BP announced a $4-$5 billion hit to Q4 earnings from winding down its energy transition business, following Ford’s $19.5 billion loss from EV plan cutbacks. This trend of supermajors divesting from transition industries is concerning for net-zero plans and raises doubts about the profitability of low-emission energy investments.

BP and Shell have both reported billions in impairment charges from underperforming low-carbon businesses, leading to divestments and a focus on core oil and gas operations. Despite ongoing investment in wind and solar power, global low-carbon energy investment has slowed down, signaling challenges in the transition to renewable energy sources.

The decline in renewable energy investments is attributed to factors like Trump’s policies, blackouts, negative electricity prices, and wind droughts. The failure of transition technologies to meet expectations is causing investors to rethink their support for wind, solar, and EVs without subsidies, highlighting the need for further development in these industries.

The challenges faced by the energy transition industry are becoming more pronounced due to issues like blackouts, negative electricity prices, and wind droughts. These challenges are impacting investor confidence in transitioning to renewable energy sources and raising questions about the viability of these technologies without subsidies.

Read more at Yahoo Finance: BP’s Massive Impairment Signals Bad Times for Net-Zero Spending