Shell softens its climate target, drawing criticism from environmentalists

British energy group Shell has decided to soften its climate target. Yesterday, it said on its website that it had lowered a key target for the carbon intensity of its products. It cited expectations of strong demand for gas and uncertainty surrounding the energy transition. However, it reaffirmed its plan to reduce emissions to net zero by 2050. Environmental organisations were quick to criticise the move.

Shell now plans to „reduce the net carbon intensity (the ratio of emissions to volume) of the energy products it sells by 15 to 20 percent by 2030 compared with 2016“. The company had previously planned a reduction of 20 percent.

Shell cites lower-than-expected growth in electricity sales as the reason for the change. The group says it now wants to focus on value rather than the volume of electricity generated.

The group is also scrapping its target of reducing the carbon intensity of the products it sells by 45 percent by 2035. On the other hand, Shell still wants to halve emissions from its own operations by 2030 compared with 2016.

„Shell is backtracking on its climate targets,“ said environmental shareholder group Follow This.

„Shell is weakening its emissions reduction targets for 2030, while CEO Wael Sawan is set to take home almost eight million pounds (CZK 236 million) in bonuses for 2023,“ environmental organisation Greenpeace said. Rival company BP announced a similar move last year.

Governments around the world are slowing the rollout of climate plans in response to rising energy costs and concerns about energy supplies. Major oil companies have also come under increased pressure from investors to focus on their most profitable activities, given that they have reported high profits in recent years while returns from renewable energy have fallen sharply, Reuters reported.