A recent comprehensive study conducted by the Institute of Environmental Science and Technology at the Universitat Autònoma de Barcelona (ICTA-UAB) delivers a sobering assessment of the fossil fuel industry’s role in the global energy transition. Despite widespread claims of proactive engagement in renewable energy development, the world’s largest oil and gas corporations are responsible for a remarkably marginal share—only 1.42%—of renewable energy projects worldwide. This revelation challenges the long-standing narrative that these entities are key agents in combating climate change through significant investment in green energy portfolios.
The research, published in the prestigious journal Nature Sustainability, leverages a rigorous data analysis approach utilizing extensive datasets from Global Energy Monitor. The study focuses on the 250 largest oil and gas producers, which collectively account for approximately 88% of global hydrocarbon production. Within this cohort, the study identifies a total of 3,166 unique renewable energy projects encompassing wind, solar, hydroelectric, and geothermal sectors. These projects are linked to the fossil fuel companies either directly, through subsidiaries, or via acquisitions, painting a detailed picture of corporate involvement—or lack thereof—in the renewable energy landscape.
One of the most striking findings is the sparse involvement of these companies in operational renewable energy projects. Only about 20% of the analyzed firms have at least one renewable energy project in operation, underscoring a pronounced hesitancy to diversify beyond their core fossil-based activities. Furthermore, renewable energy production constitutes a mere 0.1% of the total energy extraction capacity of these companies, making their green endeavors almost negligible within their broader business activities.
This underwhelming renewable energy footprint becomes even more pronounced when juxtaposed against the industry’s public commitments to reducing greenhouse gas emissions. Approximately 25% of the top 100 fossil fuel firms have set emission reduction targets with an average pledged cut of 43% by 2030, as reported by Zero Carbon Analytics. However, the disconnect between aspirational emissions goals and actual investment in clean energy projects calls into question the sincerity and feasibility of these commitments.
Marcel Llavero-Pasquina, lead researcher and environmental scientist at ICTA-UAB, articulates the core critique of the fossil fuel industry’s approach: the deployment of renewable energy projects by these companies is largely anecdotal and insufficient to address the climate emergency. He emphasizes that genuine contribution to climate mitigation should be measured by the volume of fossil fuels left unextracted rather than the token renewable projects showcased for public relations purposes.
This exposes a fundamental tension within climate and energy policy discussions, particularly for governments, academic institutions, and environmental organizations. The findings suggest that continued engagement with fossil fuel companies under the impression that they are vital players in achieving a low-carbon future may be misguided. The data-driven insights indicate the need for a reevaluation of such partnerships and raise concerns about the fossil fuel industry’s potential influence over policy decisions related to climate action.
Llavero-Pasquina further advocates for a decisive shift in how policymaking bodies and institutional stakeholders approach fossil fuel enterprises. Instead of granting these companies a “seat at the table” in climate and energy dialogues, there should be a candid acknowledgment of their systemic role as contributors to the ongoing climate crisis. Such a stance calls for stringent regulatory frameworks and divestment from fossil assets, paving the way for truly sustainable energy transitions.
Julia Steinberger, a professor of ecological economics at the University of Lausanne, Switzerland, concurs with these conclusions, reinforcing that the fossil fuel industry’s public commitments often amount to greenwashing efforts. Her assessment highlights that despite evocative slogans such as “Liar, liar, planet on fire,” fossil fuel lobbyists and affiliated think tanks continue to exert significant influence over political processes, thereby undermining genuine climate action.
The analysis conducted by Global Energy Monitor, represented by Project Manager Kasandra O’Malia, also supports this critical perspective. She notes that the fossil fuel industry’s declarations of investing in renewables are largely superficial, failing to translate into substantial capital allocation towards clean energy infrastructures. This discrepancy between proclaimed intentions and actual financial commitments contributes to the propagation of misleading narratives aimed at maintaining the industry’s social license to operate.
This study’s implications are profound within the context of the global energy crisis and ongoing efforts to curb carbon emissions. Despite technological advancements in renewable energy and cost reductions in solar and wind power, the entrenched business models of oil and gas giants continue to center around fossil fuel extraction. Until these multinational corporations undertake genuine transitions—decarbonizing their capital expenditure and downsizing fossil fuel production—the energy sector’s trajectory will fall short of the emissions targets aligned with the Paris Agreement.
Furthermore, the research underscores the critical need for transparency in public communications from fossil fuel companies regarding their renewable energy strategies. Stakeholders including investors, policymakers, and the public must be equipped with accurate assessments to discern between superficial environmental claims and substantive climate action. Such clarity is essential to mobilizing effective regulatory interventions and fostering equitable transitions to sustainable energy systems worldwide.
Beyond ethical concerns, the fossil fuel industry’s marginal involvement in renewables also raises technical and financial questions about scalability and innovation in clean energy. Investments in wind, solar, hydro, and geothermal ventures require significant resources, infrastructure development, and expertise that these companies are currently failing to prioritize. This reticence hampers global progress towards decarbonization and delays the deployment of critical technologies needed to stabilize the climate.
Ultimately, the ICTA-UAB study punctuates a pivotal moment in energy discourse, calling for a reexamination of fossil fuel companies’ roles and responsibilities in the climate crisis. It serves as a data-backed rebuttal to corporate narratives that position oil and gas firms as leaders in green energy, emphasizing instead the need for transformative systemic change in global energy policy and corporate governance.
Subject of Research:
Not applicable
Article Title:
Oil and gas industry’s marginal share of global renewable energy.
News Publication Date:
9-Oct-2025
Web References:
http://dx.doi.org/10.1038/s41893-025-01647-0
Keywords:
Fossil fuels, Coal, Natural gas, Petroleum, Climate change, Climate change adaptation, Environmental impact assessments, Nonrenewable resources, Renewable resources, Mineral resources, Coal resources, Petroleum resources, Sustainable energy, Carbon emissions
