Oil and gas giant, BP is planning to significantly reduce its oil and gas production and pour billions of dollars into clean energy as part of a major strategic overhaul unveiled on Tuesday alongside a huge second quarter loss and dividend cut.

According to CNN, the London-based company said it's preparing for a 10-fold increase in annual low carbon investments to $5 billion by 2030 as it works to fulfill its promise of net zero emissions by 2050.

"This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone," BP said in a statement.

BP's oil and gas production is expected to fall by at least one million barrels a day by 2030, a 40% reduction on 2019 levels.

The majority of its annual capital expenditure over the next five years will still be in oil and gas.