At-a-Glance

Shell announced a net-zero emissions target for 2050, becoming the second major European oil company after BP to set its sights on a clean-energy goal. To make this transition, Shell will shift to selling less oil and more power and natural gas while taking steps to reduce its own emissions. To learn more, read GreenTech Media’s “Shell Sets Net-Zero Target for 2050, Emphasizing Power and Renewables.”

Key Takeaways:

• Shell committed to aligning its efforts with the Paris Agreement’s goal of limiting warming to 1.5 degrees Celsius.
• Shell will also target Scope 3 emissions, which encompass the end use of its products and account for 85 percent of the organization’s total carbon footprint.
• To reduce its own emissions, Shell will expand its renewables business, improve the energy efficiency of its operations, and rely on carbon offsets like planting trees.
• Shell CEO Ben van Beurden said the COVID-19 pandemic and subsequent economic fallout has not weakened the company’s stance on its energy transition.
• Some environmental groups have pushed back against Shell’s plan, highlighting that the company should stop drilling for new oil and gas.

Path to 100% Perspective:

Shell is not the first European oil company to make this commitment, but it is helping pave the way for future energy organizations to follow its example. While the transformation of Shell’s business operations to meet this new net-zero target will be a major challenge, this move is a step in the right direction, toward the Intergovernmental Panel on Climate Change’s (IPCC) recommendation to limit warming to 1.5 degrees Celsius.