Equinor Lowers Green Targets by Citing Rising Costs & Delays

Core Viewpoint - Equinor ASA has reduced its energy transition targets due to rising costs, supply-chain challenges, and changing political priorities, reflecting a broader trend among oil and gas companies reassessing their renewable energy commitments [1][2][5] Group 1: Changes in Renewable Energy Targets - Equinor previously aimed to allocate over 50% of its gross capital expenditure to renewables and low-carbon solutions by 2030 but has scrapped this commitment, citing limited high-value growth opportunities [2] - The company has revised its renewable energy target to 10-12 gigawatts (GW) of installed capacity by 2030, down from the previous goal of 12-16 GW, aligning with similar reductions by peers like BP and Shell [3] - Despite these changes, Equinor remains committed to achieving net zero emissions by 2050 and aims to reduce emissions from operations by 50% by 2030 compared to 2015 levels [4] Group 2: Adjustments in Carbon Intensity Reduction Targets - Equinor has adjusted its carbon intensity reduction targets, now aiming for a 15-20% cut by 2030 instead of 20%, and a 30-40% reduction by 2035 instead of 40% [4] Group 3: Industry Context and Investor Reactions - The recalibrated energy transition plan highlights the complexities of scaling renewable energy investments amid economic and geopolitical pressures [5] - Some investors have welcomed Equinor's strategic shift, while others, such as key investor Sarasin, have exited their positions in the company [3]