Shell Announces Plan to Become Net Zero by 2050

Royal Dutch Shell will begin selling more green energy to offset the carbon produced by the rest of its business in a bid to become a net-zero company by 2050.

The company’s chief executive, Ben van Beurden, said that Shell must look primarily to the future ‘even at this time of immediate challenge’ caused by the global coronavirus pandemic.

“Society’s expectations have shifted quickly in the debate around climate change,” said van Beurden. “Shell now needs to go further with our own ambitions, which is why we aim to be a net-zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less.”

Van Beurden announced to investors last week that Shell would increase its current target to decrease the carbon intensity of its operations by 65% within the next three decades - up from the previous target of 50%.

Shell’s plans also include an intermediary target to cut ‘scope 3 emissions’ by over a third by the year 2030.

The company’s targets rely on refocusing its business on the selling of cleaner energy products and working closely with ‘net-zero’ clients to help mitigate the carbon impact of their operations.

Shell said that it intends to collaborate with customers, such as airlines, to share the responsibility of offsetting the carbon impact of fossil fuels, such as jet fuels, still being used in 2050.

Many have applauded Shell’s plan, including pension funds within the Climate Change 100+, as well as major investors.

Chairwoman of the ABP pension fund, Corien Wortmann-Kool, said: “We appreciate the fact that Shell regularly evaluates and now raises its ambitions. After the earlier announcements in 2017 and 2018, Shell’s example has been followed by other oil and gas companies. We hope that this announcement will again have a domino effect”.

A director on the Church of England Pensions Board, Adam Matthews, welcomed Shell’s announcement that it would develop ‘net-zero pathways’ for carbon-heavy sectors:

“Ultimately, it will be by developing and supporting net-zero pathways in these sectors that we will achieve the goals of the Paris agreement”.

Some environmental campaigners are sceptical, however. The head of Greenpeace UK’s climate campaign, Richard George, said: “A credible net-zero plan from Shell would start with a commitment to stop drilling for new oil and gas.

“Instead, investors are being fobbed off with vague aspirations that don’t tackle Shell’s monstrous carbon footprint and pass the buck to Shell’s customers to offset their emissions”.