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LATEST ARTICLE Trading carbon, trading up: the public companies transforming sustainability Read Article

Retiring carbon: Shell's enhanced focus on offsets for emission goals

Shell has recently reported a significant shift in its approach to managing carbon emissions, revealing a substantial increase in the use of carbon credits as a key strategy. This development emerges in the context of the company revising its carbon intensity reduction targets for 2030, signalling a heightened focus on profitability through oil and gas ventures.

Shells enhanced focus on offsets for emission goals_A car driving on a forestry road towards the sun_visual 1A car driving on a road with forests towards the sun. AI generated picture.

The energy giant's sustainability efforts have seen a notable pivot, with its latest annual sustainability report indicating a reliance on carbon credits (carbon units) to achieve its emissions reduction figures. In 2023, Shell retired 20 million tonnes of carbon offsets, a stark increase from the 4.1 million tonnes reported in 2022. This strategic shift has contributed to a reduction in net carbon intensity, largely attributed to decreased power sale intensity and the strategic use of carbon credits.

Read more: UK's $31 million lifeline to nature: restoring habitats from grasslands to wetlands

Moreover, Shell has expanded its carbon credit usage to encompass non-energy products and business travel, totalling 21.8 million credits retired. The company disclosed an $86 million investment in carbon credits in 2023 amidst a volatile carbon market, focusing on both nature-based and technological projects.

Despite these efforts, Shell has faced criticism for weakening its 2030 carbon reduction target, moving from an ambitious 45% reduction to a more modest 15%20% compared to 2016 levels. This adjustment has sparked debate over the company's commitment to comprehensive emission reductions versus financial returns. 

Read more: Shell: achieving net zero through nature-based solutions

As Shell continues to navigate the complexities of reducing emissions while pursuing economic gains, the role of carbon credits in its sustainability strategy remains a focal point of discussion.

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At DGB Group, we are committed to developing nature-based solutions that not only help companies compensate for their emissions but also benefit the environment. Carbon compensation solutions based on nature is the ideal solution for companies that have hard-to-abate emissions and wish to compensate for their environmental impact while helping to restore nature. Our holistic approach to sustainability, coupled with our premium carbon units (carbon credits), ensures that the benefits of our endeavours extend to all stakeholders, including local communities. This sets the foundation for a brighter, sustainable future for everyone.

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