LONON, U.K.: British Petroleum is set to abandon its ambitious renewable energy expansion targets in favor of a stronger focus on fossil fuels, according to sources familiar with the company's new strategy.

The shift, which will be announced at BP's capital markets day this week, comes as the energy giant faces mounting pressure from investors concerned about lagging earnings.

CEO Murray Auchincloss will confirm that BP is dropping its goal to increase renewable power generation capacity to 50 gigawatts (GW) by 2030—a target that would have required a 20-fold expansion from 2019 levels. BP has only achieved 8.2 GW in renewable capacity so far.

The decision marks a significant departure from BP's previous climate-focused commitments, initially set under former CEO Bernard Looney. In 2020, BP pledged to reduce oil and gas production by 40 percent while aggressively expanding renewables. That target was later revised to a 25 percent reduction, and now, the company is moving further away from its green energy plans.

BP has struggled with underperformance in comparison to its rivals, and its renewable investments have not delivered the financial returns expected by shareholders. In October, BP scrapped its target to cut overall oil and gas output by 2030, signaling a broader strategic realignment.

Pressure from activist investor Elliott Investment Management has played a key role in BP's policy shift. Elliott, which has built up a nearly five percent stake in the company, has been pushing for tighter cost discipline and a reduction in BP's green energy spending. Sources indicate that the investment firm has also suggested that BP sell assets such as its wind and solar projects, Castrol lubricants business, and service station network to unlock shareholder value and fund share buybacks.

BP is expected to announce reductions in its annual low-carbon capital expenditures, with analysts at Bank of America predicting cuts of US$2 billion to $3 billion. In 2024, BP's capital spending was $16.24 billion, with a significant portion directed toward renewable initiatives.

The decision aligns BP with other major energy firms that have scaled back their green ambitions amid rising fossil fuel prices and shifting political landscapes. The re-election of U.S. President Donald Trump, a strong advocate for oil and gas, has further emboldened companies to prioritize traditional energy sources over renewables.

As part of its new strategy, BP will also revise its financial targets. Instead of aiming for $49 billion in core earnings (EBITDA) this year, the company will set a more flexible annual percentage growth target.

The upcoming announcement will formalize BP's return to a fossil fuel-driven business model, marking a significant shift away from the renewable energy expansion it once championed.