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JPMorgan Warns Oil Industry Faces Huge Costs to Reach Climate Goals

  • Largest European oil companies must double new energy spending
  • Total, others will have to raise overall capex, JPMorgan says
Bloomberg business news
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Europe’s largest oil companies must roughly double the amount of money they’re now dedicating to “new energies” by the end of the decade to meet key climate targets, according to a report from JPMorgan Chase & Co. that suggests the challenge facing the fossil fuel industry has been vastly underestimated.

In some cases, to achieve emission reduction goals, or protect their portfolios against future declines in oil demand, companies such as Total SA will have to raise their overall capital expenditure budgets. If the sector does double what it dedicates to clean fuels by 2020, it will still need to double it again within five years, or risk losing credibility in discussions about climate change.