Shell warns it may slow emissions reduction during crucial climate decade

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The energy company Shell has watered down one of its climate ambitions as it prepares to keep its oil production stable while growing its liquified natural gas business. The company used its latest energy transition strategy to warn that it may slow the pace of its emissions reductions this decade, saying that it now wants to reduce the carbon emissions intensity of the energy it sells by 15-20% by 2030, compared with its previous target of 20%. The target is measured against 2016. The updated target will enable Shell to slow the pace of its emissions reductions in a decade that climate scientists have warned is crucial in averting a climate catastrophe. The oil company has also promised to cut emissions from producing oil and gas – but it will continue to keep its oil production stable while growing its liquified natural gas business, meaning overall emissions on an absolute basis could continue to rise. Wael Sawan, Shell’s chief executive, said: “A balanced energy transition, which Shell supports, is one that maintains secure and affordable energy supplies, while the world builds the clean energy system of the future.” “Billions of people depend on energy and hundreds of millions still hope to have access to it. Energy is vital for lives everywhere,” Sawan said. Last month, Shell revealed an annual profit of more than $28bn (£22bn) for 2023, one of its most profitable years on record, as green activists staged a protest outside the company’s London headquarters. Sawan, who became chief executive early last year, received a pay package of £7.9m in 2023, the company’s annual report revealed. He replaced Ben van Beurden, who was paid £9.7m in 2022. Jonathan Noronha-Gant, a senior fossil fuels campaigner at Global Witness, said: “Shell’s CEO pay packet is a bitter pill to swallow for the millions of workers living with the high costs of energy. Our reliance on Shell’s dirty oil and gas make them rich whilst the rest of us get poorer.” Sawan angered green groups within months of taking up the top job by suggesting that the company would reverse a plan to reduce Shell’s oil and gas production by 1-2% a year, in pursuit of higher profits. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Sawan said the company added 200,000 barrels of oil equivalent a day to its production last year and by 2025 would start enough new fossil fuel projects to add half a million barrels a day. The decision to continue investing in fossil fuels goes against advice from climate experts who have said there can be no new fossil fuel development if the world hopes to avoid a climate crisis. The new oil and gas projects would enable Shell to “continue providing the energy security that the world needs, while delivering cashflow longevity into the future”, according to Sawan.