Shell to invest $10B-$15B in low-carbon energy solutions in energy transition

Shell has published its first energy transition update since the launch of its Powering Progress strategy in 2021. In this energy transition update, Shell is focusing on how the same strategy delivers “less emissions”. The company’s target is to achieve net-zero emissions by 2050 across all operations and energy products. The company believes this target supports the more ambitious goal of the Paris Agreement to limit global warming to 1.5 degrees C above pre-industrial levels. To help drive the decarbonization of the transport sector, Shell has set a new ambition to reduce customer emissions from the use of oil products by 15%-20% by 2030 compared with 2021. The company plans to build its power business, including renewable power, in places including Australia, Europe, India and the USA, and have withdrawn from the supply of energy directly to homes in Europe. In line with this shift to prioritizing value over volume in power, Shell will focus on select markets and segments. This includes selling more power to commercial customers, and less to retail customers. Given this focus on value, Shell expects lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target. Shell is now targeting a 15%-20% reduction by 2030 in the net carbon intensity of the energy products the company sells, compared with 2016, against its previous target of 20%. Shell is investing $10B-$15B between 2023 and the end of 2025 in low-carbon energy solutions, making the company a significant investor in the energy transition. And in 2023, the company invested $5.6B on low-carbon solutions, more than 23% of our total capital spending. These investments include electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage. Our investments in new technologies are helping to reduce emissions for Shell and our customers. Shell aims to help scale new technologies to make them an affordable choice for customers and are focusing its advocacy on key areas which Shell believes are critical to the energy transition.