Norwegian Oil Giant Equinor Slashes Green Investment Plans as Fossil Fuel Focus Intensifies

Norwegian state-owned oil company Equinor has announced a dramatic reduction in its renewable energy investments, cutting its green spending budget from £8 billion to £4 billion over the next two years. The move signals a significant shift towards increased fossil fuel production, reflecting a broader industry trend of major oil companies retreating from their climate commitments.

The Oslo-based energy giant revealed plans to boost its daily oil production to 2.2 million barrels by 2030, marking a 10% increase from previous targets. This strategic pivot includes the controversial development of Britain’s largest untapped oilfield, Rosebank, despite recent legal challenges questioning the project’s approval.

The company’s renewable energy ambitions have been notably scaled back, with targets for low-carbon energy development reduced to 10-12 gigawatts from the original 12-16 gigawatt goal. This strategic realignment follows similar moves by industry peers Shell and BP, who have also modified their green investment strategies to capitalise on volatile global energy markets.

The Rosebank project, situated off the Shetland coast, remains a focal point of debate within British energy policy. Equinor maintains that the development will generate substantial economic benefits, including £8.1 billion in direct investment and the creation of 1,600 construction jobs, with 450 permanent positions throughout its operational lifetime.

Labour’s energy policy finds itself at a crossroads, balancing climate commitments against economic growth imperatives. The tension between Energy Secretary Ed Miliband’s opposition to the project and Treasury officials’ support for its economic potential highlights the complex challenges facing the UK’s energy transition.

This strategic shift by Equinor reflects a broader industry trend, with TotalEnergies also announcing a 10% reduction in low-carbon spending to £3.6 billion, despite recording its third-highest profit of £12.6 billion in 2024. Environmental campaigners have criticised these industry-wide retreats from renewable commitments, arguing they prioritise short-term profits over climate responsibilities.