The world’s largest oil and gas companies control only 1.42% of renewable energy projects globally despite years of pledging to lead the energy transition, according to research published Thursday in Nature Sustainability.
The study from the Institute of Environmental Science and Technology at Universitat Autònoma de Barcelona analyzed the 250 largest oil and gas producers, which together account for 88% of global hydrocarbon output. Researchers identified 3,166 wind, solar, hydro and geothermal projects in which these companies hold stakes, whether directly, through subsidiaries or via acquisitions.
Only 20% of the 250 companies examined own an operational renewable energy project, with renewables representing a mere 0.1% of their primary energy extraction, according to the findings.
Marcel Llavero-Pasquina, lead author and postdoctoral researcher at ICTA-UAB, said oil and gas companies’ renewable deployment is anecdotal at best. Their contribution to fighting climate crisis should be judged solely by how much fossil fuel they leave in the ground, he argued.
The research draws on data from Global Energy Monitor, a nonprofit tracking energy infrastructure projects worldwide. The analysis challenges industry narratives positioning fossil fuel companies as key players in tackling climate change through green energy investments.
American oil and gas companies have effectively no renewable assets, according to Llavero-Pasquina. The geographic distribution shows 32% of renewable assets in Europe, another 32% in North America, and 32% in South Asia.
For Africa, just 1.5% of global renewable energy capacity sits on the continent, totaling nearly 70 gigawatts. Fossil fuel companies hold stakes in only 2.8% of this already small share, the study found.
Among the top 100 oil and gas companies, almost a quarter have set greenhouse gas reduction targets for 2030, with average commitments of 43% cuts in their own operations, according to Zero Carbon Analytics. However, these targets typically exclude emissions from burning the fossil fuels they produce, which constitute the vast majority of total emissions.
Julia Steinberger, professor at University of Lausanne, said the study confirms what is already known about oil, gas and coal industries. Despite green slogans, they are failing entirely in their transition to clean energy, she noted, warning that fossil fuel lobby groups and think tanks continue influencing politicians.
Kasandra O’Malia, Project Manager for Global Solar Power Tracker at Global Energy Monitor, described claims about oil and gas investment in renewables as greenwashing. The companies simply aren’t investing like they’ve pledged, she said.
The findings raise questions for institutions and organizations that engage with fossil fuel companies under assumptions they are key energy transition players. Llavero-Pasquina said after decades of empty words, governments, universities and public institutions should recognize the fossil fuel industry will always be part of the problem, not the solution to climate crisis.
He argued oil and gas companies should not have seats at tables where climate and energy policy futures get decided.
The research comes as renewable energy costs have dropped dramatically. Over 90% of new renewable projects are now cheaper than fossil fuel alternatives, with solar and offshore wind respectively 41% and 53% cheaper than fossil fuels, according to United Nations data.
Major oil companies including Shell, ExxonMobil, BP and TotalEnergies have promoted renewable transition messaging through social media and advertising campaigns in recent years. However, their actual capital expenditure on renewables remains a small fraction of overall investment budgets.
Industry defenders argue oil and gas companies bring technical expertise, financial resources and global reach that could accelerate renewable deployment if properly directed. Critics counter that fossil fuel business models fundamentally conflict with rapid decarbonization, creating inherent contradictions in transition claims.
No regulation currently forces fossil fuel companies to invest in renewable energy, the researchers noted. Most renewable energy deployment comes from dedicated renewable developers, utilities, and independent power producers rather than fossil fuel companies.
The study focused exclusively on project ownership and stakes rather than financial investments or partnerships that don’t involve equity positions. This methodology captures direct involvement but may undercount some forms of renewable energy engagement.
Whether fossil fuel companies should play roles in energy transition remains contested. Some argue their exclusion wastes resources and expertise, while others see their participation as延緩 genuine transition by maintaining fossil fuel incumbent power.
The Nature Sustainability paper adds to growing evidence that fossil fuel industry climate commitments often don’t match actions. Previous analyses have shown oil and gas companies continue investing predominantly in hydrocarbon exploration and production while renewable spending remains marginal.
Source: newsghana.com.gh
