Shell Unveils Targets and Strategic Shift towards Lower Emissions

By Editor


Shell has released its inaugural energy transition update since the initiation of its Powering Progress strategy in 2021, spotlighting a concerted effort towards emissions reduction. The update, following the Capital Markets Day presentation in June 2023, underlines Shell’s commitment to delivering value with minimized emissions.

With a steadfast goal of achieving net-zero emissions across all its operations and energy products by 2050, Shell’s strategy aligns with the objectives of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels. Wael Sawan, Shell’s Chief Executive Officer, emphasized the pivotal role of energy in human development and expressed optimism about the progress in the energy transition globally.

Wael Sawan articulated Shell’s pivotal role in providing current energy demands while spearheading the transition towards a low-carbon energy system. He highlighted the company’s focus on performance, discipline, and simplification to drive impactful choices through the energy transition, thereby ensuring value creation for investors and customers.

The energy transition plans encompass all facets of Shell’s operations, including the expansion of its liquefied natural gas (LNG) business with reduced carbon intensity, emissions reduction in oil and gas production, and the promotion of low-carbon energy solutions while phasing out sales of traditional oil products.

Noteworthy achievements against climate targets include surpassing 60 percent of the goal to halve emissions from operations by 2030 compared to 2016 levels. Shell maintains its industry leadership in methane emissions reduction, with emissions intensity significantly below targeted levels. Additionally, the company achieved a 6.3 percent reduction in the net carbon intensity of its energy products sold compared to 2016.

In its bid to lead the energy transition, Shell has set ambitious targets to reduce customer emissions from oil product usage by 15-20 percent by 2030. The company plans to prioritize value in its integrated power business, focusing on select markets and segments while investing significantly in low-carbon energy solutions such as electric vehicle charging, biofuels, renewable power, hydrogen, and carbon capture and storage.

Shell’s investment of $10-15 billion between 2023 and 2025 in low-carbon energy solutions underscores its commitment to the energy transition. The company aims to scale new technologies to affordability, advocate for policies supporting national net-zero ambitions, and drive changes in energy demand towards sustainable solutions.

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