Energy
Friday, March 15th, 2024 3:48 am EDT
Key Points
- Shell announces moderation of near-term carbon emissions cuts while maintaining net-zero pledge by 2050.
- Revised target aims to reduce net carbon intensity on third-party product use by 15% to 20% by 2030, dropping previous 20% goal.
- Shell drops goal of 45% reduction by 2035 due to “uncertainty in the pace of change in the energy transition,” emphasizing strategic shift in power business towards select markets and segments.
British oil company Shell announced adjustments to its near-term carbon emissions reduction goals while reiterating its commitment to achieving net-zero status by 2050. The company revised its target for reducing net carbon intensity related to the use of its products by third parties, aiming for a 15% to 20% reduction by 2030, down from the previous 20% target. Additionally, Shell dropped its goal of a 45% reduction by 2035, citing uncertainty in the energy transition pace. CEO Wael Sawan noted a strategic shift in the power business towards specific markets and segments, leading to a lower growth expectation in overall power sales, influencing the adjusted carbon intensity target. By the end of 2023, Shell had accomplished over 60% of its target to halve emissions from its operations by 2030 compared to 2016. The company also achieved its target of reducing net carbon intensity of energy products sold last year by 6.3% compared to 2016, marking the third consecutive year of hitting the target. Shell set a new target to decrease customer emissions from product use by 15% to 20% by the end of the decade compared to 2021. This update aligns with the broader trend of European energy majors refining their strategies in transitioning to clean energy technologies. Meanwhile, activist investors have criticized Shell’s decision, expressing concerns about its alignment with the Paris Agreement’s emission reduction goals and accusing the company of prioritizing fossil fuels. Despite this, Shell remains committed to its net-zero pledge and plans to invest $10 billion to $15 billion in low-carbon solutions between 2023 and 2025. As Shell reassesses its emissions targets, its stock remained relatively stable, with a slight increase on the announcement day, while its year-to-date performance showed a marginal decline.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/14/oil-giant-shell-waters-the-down-pace-of-its-near-term-emission-cuts.html
