Shell weakens targets for carbon-emission cuts in next decade

Shell’s spending on low-carbon energy may also slow in the coming years. It plans to invest $10bn (€9.1bn) to $15bn (€13.75bn) between 2023 and 2025, $5.6bn of which was already spent in 2023. 

Shell weakened its targets for carbon-emissions cuts in the coming decade, while maintaining the ambition of becoming a net zero company by 2050.

The change is the latest sign of a broader adjustment in plans for the energy transition among the UK-based oil majors, which have been under pressure from activist investors to focus on their core petroleum businesses. BP last year said it would pump more oil and gas and have higher emissions this decade than previously planned.

Shell now aims to reduce its net carbon intensity by 15% to 20% by 2030, compared with a previous target of 20%, according to its latest energy transition strategy update. 

The company also dropped its goal of a 45% reduction by 2035 citing “uncertainty in the pace of change in the energy transition.” Those targets are measured against a baseline of emissions in 2016. 

The change reflects Shell’s move away from supplying renewable power to homes, following the sale of its UK and German retail business last year. Underscoring this shift back to its core fuel business, the company introduced a new target to reduce customer emissions from the use of its oil products by 15% to 20% by 2030, compared with 2021 levels.

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“Our focus on value has led to a strategic shift in our power business towards select markets and segments,” chief executive Wael Sawan said. “We expect lower growth in sales of power overall. We have updated our net carbon intensity target to reflect that change.” 

Shell’s spending on low-carbon energy may also slow in the coming years. It plans to invest $10bn (€9.1bn) to $15bn (€13.75bn) between 2023 and 2025, $5.6bn of which was already spent in 2023. 

Bloomberg