In a significant shift, major oil companies are reevaluating their commitments to green energy amid mounting political and legal backlash against ESG initiatives, particularly in the United States. This growing anti-ESG movement, marked by hundreds of bills introduced across U.S. states and reinforced by recent federal policy rollbacks, has made low-carbon investments riskier and less financially appealing for traditional energy firms.

ExxonMobil, for instance, recently halted development on one of the world’s largest planned low-carbon hydrogen projects, citing weak federal incentives. Similarly, Shell canceled a hydrogen facility in Norway, while Equinor paused its blue hydrogen efforts due to the lack of market readiness.

BP is also stepping back from earlier climate commitments. The company is slowing its reduction in oil and gas investment, increasing spending on Liquefied Natural Gas (LNG), and redirecting focus toward biofuels and hydrogen. It also exited a major green hydrogen project in Australia, signaling a cautious pivot away from higher-risk clean tech ventures.

This strategic retreat reflects more than just financial caution: it illustrates how political resistance to ESG is reshaping the energy transition timeline. The current environment has made it harder for companies to justify large-scale investments in low-carbon solutions, especially when incentives are uncertain and market demand is still developing.

While many oil majors still maintain long-term net-zero goals, they are increasingly prioritizing shorter-term projects with quicker returns and fewer regulatory complications. The shift suggests that until policy supports stabilize and market conditions mature, the pace of corporate investment in renewable energy and low-carbon technologies may continue to slow.

For sustainability advocates, the trend is concerning. It shows the need for consistent policy frameworks, stronger financial incentives, and broad public support to ensure that climate goals aren’t sidelined by political headwinds. Without these elements, the energy transition risks being delayed just as momentum is critically needed.

Source:

https://oilprice.com/Energy/Energy-General/Oil-Majors-Rethink-Green-Projects-Amid-Anti-ESG-Push.html