Shell Ponders Slowing Carbon-Cut Targets Amid Energy Strategy Revamp: Report

Shell PLC SHEL has been reportedly contemplating slowing the pace of its carbon-emission reductions as it revises its energy-transition strategy.

Alterations to the company’s climate objectives might be disclosed as soon as Thursday, coinciding with the release of its updated long-term energy plan and greenhouse gas emissions targets, reported Bloomberg.

CEO Wael Sawan’s strategy to allocate more investments into oil and gas aims to enhance shareholder returns, the report noted.

Initiated in 2020 under former CEO Ben van Beurden, Shell’s net-zero ambition targets a 20% reduction in net carbon intensity by 2030 compared to the 2016 baseline, aiming for net zero by 2050.

The report further noted that the process to revamp this strategy, internally known as Project Vega, involves studying various emissions-reduction options, as detailed in a forthcoming Energy Transition Strategy report scheduled for March 14.

A potential shift in Shell’s climate goals follows BP P.L.C.‘s BP similar move last year. The report noted Shell’s 2050 net-zero target remains aspirational, influenced by a 10-year planning horizon.

CEO Sawan’s emphasis on shareholder value has prompted increased dividends and fossil fuel investments, drawing mixed reactions from stakeholders.

Read Next: Shell May Need To Clean Up Old Infrastructure Before Leaving Nigeria: Report

Price Action: SHEL shares are trading higher by 0.33% at $64.50 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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