A new report reveals that the world's largest oil companies collectively earned record profits in 2025, even as global carbon dioxide emissions reached unprecedented levels, intensifying the climate crisis.
Record Profits for Oil Giants
According to the analysis by the Institute for Energy Economics and Financial Analysis (IEEFA), the combined net income of the top five oil majors—ExxonMobil, Shell, BP, Chevron, and TotalEnergies—soared to $280 billion in 2025, a 35% increase from 2024. This surge was driven by high crude prices and increased production, despite growing international pressure to transition to renewable energy.
ExxonMobil alone posted a net profit of $75 billion, its highest ever, while Shell reported $68 billion. The companies have faced criticism for using record earnings to boost shareholder payouts rather than investing heavily in clean energy.
Emissions Hit New High
Concurrently, the Global Carbon Project reported that global CO2 emissions from fossil fuels rose by 2.1% in 2025, reaching 40.5 billion tonnes. This marks the highest level ever recorded, pushing the planet further off track from Paris Agreement goals to limit warming to 1.5°C.
“The disconnect between industry rhetoric and reality is stark,” said Dr. Fatima Birol, an energy analyst at IEEFA. “While these companies claim to support the energy transition, their business models remain overwhelmingly reliant on expanding fossil fuel production.”
Investor and Activist Backlash
The report has reignited debate over the role of oil companies in climate change. Activist groups are calling for stricter regulations and windfall profit taxes. In Europe, the European Commission is considering a temporary levy on oil companies' excess profits to fund climate adaptation measures.
Meanwhile, some institutional investors are pressing for more ambitious climate action. The Climate Action 100+ initiative, representing over $60 trillion in assets, has urged oil majors to align their strategies with net-zero emissions by 2050.
Government Response
Several governments have announced new policies in response to the findings. The United States is proposing to eliminate tax subsidies for fossil fuel companies, while the United Kingdom is exploring a permanent windfall tax on oil and gas profits. However, industry lobby groups argue that such measures could undermine energy security and investment.
The IEEFA report concludes that without immediate and decisive action, the gap between climate goals and corporate behavior will continue to widen, with dire consequences for the planet.
