Equinor Lowers Green Targets by Citing Rising Costs & Delays

Equinor ASA EQNR has scaled back its energy transition targets, citing rising costs, supply-chain hurdles and shifting political priorities. The move reflects broader struggles in the industry as oil and gas majors reassess their renewable energy commitments.Equinor, the Norwegian energy giant, had previously pledged to allocate more than 50% of its gross capital expenditure to renewables and low-carbon solutions by 2030. However, the company scrapped this commitment in February, citing limited high-value growth opportunities. CEO Anders Opedal emphasized that geopolitical tensions have led governments to prioritize defense spending over energy transition investments, further complicating the sector's development.Equinor has revised its renewable energy target to 10-12 gigawatts (GW) of installed capacity by 2030, down from the previous 12-16 GW goal. This reduction aligns with similar moves by oil and gas peers such as BP plc and Shell plc, both of which have scaled back their low-carbon energy ambitions. While some investors have welcomed Equinor’s strategy shift, others, like key investor Sarasin, have exited their positions in the company.Despite the changes, Equinor remains committed to achieving net zero emissions by 2050. The company is sticking to its target of reducing emissions from its operations by 50% by 2030, compared to 2015 levels. However, it has adjusted its carbon intensity reduction targets, now aiming for a 15-20% cut by 2030 instead of 20%, and a 30-40% reduction by 2035 instead of 40%.Equinor’s recalibrated energy transition plan highlights the complex realities of scaling renewable energy investments while balancing economic and geopolitical pressures.EQNR’s Zacks Rank & Other Key PicksEQNR currently carries a Zacks Rank #2 (Buy).Investors interested in the energy sector may look at some other top-ranked stocks like Archrock Inc. AROC, NextDecade Corporation NEXT and Oceaneering International, Inc. OII. Archrock presently sports a Zacks Rank #1 (Strong Buy), and NextDecade and Oceaneering carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report NextDecade Corporation (NEXT): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks