Ipieca member Shell sets out its strategy to accelerate its transformation into a provider of net-zero emissions energy products and services by 2050.
Ipieca member Shell has launched its Powering Progress strategy to accelerate its transformation into a provider of net-zero emissions energy products and services. Powered by growth in its customer-facing businesses, the strategy supports the goal of the Paris Agreement to limit the global temperature rise to 1.5° Celsius. Shell also confirmed its expectation that total carbon emissions for the company peaked in 2018 at 1.7 gigatons for the year.
Shell's strategy sets out how it will achieve its target to be a net-zero emissions energy business by 2050. The target covers the emissions from its operations and the emissions from the use of all the energy products it sells. It also includes emissions from the oil and gas that others produce and Shell then sells as products to customers.
Its net-zero strategy includes:
- A new set of targets to reduce net-carbon intensity: 6-8% by 2023, 20% by 2030, 45% by 2035 and 100% by 2050, using a baseline of 2016;
- An additional 25 million tonnes per year of carbon, capture and storage (CCS) capacity by 2035. Shell is currently involved in three key CCS projects: Quest in Canada (in operation), Northern Lights in Norway (sanctioned) and Porthos in the Netherlands (planned), with a total of ~4.5 million tonnes of capacity.
- The use nature-based solutions, in line with the philosophy of avoid, reduce and only then mitigate, to offset emissions of around 120 million tonnes a year by 2030.
- Working with the Science Based Targets Initiative, Transition Pathway Initiative and others to develop standards for the industry.
- Submit an Energy Transition Plan for an advisory vote to shareholders, the first in the sector to do so. The plan will be updated every three years and an advisory vote on the progress made each year.