Energy giant BP signals major strategy shift with $5 billion write-down — here's why it matters

After a brief foray into clean energy, BP has decided to refocus on oil and gas.

What's happening? 

As The Guardian reported, BP had pledged to go net zero by 2050. However, its business practices paint a different picture.

Under the guidance of BP's new chair, Albert Manifold, the company has written down the value of its clean energy business by about $5 billion. 

BP has also cancelled its hydrogen projects in the U.K., Oman, and Australia, and is trying to sell a stake in its solar business, Lightsource.

This is just one development in a series of recent decisions by company executives. In 2024, BP sold its U.S. onshore wind energy company. That same year, BP's CEO shared the company's plans to invest more in oil and gas, increasing oil output by about 2% to 3% annually up to 2027.

Why is BP's pivot concerning?

BP is one of several big oil companies abandoning its cleaner energy promises. Shell, for example, scaled back its pledge to reduce pollution, while simultaneously growing its liquefied natural gas business.

This pivot will have a deadly impact on human health.

According to the Global Climate and Health Alliance, those exposed to air pollution caused by oil, gas, and coal production often develop asthma, heart disease, and cancer. In fact, a 2021 study published in the journal Environmental Research estimated that over 10 million people worldwide died prematurely from exposure to such pollution in 2012 alone.

That's not to mention that burning these fuel sources releases planet-warming pollution into the atmosphere, which in turn causes rising global temperatures that exacerbate extreme weather conditions. 

What's being done about it?

Despite BP's apparent reluctance to enter the fold, clean energy is on the rise.

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A 2025 report revealed that the clean energy sector will reach $2.2 trillion this year, while a 2024 study found that solar photovoltaics, which convert solar power into electricity, are cheaper than coal and gas.

Whether BP will take advantage of these opportunities remains to be seen.

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