In focus Carbon credits, including nature-based solutions (NBS)
Carbon credits may be used by Shell and our customers to compensate emissions in line with the mitigation hierarchy of avoid, reduce and compensate. We are clear that carbon credits need to have a robust carbon benefit but also deliver a positive impact on ecosystems and communities. We work closely with local partners to ensure that the carbon credits projects we invest in are of a high quality.
In 2022, we invested $69 million in nature-based projects and $23 million in technology-based projects, such as fuel-efficient cookstoves. The nature-based projects include reforestation and the prevention of landscape degradation and destruction. The spend on nature-based projects includes a $40 million investment in Brazilian carbon credit developer Carbonext. This company’s portfolio protects more than 2 million hectares of the Amazon rainforest.
We offer carbon credits to drivers and business customers who wish to compensate for the life-cycle CO2-equivalent emissions of the Shell product they buy. In 2022, this offer was extended to motorists at more than 4,000 service stations in Austria, Canada, Denmark, Germany, Hungary, the Netherlands, Switzerland and the UK.
We delivered 11 carbon-compensated liquefied natural gas (LNG) cargoes to our customers across the globe, and for the first time, a GHG-neutral LNG cargo in line with the GIIGNL Framework [A]. We also launched our Avgas carbon-compensated offer for aviation customers in selected markets in Europe and in Singapore, through our airport network.
In 2022, we retired 5.8 million carbon credits, including 4.1 million credits included in our net carbon intensity, and 1.7 million carbon credits associated mainly with the sale of non-energy products and with Shell’s business travel. One carbon credit represents the avoidance or removal of 1 tonne of CO2. We carefully source and screen the credits we purchase and retire from the market, and work with multiple certification standards and ratings agencies to check that our requirements are met.
Carbon credits, including nature-based solutions, are part of our Renewables and Energy Solutions business segment.
Read more about how we ensure high-quality carbon credits on our website: www.shell.com/energy-and-innovation/new-energies/nature-based-solutions
[A] This framework, published by the International Group of Liquefied Natural Gas Importers, provides a common source of best practice principles in the monitoring, reporting, reduction, offsetting and verification, of GHG emissions associated with a delivered cargo of LNG.