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Shel (NYSE:SHEL) confirmed Thursday that it will moderate its near-term carbon emission reduction targets, while maintaining its pledge to become a net-zero company by 2050.
In its updated Energy Transition Strategy, Shell (SHEL) said it now aims to reduce its net carbon intensity by 15%-20% by 2030, down from a previous target of 20%, while also dropping its goal of a 45% reduction by 2035, compared with a 2016 baseline, citing “uncertainty in the pace of change in the energy transition.”
Shell (SHEL) introduced a new ambition to cut the absolute emissions from the oil products it sells by 15%-20% by 2030 from 2021 levels, but it excluded gas.
The company also confirmed it plans to spend $10B-$15B during 2023-25 in low-carbon energy solutions.
The changes reflect CEO Wael Sawan’s plans to keep oil production flat and increase sales of liquefied natural gas while being more selective about the types of low-carbon energy products it sells.
“This is not about trying to change a trajectory, we are committed to that trajectory,” Sawan told the Financial Times, adding that over the past three years, Shell (SHEL) has learned that “the shape of the energy transition and the pace of the evolution in different countries is just uncertain.”
Shell’s (SHEL) 2021 commitment to reduce absolute emissions from its operations by 50% by 2030 had not unchanged, the CEO said, adding that those operational emissions already had fallen by 31%.
Shell’s (SHEL) decision to scrap the 2035 interim target brings the company in line with most of its rivals, but varying methodologies and starting points make it difficult to compare across companies.
Shareholders will vote on the updated emissions strategy in May.