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Shell has watered down some climate targets to accommodate its plans to continue growing its massive natural gas business, even as it commits to cutting emissions to net zero by 2050.
In the first three-year review of its Energy Transition plan, due to launch in 2021, the energy giant said the net carbon intensity of its products will fall more slowly than under previous plans.
Carbon intensity is not a commitment to reducing absolute emissions from burning fossil fuels, but an accounting treatment that allows Shell to offset its growing sales of low-carbon products with the carbon produced by its oil and gas operations.
Shell has previously said that the net carbon intensity of its energy products will fall by 20% from 2016 levels by 2030, 45% by 2035, and reach net zero by 2050.
The company said on Thursday it was now targeting a 15% to 20% decline by 2030 and would abandon its interim 2035 target.
Meanwhile, Shell has set out its ambition to reduce absolute emissions from its petroleum products by 15% to 20% by 2030 compared with 2021 levels. Shell said this would be a 40% reduction from 2016.
The change in targets reflects Chief Executive Officer Wael Sawan's plan to make Shell a leaner, more energy-intensive company by keeping oil output flat, increasing liquefied natural gas sales and becoming more selective about the types of low-carbon energy products it sells. Disciplined business.
“We believe this focus makes it more likely that we will achieve our climate goals,” he said.
The company said its 2021 commitment to reduce absolute emissions from its operations by 50% by 2030 remains unchanged, adding that emissions from these operations had already fallen by 31%.
Despite Shell's commitment to reducing customers' oil-related emissions, the change in Shell's carbon intensity target is likely to draw criticism, especially from groups that already believe the company is not doing enough to reduce its environmental impact. Shell currently has no medium-term targets for reducing emissions between 2030 and 2050.
“This backtracking removes any doubt about Shell's intentions: the company wants to stay in the fossil fuel sector for as long as possible,” said Mark van Baal, founder of activist group Follow This, which regularly reports to Shell has submitted a shareholder motion calling on the company to cut oil production. Emissions occur faster.
Even before the changes, a Dutch court ruled that Shell's original targets were not ambitious enough, directing the company to reduce all emissions by 45% in absolute terms by 2030. Shell has appealed the ruling and the appeal will be heard next month.
Shell said it plans to “gradually” reduce sales of petroleum products such as gasoline, diesel and jet fuel but will continue to increase sales of liquefied natural gas, which it calls a “key fuel in the energy transition.”
Shell is already the largest gas supplier after state-owned Qatar Energy and has said it hopes to increase its sales by 20% to 30% by 2030.
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