TotalEnergies, an energy company headquartered in Paris, has become the latest fossil fuel giant to retreat from its climate commitments, citing disappointing results from its French renewable energy investments.
In the latest example of a fossil fuel company backsliding on climate, the energy multinational–which is one of the world’s seven “supermajor” oil companies–warned of potential cuts to its wind and solar initiatives.
Speaking at the Union of the French Electricity Industry’s annual conference on December 10, CEO Patrick Pouyanné criticised France’s regulatory environment, saying that it hindered investment and slowed progress toward reindustrialisation and decarbonisation goals.
“I have 500 renewable energy developers in France who are struggling to build 300 to 400 megawatts a year,” complained Pouyanné.
He highlighted differences between investments in the European Union and the United States.
“In the United States, I built two gigawatts in one year,” whereas in France, “I can’t keep investing, having so many people costing me money for such a low return,” he said.
He also noted differences within European countries, saying that in approving projects Germany was “twice as fast”.
The lack of consistency in Europe’s green transition and return on investment may push TotalEnergies to pull back investment in France, argued Pouyanné.
Speaking to Brussels Signal, a European Commission spokesperson said it was committed to supporting all member states in achieving their offshore wind power goals.
The spokesperson said with the introduction of the Critical Raw Materials Act, the European Union had ensured access to a secure, diversified, affordable and sustainable supply of critical raw materials, including the permanent magnets needed for offshore wind turbines.
Despite these efforts, reality remains challenging for Europe’s renewable energy sector. France is not alone in struggling to attract investment from major industry players.
On December 5, Denmark faced a setback when its largest offshore wind farm project in the North Sea failed to secure investors during its tender process.
The Danish wind industry has taken a hit after not a single bid was received for tenders for three offshore wind farms in the North Sea. https://t.co/l7TYx33jvZ
— Brussels Signal (@brusselssignal) December 6, 2024
In August, Swedish media reported Europe’s largest wind power plant, Markbygden Ett, was unprofitable and had piled up hundreds of millions of euro in losses.
France’s TotalEnergie is not the only oil giant threatening to reduce its renewable investments due to drops in profitability.
British multinationals BP and Shell also have put brakes on renewable energy because of drops in profitability.
On December 9, BP announced it would “significantly reduce” investment in renewable energy through to 2030 as it combines its offshore wind business with Japanese company Jera.
Ever since 2020, the London-based oil and gas company has backtracked from its green engagement.
In 2020, BP’s then-CEO, Bernard Looney, had pledged to cut the company’s oil output by 40 per cent.
By 2023, it had scaled back to 25 per cent.
Another British oil company, Shell, also announced stepping back from new offshore wind investments.
On December 5, its chief executive Wael Sawan announced his Anglo-Dutch oil major would reduce its investment in the offshore wind farm business, too.
Sawan said investment in oil and gas “will be needed” due to sustained demand for fossil fuels.
In March, Shell also weakened its 2030 carbon reduction target and scrapped what it now called a “perilous” 2035 objective.
Initially, the company had aimed to reduce net carbon by 20 per cent between 2016 and 2030. The goal is now set at a lower range, between 15 and 20 per cent.
Sweden’s Markbygden Ett, Europe’s largest wind-power plant, has lost more than €322 million since its start-up and between 2017 and 2023. https://t.co/tHldcckSwI
— Brussels Signal (@brusselssignal) August 1, 2024
