BP’s Massive Impairment Signals Bad Times for Net-Zero Spending

BP’s Massive Impairment Signals Bad Times for Net-Zero Spending

This week, BP announced it would take a $4–$5 billion hit to its Q4 earnings from winding down its energy transition business. The announcement followed a similar one from Ford, which said in December it would incur $19.5 billion in losses due to a substantial curtailment of its EV plans. These two are far from the only ones losing money on what was, a few years ago, considered a sure-return investment. And that’s bad news for net-zero plans. BP…

BP and Ford's Scaling Away from Net Zero: A Sign of Shifting Funding Priorities?

In the ever-evolving landscape of the global energy transition, recent moves by major players like BP and Ford signal a potential reevaluation of aggressive Net Zero commitments. As economic pressures mount and profitability takes center stage, these companies’ decisions to scale back investments in renewables and electric vehicles (EVs) could foreshadow a broader pushback against the high costs and uncertain returns of the energy transition. Th…