Chevron plans to invest $1.5 billion in emission-reduction and alternative energy projects in 2025, a decrease from $2 billion this year.
The company aims to focus on investments that align with its long-term strategy for energy transition.
This reduction in low-carbon investments is more than twice the 11% overall cut to its budget announced on Thursday, according to Bloomberg.
The cutbacks reflect a cooling investment appetite for low-carbon technologies such as offshore wind and hydrogen, which gained attention during the peak of the environmental, social, and governance movement.
Similarly, BP Plc and Shell Plc are shifting focus away from renewables, prioritizing oil and natural gas to bolster cash flow for dividends and share buybacks.
Chevron has not pivoted as strongly toward green energy as its European rivals, and its 2025 low-carbon budget is in line with the company’s long-term plan to invest about $10 billion annually over the next eight years in emission reductions and clean energy expansion.
