Oil giant Shell waters down its near-term emission cuts in strategy update

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British oil giant Shell on Thursday announced plans to moderate its near-term carbon emissions cuts, while maintaining its pledge to become a net-zero company by the middle of the century. In its latest energy transition strategy update, the oil and gas major said it is now aiming to reduce its net carbon intensity on the third-party use of products it sells by 15% to 20% by 2030, compared with a previous target of 20%. Shell said it had also dropped its goal of a 45% reduction by 2035, citing "uncertainty in the pace of change in the energy transition." The net carbon intensity targets are measured against a baseline of emissions in 2016. "Our focus on value has led to a strategic shift in our power business towards select markets and segments," Shell CEO Wael Sawan said in a statement. "As a result, we expect lower growth in sales of power overall. We have updated our net carbon intensity target to reflect that change." Shell's update comes as European energy majors continue to tweak their plans in the transition to clean-energy technologies. Last year, British rival BP said it was targeting a 20% to 30% emissions cut by the end of the decade, compared to a previous commitment to a 35% to 40% trim. BP, which is also planning to become a net-zero company by 2050, said at the time that it needed to keep investing in oil and gas to meet global demand.