Varo to Stop Making Diesel From Crude in Effort to Cut Emissions

European refiner Varo Energy BV will stop producing diesel from crude oil by 2040 as part of a $3.5 billion strategy aimed at eliminating carbon emissions.

Varo is among fuel processors and retailers investing in low-carbon products as consumers and investors demand greater efforts to tackle climate change. That push has only increased as oil-supply concerns drive costs for gasoline and diesel to record-highs, prompting governments to promote cleaner fuels.

Varo, backed by trading giant Vitol Group and private equity firm Carlyle Group Inc., already supplies biofuels, but will be ramping up its own output after installing facilities at its ...