First decline in eight years! Global oil and gas giants' green investment spending in 2025 plunges more than 30%

The world's largest oil and gas companies reduced their investments in energy transition in 2025, marking the first annual decline in eight years. According to a report released on Wednesday, the spending on low-carbon technologies by oil and gas giants decreased by over one-third in the past year, dropping from over $38 billion in 2024 to $25.7 billion. Low-carbon expenditure accounted for 6.5% of the total capital expenditure of these companies, compared to nearly 10% in the previous year. Analysts point out that this is the lowest ratio in five years. Not all companies have reduced their spending related to energy transition. Repsol and Saudi Aramco are the biggest investors in low-carbon technologies in 2025, with both companies committing to invest around $4 billion, an increase from the previous year. Overall, oil and gas companies are tightening their investment budgets to meet investor demands, while focusing more on their core fossil fuel businesses. This trend is particularly prominent in the Americas, where the policy shift by U.S. President Trump has hindered investment in renewable energy. The region saw the biggest decrease in spending. Analysts wrote in the report, "Since early 2025, policy fluctuations by the Trump administration - including permit delays and shutdowns - have significantly increased the execution risks of capital-intensive offshore wind projects." They added that investment by oil and gas giants is expected to continue slowing down in the coming years.