The oil giant Shell has abandoned a key climate target for 2035.
In what it describes as part of an “energy transition strategy”, Shell has announced that it has “chosen to retire” its 2035 target of a 45% reduction in net carbon intensity due to what it calls uncertainty in the pace of change in the move away from fossil fuels.
“Net carbon intensity” refers to emissions per unit of energy. Measuring this rather than setting a target for a reduction in its entire Scope 3 emissions (the total generated by the use of fossil fuels and other energy products by consumers) allows the company to achieve its targets without cutting oil and gas production.
The target of a 45% reduction in net carbon intensity by 2035 was seen as an intermediate step on the way to company’s ultimate aim of net-zero emissions by 2050. However, the company made it clear that even the 2050 target is conditional. Shell says that if society as a whole is not net-zero by then, there is a “significant risk” that its target will not be met.
The company says continued investment in oil and gas is needed due to sustained demand for fossil fuels. This contrasts with analysis from the International Energy Agency (IEA), which says no new investment is needed.
Shell initially said the carbon intensity of the energy it sells would fall 20% by 2030, from a baseline of 2016, and then 45% by 2035. The 2030 target has been changed to a range of 15-20% and the 2035 target has been “retired”.
While saying that it envisioned a “balanced and orderly transition” away from fossil fuels, Shell announced a renewed focus on LNG, which it says will play a critical role in the energy transition.
Shell’s announcement comes just weeks after BP scaled back its target to increase renewable energy generation by 2030 in favour of a shift back towards fossil fuels.
Shell’s announcement reflects a general change in tone on the part of the major oil companies regarding climate commitments after a period in which they have made record profits due to rising fossil fuel prices. In February, Shell announced an annual profit for 2023 of more than £22bn ($28bn), making it one of its most profitable years on record.
