with CarbonAi and our partnerships with Geolabe and Keynum bring innovative technologies into this important endeavor, and our heightened ability to increase our project portfolio, reduce costs, and promote efficiencies throughout our operations solidifies Zefiro’s position as a market leader.”

Zefiro Invests in Smarter Methane Detection with AI

Satellites and AI are transforming how methane emissions are tracked. With real-time monitoring, companies can quickly detect and address leaks. Drones with infrared cameras further enhance detection at oil and gas sites, while automated systems improve data accuracy, reducing errors and increasing transparency. These tools make methane reduction efforts more effective and help strengthen carbon credit programs.

The press release mentions that Zefiro is betting on the advantage of these innovations by partnering with Geolabe and Keynum. On January 10, 2025, Zefiro signed an agreement with Geolabe to use its AI-powered satellite imaging system—the first fully automated tool for detecting methane emissions. This technology analyzes satellite images with unprecedented accuracy, and Zefiro will contribute real-world well data to further refine its capabilities.

Since December, Zefiro has also been working with Keynum, a firm specializing in AI and data science, to develop a dashboard that maps orphaned wells across multiple states. Keynum’s predictive modeling identifies wells with significant methane leaks, helping Zefiro prioritize repairs and accelerate carbon credit certification. These partnerships are positioning Zefiro as a leader in methane abatement, making the cleanup process faster, smarter, and more impactful

Turning Data into Climate Action

Zefiro already uses advanced monitoring and data analysis tools to detect and verify methane leaks. These technologies have been successfully used in multiple projects to improve detection and mitigation.

However, this time, it is taking a big step forward by launching Zefiro Lifecycle Solution. Developed with CarbonAi Inc., this new platform will simplify data collection and workflow management, making it easier and more cost-effective to seal abandoned wells. It will also speed up the certification of carbon offset credits by the American Carbon Registry, helping Zefiro maximize its impact in the fight against methane emissions.

Chief Technology Officer Richard Walker of Zefiro said,

“By harnessing the unique powers of artificial intelligence to process satellite imagery and the blockchain, Zefiro continues to find new ways to help stem the proliferation of orphaned and abandoned oil and gas wells. These innovative solutions will expand our operational footprint, enable best-in-class economics for our carbon credit initiatives, promote certainty in our methodologies, and ensure the integrity of our plugging measurements to help more communities reclaim critical air, water, and land resources.”

• READ MORE: COP29: Launch of “An Eye on Methane”, Will Pledges Turn into Progress? 

Methane Leaks from Oil and Gas Wells Are a Major Climate Threat

Old, abandoned oil and gas wells can leak methane. Methane is a greenhouse gas. It traps heat 25 times better than carbon dioxide. It has caused 30% of the global temperature rise since the industrial revolution. This impact worsens climate change. It also pollutes water and harms human health.

A study from the Environmental and Energy Study Institute (EESI) found that in 2018, the EPA estimated abandoned wells released 290 kilotons of methane. This equals burning over 16 million barrels of oil.

These unplugged wells leak methane and other harmful pollutants. This worsens the climate crisis and threatens public health. Sealing these wells quickly is vital for reducing emissions and protecting communities.

Zefiro Capitalizes on Growing Demand for Carbon Credits

Millions of abandoned oil and gas wells across 26 U.S. states leak methane, worsening climate change.

According to Zefiro, each well releases about 78 cubic meters of methane yearly. This adds up to nearly 23 million tons of CO2 equivalent. However, sealing them would cost over $600 billion.

So, how does Zefiro tackle this challenge? The company has created a toolkit to stop methane leaks, protecting land, air, and water. It offers top-notch methane offset credits from the U.S. It partners with businesses, government, and environmental groups. This strategy reduces emissions and attracts more investment to address the orphaned well crisis.

Methane Offset Credits in High Demand

• Methane reductions have an immediate climate impact due to methane’s potency.
• Carbon credits from methane abatement projects are valued for their strong environmental benefits.
• Unlike other carbon offsets, methane projects also improve local air quality.

A report by Climate Wells shows that since 2004, methane credits have cut just 19 million tons of CO2e. That’s less than 1% of the 4 billion tons reduced in voluntary carbon markets (VCM).

Demand is rising. Over the past year, methane credit retirements grew by more than 70%. This makes them one of the fastest-growing credit types on the market.

Last year in November, Zefiro’s subsidiary, Plants & Goodwin, Inc. (P&G), successfully sealed its first gas well in Custer County, Oklahoma. This deep gas well reached 15,000 feet underground. To seal it permanently, we removed 5,000 feet of casing. The project will create carbon offset credits approved by the American Carbon Registry.

In conclusion, Zefiro’s partnership with Geolabe and Keynum is a game-changer. By using AI to pinpoint major methane leaks, the company can tackle emissions more effectively. These advancements are expected to cut costs and boost methane capture by 50%.

• READ MORE: Carbon Credits in 2024: What to Expect in 2025 and Beyond ($250B by 2050)

The post Zefiro Methane Revolutionizes Well Sealing: Uses AI & Blockchain to Stop Methane Leaks appeared first on Carbon Credits.

As Australia’s largest oil and natural gas producer, Woodside Energy faces growing pressure to reduce greenhouse gas (GHG) emissions while maintaining energy production. The company uses a carbon credit strategy to offset emissions. This supports its goals for decarbonization and reaching net zero.

In 2024, Woodside retired 1.3 million carbon credits. This was nearly double the amount from the year before. They also managed a portfolio of over 20 million credits. These credits came from several programs, like the Australian Carbon Credit Unit (ACCU) scheme, Gold Standard, and Verra.

Carbon Credits in Emission Reduction: A Shortcut or a Necessity?

Woodside uses carbon credits as a key component of its strategy to address Scope 1 and 2 emissions.

According to its 2024 Annual Report, the company offsets emissions that exceed its net reduction targets. Due to the high costs of big technologies like carbon capture and storage (CCS) or electrifying LNG facilities, carbon credits remain a good choice.

The company stated in the report that:

“The use of carbon credits as offsets remains an important part of Woodside’s approach to Scope 1 and 2 GHG emissions, due to the high potential cost of large scale abatement options. We both originate (i.e. invest in our own carbon projects) and acquire carbon credits, to maintain a diverse portfolio differentiated by underlying abatement method, geography and vintage.”

Some investors want Woodside to cut back on carbon offsets. However, Woodside believes carbon credits are essential for tackling hard-to-reduce emissions.

The company prioritizes direct emission reductions first, then uses credits for remaining emissions. Executive pay ties to gross Scope 1 and 2 reductions. Offsets don’t count. This approach ensures that abatement measures come first.

Net Zero Roadmap: Cutting Emissions While Powering Australia

Woodside’s net zero strategy focuses on three main areas:

• Decarbonizing assets,
• Improving energy efficiency, and
• Investing in lower-carbon solutions.

The oil company has set the following emission reduction targets:

Scope 1 and 2 Emissions: Reduce net equity emissions through direct abatement and offsets. The Australian oil giant aims to cut net equity Scope 1 and 2 emissions by 15% by 2025 and 30% by 2030, using 2016-2020 as a baseline. Woodside aims to do this by using carbon capture and storage (CCS) at key sites. They will boost efficiency and use more renewable energy in their operations.

Scope 3 Emissions: Invest $5 billion in new energy products and lower-carbon services by 2030. This will help reduce 5 million metric tons per year (Mtpa) of CO2 equivalent. The company is focusing on hydrogen, ammonia, and renewable energy projects. These efforts aim to help customers decarbonize their supply chains.

Operational Efficiency: Launch emissions reduction projects to achieve a 15% efficiency gain in LNG operations by 2030. This involves electrifying some processes, cutting methane leaks, and improving fuel use.

Woodside reported Scope 1 and 2 gross equity emissions of approximately 6.78 million tons of CO2 equivalent (mt CO2e) in 2024, up from 6.19 million tons in 2023. The increase was largely attributed to the start of production at the Sangomar oil and gas field in Senegal.

Yet, its net equity Scope 1 and 2 emissions have fallen from 5.53 to 5.44 mt CO2e as seen below. 

The company is working hard to cut emissions. It aims to improve equipment efficiency and optimize processes at its LNG facilities. Additionally, Woodside is evaluating partnerships to develop large-scale CCS projects that could store millions of tons of CO2 annually. It is also working more with renewable energy providers. This will help add clean energy to its supply chain and support its net-zero goals.

Carbon Offset Initiatives and Reforestation Projects

In addition to purchasing credits, Woodside develops its own carbon offset projects. The company has implemented several large-scale reforestation and conservation initiatives.

• Australia: Planted 3.2 million biodiverse seedlings on 4,800 hectares in Western Australia. This brings the total to 8.9 million seedlings across 13,000 hectares.
• Paraguay: Funding the reforestation of 7,400 hectares in the Chaco region. This project aims to generate about 2.4 million carbon credits over 40 years.
• Senegal: They support mangrove restoration on 7,000 hectares in the Sine Saloum and Casamance regions. This project is expected to produce 1.8 million carbon credits over 40 years.

These projects boost biodiversity and store carbon for the long term. They also align with Woodside’s sustainability goals. The company estimates that its existing offset projects will generate around 10 million carbon credits by 2035, helping to balance emissions from fossil fuel production.

• RELATED: Prairie Operating Co. and the Oil Industry’s Shift Toward Sustainable Energy Practices

Challenges and the Future of Carbon Credits in Oil and Gas

While carbon credits offer a near-term solution for offsetting emissions, the long-term sustainability of this approach is debated. Some corporations have scaled back on offsets, citing concerns over credibility and effectiveness.

Voluntary carbon credit issuance declined by 4% in 2024 due to weaker demand. Woodside is still committed to its offset strategy. This is especially true for emissions that current technologies can’t yet eliminate.

The company sees the risks of offsets. And so, it wants to balance using them with cutting direct emissions. Technologies like post-combustion carbon capture, hydrogen fueling, and electrification are being studied. Their costs range from $200 to $500 per ton of CO2, making it hard to deploy them on a large scale right now.

Woodside has committed $500 million toward research and development of these technologies over the next decade.

Woodside has teamed up with industry and government groups to create a carbon storage hub. The goal is to capture up to 10 million tons of CO2 each year by 2040. This initiative aligns with broader national efforts to transition toward a lower-carbon economy while maintaining Australia’s energy security.

Industry and Investor Reactions to Woodside’s Carbon Strategy

Investor response to Woodside’s climate strategy has been mixed. Some shareholders want less reliance on carbon credits. They also urge a stronger focus on cutting emissions directly.

At Woodside’s 2023 annual meeting, almost 49% of shareholders rejected the company’s climate plan. This shows worries about its heavy reliance on offsets. However, others support the approach, provided it is complemented by clear abatement initiatives and cost-effective offset sourcing.

Regulatory bodies are also increasing scrutiny of carbon credit strategies. The Australian government is creating new rules for carbon credits. These rules will make sure that companies follow strict transparency and additionality standards. This may change how Woodside buys and uses offsets in the future.

Woodside Energy is weaving carbon credits into its sustainability strategy. They use offsets and also invest in emission reduction technologies. With 1.3 million credits retired in 2024 and over 20 million in its portfolio, the company remains committed to managing its carbon footprint.

However, as industry standards evolve and scrutiny on offsets increases, Woodside’s long-term success will depend on its ability to scale direct abatement efforts alongside its reliance on carbon credits.

• READ MORE: Carbon Credits Surge: $16B Fuels 2024’s Race for High-Quality Offsets

The post Woodside Almost Double Carbon Credit Use: Can Offsets Deliver Net Zero for Australia’s Energy Giant? appeared first on Carbon Credits.

Clearloop, the carbon solutions subsidiary of Silicon Ranch inked a multi-year solar deal with Microsoft to unlock 100 MWAC of renewable power This initiative targets about 20 underserved American communities and broadly aims to decarbonize the U.S. grid and boost economic growth.

According to EIA’s latest forecast, the US expects 63GW of new utility-scale power projects in 2025, with solar PV leading the way. Utility-scale solar PV will contribute 32.5GW, making up 52% of the total. In 2024, it set a record by adding 30GW, according to EIA data.

Silicon Ranch: A Pioneer in Solar Solutions

Silicon Ranch started in 2011. It’s a top provider of solar energy, battery storage, and carbon solutions. The company helps expand clean energy. It has a portfolio of more than seven gigawatts of solar and battery storage projects in the U.S. and Canada.

Silicon Ranch owns and runs all its projects, showcasing a strong success record. It also leads the country’s largest agrivoltaics portfolio through Regenerative Energy®. This initiative blends regenerative ranching with land stewardship. It aims to improve soil health, boost biodiversity, and enhance water quality.

A key project in its portfolio is the large solar facility in Hattiesburg, Mississippi. It was developed with Mississippi Power. This project has a capacity of 50 MWAC. It includes 198,500 solar modules and covers 450 acres. Hattiesburg, Forrest County, and the Area Development Partnership collaborated to make it successful. Below is the onsite picture.

Clearloop: A Top Carbon Solution Provider

Clearloop, a Silicon Ranch company, provides carbon solutions for businesses, schools, and global companies. It accelerates the clean energy transition by creating solar projects in underserved communities. With this purpose, they believe that this initiative supports a fair energy shift.

It is collaborating with the environmental tech nonprofit organization WattTime which offers solutions by providing data and technical assistance about the potential projects.

Clearloop uses “emissionality” to find the best places or high-impact areas for new solar projects. These projects can cut carbon emissions and boost economic investment effectively.

• READ MORE: SolarBank Sparks Solar Surge: A Bright Future for U.S. Renewable Energy 

Unlocking the Solar Agreement to Decarbonize Arkansas and Louisiana

Laura Zapata, Clearloop CEO and Co-founder said,

“We applaud Microsoft for using its purchasing power to pilot and scale innovative structures that accelerate grid decarbonization in a way that ensures all American communities can see themselves represented as we transform our economy with clean, innovative technologies. Community-centric climate action by forward-thinking companies like Microsoft—recognizing that not all megawatt hours have the same carbon impact—are making access to carbon-free energy by more Americans possible.”

The First Phase: Solar Projects in the Pipeline

The press release revealed that the first phase of this multi-year agreement includes four large-scale solar projects. They will begin construction in the coming months. These projects will be among the first to connect to local distribution grids and provide clean energy in Arkansas and Louisiana.

Specifically, they will be located in Poinsett County, Cross County, and Desha County in Arkansas, as well as Bienville Parish in Louisiana. All four sites are expected to be operational by the end of the year, bringing renewable energy infrastructure to regions with strong community ties and rich histories

Project Execution

Silicon Ranch will develop, own, and operate the new solar portfolio for its entire lifespan, just like all Clearloop projects. As part of the agreement, Clearloop will launch a Community Benefits Fund, managed by the nonprofit Sustain Our Future Foundation. This fund will support local communities facing environmental and social challenges.

WattTime will help to find the best locations for new solar projects using Clearloop’s emissions data. By placing solar installations where they can reduce the most carbon, this initiative is expected to prevent over 5 million metric tons of emissions in the next 40 years.

These projects will also boost energy diversity in Arkansas and Louisiana, helping create a cleaner and more sustainable power grid.

Microsoft Steps Closer to Its 2030 Carbon Negative Goal

Danielle Decatur, Microsoft Director of Environmental Justice noted,

“Clearloop helps Microsoft achieve its carbon negative goals by supporting renewable energy projects in communities across the country that might otherwise miss out on the economic and environmental benefits of the energy transition.”

Earlier Microsoft and Clearloop partnered in 2023 to launch a major solar project—a 6.6 MWDC facility in the Mississippi Delta. This project, which started operating in the summer 2024, is expected to cut 200,000 tons of carbon emissions. It also led Silicon Ranch to invest millions in Panola County, a region at the crossroads of the Mississippi Delta and the Appalachian Foothills.

Expanding Solar Portfolio to Cut Emissions

Microsoft is increasing its use of solar energy to reduce carbon emissions and support communities. Through a partnership with EKOenergy’s Climate Fund, the company helped bring solar-powered refrigeration to a Kenyan fishing village. This provides clean water and ice at lower costs for 2,000 households, reducing food waste and improving livelihoods.

Notably. It’s including community funds in its global renewable energy projects. Apart from investing in Clearloop it has also signed a 366-MW partnership in Ireland with developer Statkraft will help support local needs while expanding clean energy. Some other commitments include:

• Oregon: Microsoft supports the Skyward Community Solar project, producing 3.6 million kWh of clean energy yearly to cut emissions.
• Canada: Partnered with the 37-MW Deerfoot Solar Project, 51% First Nations-owned, providing clean energy and economic benefits.

Carbon Emissions

In 2023, Microsoft expanded its renewable energy portfolio to 19.8 GW across 21 countries. The company also signed agreements to remove 5 million metric tons of carbon over the next 15 years. To tackle emissions, Microsoft is balancing projects with different durability levels.

While Scope 1 and 2 emissions dropped 6.3% from 2020 levels, Scope 3 emissions increased 30.9% due to datacenter expansion and the materials used in construction, like semiconductors and servers. Thus, the tech giant is focusing on reducing Scope 3 emissions as part of its sustainability strategy.

Microsoft is significantly investing in solar projects to move closer to its goal of becoming carbon-negative by 2030. And this newly announced solar deal with play a key role. Furthermore, these projects will match customer electricity use with clean energy. Subsequently, uplifting the communities with better air quality, public health, and economic growth.

• RELATED: Microsoft’s $9 Billion Power Move: Revolutionizing U.S. Clean Energy and Communities

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