Quantcast
Climate
Electric vehicles are part of Shell's proposed green plan. Nick Birse / Wikimedia Commons

Shell’s Green Plan Underwhelms Critics

By Mitchell Beer

A leading producer of fossil fuels, which last month announced its intention to reduce its contribution to the global warming stoked by society's prodigal consumption of its products, may now be feeling more backlash than praise. Shell's green plan leaves some critics saying the group's figures don't add up very impressively.

Royal Dutch Shell pledged last month to cut its net greenhouse gas emissions 20 percent by 2035 and 50 percent by 2050, while investing $1-2 billion per year in renewables, and electric vehicles between 2018 and 2020.


The group said its announcement was a response to shareholder pressure and the targets in the Paris agreement on cutting emissions.

"Tackling climate change is a cross-generational, global and multi-faceted effort," said CEO Ben van Beurden. "This is a challenge for the whole planet, for all of society, for customers, for governments and indeed for businesses.

"It will mean meeting increasing energy demand with an ever-lower carbon footprint. And it is critical that our ambition covers the full energy life cycle, from production to consumption. We are committed to play our part.''

The announcement earned measured praise from environmental groups, and van Beurden said the commitment was just a first step. But the cash infusion to Shell's new energies division was still well below 10 percent of the company's total annual investment, and the phrasing of the GHG promise suggested an intensity-based target—which would mean the 20 and 50 percent reductions will be calculated on fossil production levels that Shell will expect to increase year after year.

"Shell will continue to target opportunities in new fuels and power, two businesses adjacent to its downstream and gas businesses that play to Shell's existing strengths in brand and value chain integration," industry publication JWN Energy noted.

"Integrated gas, conventional oil and gas, and oil products are currently cash engines; deep water and chemicals are growth priorities; shales and new energies are emerging opportunities.

"Illustrating the dynamic nature of the company's portfolio, the intention is for deep water to have become a cash engine by 2020, and shales to have become a growth priority by 2020."

What commitment?

This might explain van Beurden's carefully-worded commitment to "bring down the net footprint of our energy products (expressed in grams of CO2 equivalent per megajoule consumed) by around half by 2050," in a letter to Patricia Espinosa, executive secretary of the UN Climate Change Convention.

"As an interim goal, we aim to reduce it by around 20% by 2035—an ambition that we believe is compatible with a 2°C roadmap."

That language either implied something bad or something worse about the actual, tangible carbon reductions Shell is setting out to achieve. "CO2 equivalent per megajoule" means emissions still grow in step with the company's production volume, so that the percent commitment is applied to a higher initial output.

"This ambition includes emissions direct from Shell operations, emissions caused by third parties who supply energy for that production, and emissions caused by the use of our products by consumers, as well as activities that reduce or offset C02 emissions," van Beurden continued.

Product impact

But if "CO2 equivalent per megajoule consumed" means Shell's ambition is limited to its production emissions—the energy it consumes to produce fossil fuels—it means it's still ducking responsibility for the climate-busting impact of the product itself.

That would be like a tobacco company using only the best air filters to keep its workplace safe, the better to manufacture products that lead to a horrible, lingering death when used as directed.

While "it would be unwise to commit to an exact mix of measures to get to our ambition" at such an early stage in the transition, he said key elements of Shell's plan would include biofuels and hydrogen, growth in electric vehicle charging points, development of natural gas markets for power and transport, renewable power from solar and wind, and carbon capture and storage.

The target received a thumbs-up from Dutch activist shareholder group Follow This. "We applaud Shell's ambitious decision to take leadership in achieving the goals of the Paris Climate Agreement to limit global warming to well below 2.0°C," said founder Mark van Baal.

Dan Becker, director of the Washington-based Safe Climate Campaign, said the promise puts Shell "ahead of their competitors in recognizing that the days of oil dependence are numbered," although "we'll have to make progress a lot more quickly than they are projecting in order to protect the climate."

Timing riddle

Earlier this year, Shell earned headlines with a proposal to tie 10 percent of executive bonuses to greenhouse gas reductions. "This is a good move by the company but we would like to see more," Bruce Duguid, stewardship director at Hermes Investment Management, said at the time.

Some critics also pointed to a strange coincidence of timing that had Shell releasing its new carbon targets on the day that Amnesty International called for a criminal investigation of the company's alleged complicity in human rights abuses by the Nigerian military in the 1990s.

Amnesty's review of "thousands of internal company documents and witness statements … pointed to the Anglo-Dutch organisation's alleged involvement in the brutal campaign to silence protesters in the oil-producing Ogoniland region," the Guardian reported.

"Amnesty is urging the UK, Nigeria, and the Netherlands to consider a criminal case against Shell in light of evidence it claims amounts to 'complicity in murder, rape, and torture'—allegations Shell strongly denies."

Mitchell Beer is a climate and energy communicator and curator of The Energy Mix, a Canadian e-newsletter on climate, energy, and the shift to a post-carbon future.

Republished by permission from The Energy Mix.

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Popular
The Stikine River runs through Wrangell, Alaska. Mining operations nearby threaten to poison fish in the Stikine watershed and destroy the traditions and livelihoods of Southeast Alaskan Tribes. Alaska Department of Fish and Game

Canada as Ugly Neighbor: Mines in BC Would Devastate Alaskan Tribes

By Ramin Pejan

Mining operations in Canada are threatening to destroy the way of life of Southeast Alaskan Tribes who were never consulted about the mines by the governments of Canada or British Columbia.

Keep reading... Show less
Business
Deforestation on peatland for palm oil plantation in Borneo, Indonesia. glennhurowitz / Flickr / CC BY-ND 2.0

World's Largest Palm Oil Trader Ramps Up Zero-Deforestation Efforts

The world's largest palm oil trader released plans on Monday to increase its efforts to eliminate deforestation from its supply chain.

Wilmar International, which supplies 40 percent of the world's palm oil, has teamed up with the sustainability consultancy Aidenvironment Asia to develop a comprehensive mapping database to better monitor the company's palm oil supplier group.

Keep reading... Show less
Popular
The Elkhorn Slough Reserve is one of California's few remaining coastal wetlands. Edmund Lowe Photography / Moment / Getty Images

New EPA Rule Would Sabotage Clean Water Act

By Jake Johnson

In a move environmentalists are warning will seriously endanger drinking water and wildlife nationwide, President Donald Trump's U.S. Environmental Protection Agency (EPA) is reportedly gearing up to hand yet another gift to big polluters by drastically curtailing the number of waterways and wetlands protected under the Clean Water Act.

Keep reading... Show less
Popular
James Braund / Getty Images

40 Acres of Farm Land in America Is Lost to Development Every Hour

By Brian Barth

Picture bulldozers plowing up pastures and cornfields to put in subdivisions and strip malls. Add to this picture the fact that the average age of the American farmer is nearly 60—it's often retiring farmers that sell to real estate developers. They can afford to pay much more for property than aspiring young farmers.

Keep reading... Show less
Sponsored
Energy

60,000 Liters of Oil Spills From Pipeline Into Brazilian Bay

About 60,000 liters (15,850 gallons) of oil spilled from a pipeline into the Estrela River and spread to Rio de Janeiro's famed Guanabara Bay over the weekend, according to Reuters and local reports.

The pipeline is owned by Transpetro, the largest oil and gas transportation company in Brazil, and a subsidiary of Petroleo Brasileiro (commonly known as Petrobras). Transpetro claims the leak resulted from an attempted robbery.

Keep reading... Show less
Popular
alvarez / E+ / Getty Images

Holiday Shoppers, the Planet Needs You to Take It Easy With Next-Day Shipping

By Jeff Turrentine

Back in 1966, the editors of Time indulged in a long-honored magazine tradition and published an essay in which experts made predictions about the future—in this case, the year 2000. By then, these experts prognosticated, a typical shopper "should be able to switch on to the local supermarket on the video phone, examine grapefruit and price them, all without stirring from her living room." But even so, they predicted, "remote shopping, while entirely feasible, will flop." Why? Because shoppers "like to get out of the house, like to handle the merchandise, like to be able to change their minds."

Keep reading... Show less
Sponsored
Climate
The Russia pavilion at the COP24 conference in Katowice, Poland. Beata Zawrzel / NurPhoto via Getty Images

COP24: U.S. Joins Saudi Arabia, Russia and Kuwait in Blocking Crucial Climate Report

The U.S. has thrown its hat in the ring with three other fossil-fuel friendly nations to block the COP24 talks from "welcoming" the landmark Intergovernmental Panel on Climate Change (IPCC) report that warned that we must reduce greenhouse gas emissions to 45 percent of 2010 levels by 2030 in order to limit warming to 1.5 degrees Celsius above pre-industrial levels, BBC News reported.

Keep reading... Show less
Politics
Amazon rainforest cleared for cattle raising; green groups are concerned Brazil's new environment minister will prioritize agriculture over conservation. Luiz Claudio Marigo / Nature Picture Library / Getty Images

Brazil’s New Environment Minister Is Bad News for the Amazon and the Climate

When right-wing Congressman Jair Bolsonaro was elected president of Brazil in October, environmental groups raised concerns about what his presidency could mean for the future of the Amazon rainforest and the global fight against climate change.

Now, Bolsonaro's choice for environment minister appears to justify those concerns. In a tweet Sunday, Bolsonaro announced he would appoint pro-business lawyer Ricardo de Aquino Salles to the role, Reuters reported.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!