Oil giant, Shell, intends to become a net zero-carbon company by 2050 or sooner by selling more green energy to help reduce the carbon intensity of its business.
The oil and gas company’s target relies on shifting its business towards selling clean energy products such as renewable energy and biofuels. It also plans on working alongside its ‘net-zero’ customers to help offset carbon impact.
Shell also plans to work with its larger customers, such as major airlines, to share the burden of offsetting the carbon from fossil fuel products which may still be in use by 2050, such as jet fuels.
Shell is confident it will adopt the new measures despite huge financial pressures from the coronavirus pandemic and oil price collapse.
The company outlined a specific scenario looking at what Europe might need to do, to decarbonize energy in the next 30 years.
The scenario has nine areas for action, such as ensuring that renewables like wind and solar produce around three-quarters of that power and the EU improving its energy efficiency by 45% compared to today.
Ben van Beurden, Shell’s chief executive, said the company must focus on the long-term “even at this time of immediate challenge” caused by the COVID-19 pandemic.
“Society’s expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions, which is why we aim to be a net-zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less,” he said.