Shell PLC has published its Energy Transition Strategy 2024, outlining its commitment to halve emissions from its operations by 2030 and reduce customer emissions from the use of its oil products by 15-20% by 2030. The company has achieved more than 60% of its emissions reduction target and reduced the net carbon intensity of the energy products it sells by 6.3% compared with 2016. Shell plans to invest $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions, positioning itself as a significant investor in the energy transition.
The company's Chief Executive Officer, Wael Sawan, emphasized the importance of balancing energy demand with the urgent challenge of climate change. Shell's strategy supports a balanced and orderly transition away from fossil fuels to low-carbon energy solutions to maintain secure and affordable energy supplies. Sawan highlighted the company's role in providing the energy the world needs today and in helping to build the low-carbon energy system of the future.
Shell's energy transition plans cover all its businesses, including a focus on liquefied natural gas (LNG) as a critical fuel in the energy transition. The company is also making strides in reducing methane emissions and has set a target to achieve near-zero methane emissions by 2030. Additionally, Shell aims to take the lead in the energy transition where it has competitive strengths, strong customer demand, and clear regulatory support from governments.
In line with its strategic shift, Shell plans to build its power business, including renewable power, in select markets and segments, while withdrawing from the supply of energy directly to homes in Europe. The company will focus on selling more power to commercial customers and less to retail customers, with an updated target of a 15-20% reduction in the net carbon intensity of the energy products it sells by 2030.
Shell's commitment to transparent reporting includes annual updates on its progress against its targets and ambitions. With investments in low-carbon energy solutions, the company is driving towards a net-zero emissions future, aiming to play a significant role in the energy transition.