(Bloomberg) -- Chevron Corp. is cutting low-carbon investments by one-fourth as the oil explorer trims spending across the board and prioritizes profits over energy output.
Chevron plans to spend $1.5 billion on 2025 emission-reductions efforts and alternative energy initiatives, down from $2 billion this year, according to a statement. The reduction in low-carbon projects is more than twice the 11% cut to overall outlays announced late Thursday.
The belt tightening comes as the investment appetite cools for low-carbon technologies like offshore wind and hydrogen that were championed in recent years during the height of the environmental, social and governance movement. BP Plc and Shell Plc are pivoting away from renewables to focus more on oil and natural gas as they seek to shore up cash flow for dividends and buybacks.
Chevron never pivoted as hard toward green energy as European rivals and its 2025 low- carbon budget appears consistent with the company’s long-term plan to spend an average of roughly $10 billion annually on curbing emissions and expanding clean-energy production over eight years.
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