TotalEnergies Holds Its Course: Clean Energy Ambitions Endure In The Midst Of Industry Retreat

French oil major maintains dual-track strategy as BP and Shell scale back on climate goals


As energy giants across Europe reassess their green commitments in the face of volatile markets and investor pressure, TotalEnergies is standing apart. The French oil and gas group is refusing to follow its peers in scaling back climate pledges, maintaining a commitment to grow both its fossil fuel business and its investments in renewables. In a sector marked by sudden U-turns, TotalEnergies is doubling down on its belief that a balanced, long-term strategy is the most resilient path forward.

While rivals such as BP and Shell have softened their stance on emissions targets and slowed their shift away from hydrocarbons, TotalEnergies continues to expand its clean energy portfolio—even as it pushes ahead with new oil and gas developments. The result is a dual-track approach: one that may raise questions, but also signals strategic conviction at a time of widespread uncertainty.


A Distinct Strategic Direction


At the heart of TotalEnergies’ approach is the belief that fossil fuels and low-carbon energy are not mutually exclusive in the short- to medium-term. Under CEO Patrick Pouyanné, the company has articulated a clear strategy: continue to grow in oil and liquefied natural gas (LNG) to meet global energy demand, while simultaneously building a robust and scalable renewables business.

Pouyanné has repeatedly emphasised that energy transition must be pragmatic, particularly in light of rising global energy needs. In this view, oil and gas will remain essential for decades, and profits from hydrocarbons can be used to finance the company’s move into solar, wind, and low-carbon electricity.

The French firm rebranded from Total to TotalEnergies in 2021 as a public signal of its transformation. While the company is not abandoning hydrocarbons, it is aiming for net-zero emissions across its operations by 2050—albeit with different interim milestones than its peers.


Rivals Retreat from Climate Ambitions


The contrast with BP and Shell is stark. Both UK-based majors have recently revised their decarbonisation strategies, citing the need to prioritise shareholder returns and adapt to new market realities. BP reduced its 2030 emissions reduction target and increased investment in oil and gas production. Shell similarly abandoned plans to cut oil output annually, arguing that higher fossil fuel revenues are necessary to fund its transition.

These reversals come amid growing political resistance to aggressive climate targets, especially in the US and parts of Europe. Shareholder dissatisfaction with underperforming renewable divisions and concerns about energy security following the Russia-Ukraine war have also played a role.

In this shifting landscape, TotalEnergies is notable for holding its ground.


Why TotalEnergies Is Staying the Course


There are several reasons why TotalEnergies is maintaining its position. Firstly, the company operates within the EU’s policy framework, where regulations and incentives continue to favour long-term decarbonisation. France’s political environment remains broadly supportive of climate goals, giving TotalEnergies some cover to pursue its transition strategy without major domestic backlash.

Secondly, the company’s financial model is structured to support its energy diversification. By using cash flow from oil and LNG operations—especially profitable amid high global prices—TotalEnergies is able to invest heavily in its power and renewables division without relying solely on external capital.

The company is also keenly aware of the regulatory and reputational risks of abrupt strategy changes. Rather than chase short-term market sentiment, TotalEnergies appears to be betting on sustained credibility and gradual, consistent execution. Its stated goal is to have renewables and electricity make up 40% of its capital expenditure by 2030—compared to around 25% today.


Progress on Renewable Projects


TotalEnergies has made significant strides in its clean energy business over the past two years. It currently holds over 20 GW of gross renewable capacity in operation or under construction, including solar farms in India and Spain, offshore wind projects in the UK and South Korea, and battery storage ventures in the United States.

The company is also expanding into electricity distribution and trading, positioning itself as a major player in the power market. In parallel, it is investing in biofuels, carbon capture and storage (CCS), and green hydrogen—technologies that are expected to complement its broader transition goals.

Its renewable energy assets are increasingly seen as commercially viable, with returns approaching those of conventional oil projects in certain markets.


Market and Shareholder Response


Despite some initial scepticism, TotalEnergies’ strategy has been relatively well received by investors. While the company faces scrutiny from climate activists and NGOs, it has avoided the level of shareholder revolt experienced by BP and Shell.

Investors appear to value the company’s stability and clarity of direction, especially in a sector where policy risk and regulatory volatility are high. Analysts note that TotalEnergies’ integrated approach—using fossil fuel profits to fund renewables—offers a hedge against energy transition risk without sacrificing near-term profitability.

At the same time, the company has not been immune to broader market pressures. Share price performance has tracked other oil majors, and questions remain about the scalability of its renewables business in competitive global markets.


Challenges Remain


Balancing fossil fuel growth with a clean energy transition presents inherent trade-offs. TotalEnergies continues to develop major oil and gas fields, including projects in Uganda, the UAE, and the Arctic. These investments have drawn criticism from environmental groups, who argue that expanding fossil infrastructure is incompatible with climate goals.

Managing these contradictions—especially as climate scrutiny intensifies—will be a persistent challenge. There are also operational complexities in running two parallel business models with different risk profiles, regulatory demands, and return timelines.

Yet unlike peers who have scaled back their ambitions, TotalEnergies is choosing to manage those complexities rather than retreat from them.


Conclusion


In an industry increasingly defined by reactive strategy shifts and investor mood swings, TotalEnergies stands out for its consistency. While rivals recalibrate their energy transitions under pressure, the French firm is sticking to a long-term path—balancing hydrocarbons with an expanding renewables business.

This dual-track strategy is not without tension, but it reflects a realistic view of global energy needs and market conditions. If the transition to clean energy proves to be slower and more volatile than many hoped, TotalEnergies’ diversified approach may prove more resilient—and ultimately more credible—than its competitors’ reversals.


Author: Brett Hurll

RECENT NEWS

Copper's Comeback: Inside BHP And Lundin's Argentine Asset Acquisition

Copper, often dubbed "the metal of electrification," is experiencing a resurgence in demand due to its critical role in ... Read more

Revitalizing Commodities: How Clean Energy Is Breathing New Life Into A Stagnant Market

The commodities market, traditionally a cornerstone of investment portfolios, has experienced a decade of stagnation. Ho... Read more

European Airports Disrupted By Escalating Climate Protests

Climate activists have escalated their protests at European airports, blocking runways and causing flight disruptions in... Read more

Hungary's Russian Oil Dilemma: Why Brussels Is Cautious In Offering Support

Hungary's reliance on Russian oil has led it to seek support from Brussels to ensure continued access to this crucial en... Read more

Unveiling China's Secret Commodity Stockpiles: What Lies Ahead?

Xi Jinping's extensive reserves of grain, natural gas, and oil hint at future challenges.In a move shrouded in secrecy, ... Read more

Copper Miners Brace For Industry Overhaul As End Users Seek Direct Deals

The copper mining industry is bracing for a significant overhaul as end users, including cable manufacturers and car com... Read more