Shell loosens 2030 carbon emissions target

By Thomson Reuters Mar 14, 2024 | 2:48 AM

By Ron Bousso

LONDON (Reuters) – Shell has lowered its target for reducing the intensity of its overall carbon emissions by 2030, it said on Thursday, citing expectations for lower power sales.

In an annual update on its energy transition strategy, the British energy giant reaffirmed its ambition to become a net-zero emitter by 2050.

Shell said it will target a 15-20% reduction in net carbon intensity of its energy products by 2030 compared with 2016 intensity levels. It had previously aimed for a 20% cut.

Measuring emissions by intensity means a company can technically increase its fossil fuel output and overall emissions while using offsets or adding renewable energy or biofuels to its product mix.

Chief Executive Wael Sawan took the helm in January 2023 with a vow to revamp Shell’s strategy to focus on higher-margin projects, steady oil output and growth in production of natural gas.

“In line with this shift to prioritising value over volume in power, we will focus on select markets and segments. This includes selling more power to commercial customers and less to retail customers,” Shell said.

“Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target.”

Shell also announced a new “ambition” to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021.

(Reporting by Ron Bousso; Editing by David Goodman)