Net-zero policy frameworks

We support the more ambitious 1.5°C goal of the Paris Agreement. We are committed to lobbying for policy positions that we believe are in line with the goals of the Paris Agreement and the world achieving net-zero emissions by 2050.

We believe that net-zero emissions targets should be translated into comprehensive policy frameworks to achieve national net-zero emissions goals.

We think these frameworks should include setting strengthened Nationally Determined Contributions (NDCs) and developing strategies and roadmaps that achieve NDCs and net zero-aligned pathways in key sectors. We also believe they should create  investment certainty for the private sector through predictable and coherent policymaking, and ensuring a fair distribution of the economic and social costs and benefits of the world’s transition to net zero.

We advocate directly to governments and international organisations and through industry associations and coalitions.

Examples of our advocacy:

• We attended COP28 and signed up to the Oil and Gas Decarbonization Charter (December 2023).
• We attended and published a dedicated COP29 section on our website setting out our approach on a number of COP29 themes such as carbon markets and decarbonising transport and industry.
• We participated in the Energy, Climate Change & Resource Efficiency Task Force of the 2023 B20 under the India G20 Presidency, which called on G20 governments to enhance global cooperation in accelerating the net-zero transition. See the B20 Energy, Sustainability and Climate Task Force policy paper (August 2023).
• We also participated in the Energy Transition and Climate Task Force of the 2024 B20 under the Brazilian G20 Presidency which called for global collaboration to have the most efficient and cost-effective pathways to achieve net-zero emissions. See the B20 Energy Transition and Climate Task Force policy paper (2024).
• We use our Energy Security Scenarios in our engagements with a range of stakeholders, including governments.
• We continue to work with the Mission Possible Partnership (MPP), which aims to drive industrial decarbonisation across the world’s highest-emitting heavy industry and transport sectors. We have been involved in several sector-based initiatives, including the Getting to Zero Coalition for shipping, Clean Skies for Tomorrow Coalition for aviation and the Road Freight Zero coalition for heavy-duty road transport. We have also participated in initiatives such as the Net-Zero Steel Initiative for the steel sector, Concrete Action for Climate for the concrete and cement sectors, Aluminium for Climate for the aluminium sector and the Transatlantic Clean Hydrogen Trade Coalition (HT2C).
  We have endorsed the CALSTART Drive to Zero initiative that aims to accelerate adoption of zero-emission medium- and heavy-duty vehicles.
• Our Chief Economist, Mallika Ishwaran, is a Commissioner on the Energy Transitions Commission (ETC). The ETC has published a range of reports relating to net zero.

International carbon markets policy framework, including Article 6 of the Paris Agreement

The Article 6 rulebook was progressed at COP26 in 2021 and completed at COP29 in 2024.

We support putting a direct price on carbon emissions as part of a broader policy framework to achieve net-zero emissions.

We support the integration of carbon credits, including those from nature-based solutions, into carbon markets in a manner that supports a robust price on greenhouse gas (GHG) emissions.

We support international carbon market cooperation under Article 6 of the Paris Agreement, including ensuring that international carbon credit transactions have environmental integrity by avoiding double counting across national inventories.

We advocate directly to governments and international organisations. We also advocate through industry associations and coalitions, including the International Emissions Trading Association (IETA), the International Chamber of Commerce (ICC) and the World Bank’s Carbon Pricing Leadership Coalition (CPLC).

Examples of our advocacy:

• We co-chaired the IETA International Working Group and contributed to the IETA policy brief Finalising the Article 6 Rulebook at COP29 (September 2024), the IETA Article 6 Discussion Paper: How governments can implement NDCs cooperatively and encourage private sector investment (second edition) (November 2023) and the IETA paper Unlocking scale and ambition in Article 6 ahead of a positive outcome at COP29 (May 2024).
• We co-chaired the ICC working group that produced Proposals for effective carbon pricing: Leakage and linkage considerations (December 2023) and contributed to Global Principles for Effective Border Adjustments (October 2024).
• We participated in the T20 Task Force on Sustainable Climate Action and Inclusive Just Energy Transitions, under Brazil’s G20 Presidency. The T20 brings together think tanks and research centres from G20 members and guest countries and organisations. In partnership with CCS Brasil, we developed a T20 policy brief The Strategic Role of Carbon Markets: Incentivizing Carbon Dioxide Removals in support of a low-carbon economy (November 2024).

Role of gas and LNG in the energy transition

Policies to reduce emissions from oil and gas

Regulations relating to decommissioning of oil and gas facilities

We believe that policies should recognise the role of gas in the energy transition and in securing stable energy supplies, in line with the individual decarbonisation pathways of countries. 

We advocate the benefits of natural gas and LNG in delivering a flexible and reliable supply of energy, which can help reduce the dependence on more carbon-intensive fuel sources.

We believe that governments should set regulatory frameworks to cover the full oil or gas project lifecycle, from licensing and exploration to decommissioning. We believe such frameworks should drive low-emissions production, be aligned with net-zero pathways and provide long-term fiscal and regulatory predictability.

We advocate responsible decommissioning practices when oil and gas operations reach the end of their productive lives. This includes working with governments and regulators to ensure that industry has the financial and technical capabilities to plan, fund and execute decommissioning projects.

See separate row for methane.

We have advocated to governments directly, and worked with international organisations and associations including Oil and Gas Decarbonisation Charter, African Development Bank, OECD, International Association of Oil & Gas Producers (IOGP), the International Energy Agency (IEA) and New Producers for Sustainable Energy.

Examples of our advocacy:

• Shell’s annual Shell LNG Outlook (February 2024) explores LNG supply and demand, and emerging future trends. We have used the LNG Outlook in engagements with policymakers in various regions.   
• We worked with the New Producers for Sustainable Energy, an association of 22 member countries and a network that brings together government officials, national oil company executives, subject matter experts and civil society representatives. We developed a programme for regulatory capacity building in countries aiming to develop domestic resources. We also shared our perspectives on successful examples of policy to support emissions reductions and sustainable operations. These include reductions in greenhouse gas emissions, development of local skills as part of a just transition, energy efficiency, CCS, and repurposing of infrastructure.
• We worked with IOGP on approaches and technical considerations for various decommissioning solutions, such as retention of habitats, and the dismantling of floating production storage and offloading units. We also worked with IOGP on global principles for decommissioning financial assurance, to help ensure that industry successfully delivers on its obligations to decommission oil and gas infrastructure at the end of production operations.

International Sustainability Standards Board’s (ISSB) sustainability-related disclosure standards

The final ISSB standards, IFRS S1 and S2, were published in June 2023.

Some countries have been adopting and implementing ISSB standards (see Australia and UK rows).

We support the development of common standards and benchmarks to allow comparison of environmental, social and governance (ESG) reporting and to improve transparency.

We welcome the creation of the ISSB and support the development of a single framework of globally accepted standards for sustainability reporting, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

While we support the ISSB in their efforts to establish global sustainability disclosure standards in principle, there are a number of exceptions that we set out in our responses to the 2022 ISSB consultation and various responses to national efforts to adopt these standards.

We have engaged ISSB directly. We have also engaged with various organisations, including the World Economic Forum (WEF), Ipieca, the World Business Council for Sustainable Development (WBCSD) and the European Round Table for Industry (ERT). We have engaged some national regulators on their plans to adopt/implement ISSB standards.

Examples of our advocacy:

• We supported, via WBCSD, a joint statement calling for the global adoption of ISSB standards (May 2024). The joint statement was supported by more than 120 investors, companies, industry associations and stock exchanges.
• We are engaging directly and through industry stakeholder groups with ISSB in their efforts to update industry-specific Sustainability Accounting Standards Board (SASB) standards. These standards are expected to be used as guidelines for consideration for companies reporting against the ISSB standards. We are a member of the Sustainability Reference Group of the International Financial Reporting Standards Foundation (IFRS). Through this role we are involved in the development of new ISSB standards and guidelines, including the updates to SASB standards.

Initiatives to reduce methane emissions and end routine flaring

We are calling on governments and policymakers to aim for near-zero methane emissions (on an intensity basis) by 2030 throughout the gas value chain through direct regulations such as performance standards, based on robust monitoring, reporting and verification frameworks. We are also calling for the end of routine flaring as soon as possible and no later than 2030 to help achieve such standards.

We encourage voluntary action including in support of international policy initiatives such as the Global Methane Pledge.

We have engaged with governments and various civil society stakeholders on this topic directly and through our coalitions and industry associations. 

We work with others on reducing methane emissions through our external methane coalitions and partnerships. These include the Methane Guiding Principles (MGP, which we initiated and are a signatory to), the World Bank’s Global Flaring and Methane Reduction Partnership (GFMR, of which Shell became the first official partner in 2024), the Oil and Gas Methane Partnership 2.0 (OGMP2.0, of which Shell is a founding signatory) and the Oil and Gas Climate Initiative (OGCI).

Examples of our advocacy:

• We are part of the MGP’s Advancing Global Methane Reduction (AMGR) initiative that aims to drive methane emissions reduction in more than 20 countries, working with governments and industry to inform methane policies and regulations and disseminate best practice.
• We participated in the first Oil and Gas Methane Partnership (OGMP) 2.0 CEO Forum. We shared insights into our methane emissions reduction journey and encouraged wider adoption of the measurement-based OGMP2.0 reporting framework to support higher accuracy of reported methane emissions from the oil and gas sector (November 2024).
• We are a GFMR partner, contributing to the GFMR fund launched at COP28.
• We are a signatory of the Oil and Gas Decarbonization Charter (OGDC) announced at COP28 which includes methane and flaring commitments (near-zero upstream methane emissions by 2030 and zero routine flaring by 2030).
• We are participating in the Measurement, Monitoring, Reporting and Verification (MMRV) Stakeholder Group. This supports an international MMRV working group aimed at establishing a Greenhouse Gas Supply Chain Emissions MMRV Framework for providing comparable and reliable information to participants in the natural gas market.

We are co-funding the OGCI Satellite Monitoring Campaign. This campaign has helped local operators, including national oil companies and partners, to identify and mitigate methane emissions from their oil and gas operations.

Hydrogen policy initiatives

We believe that national and international hydrogen strategies and ambitions should be translated into clear, coherent, and timely policies and regulations, to give long-term certainty to support hydrogen supply and demand.

Definitions and standards for decarbonised hydrogen need to be developed based on life-cycle analysis, and certification systems are needed to help enable the trade of hydrogen and its derivatives. We think that targets and mandates are needed to stimulate demand for decarbonised hydrogen in hard-to-abate sectors, as well as measures to increase its supply.  

See our Hydrogen webpage.

We have engaged with governments and international organisations directly. We have also worked with industry associations and other initiatives to advocate hydrogen policy, including the Hydrogen Council, the World Business Council for Sustainable Development (WBCSD) and the Sustainable Markets Initiative (SMI).

CCS policy and regulation to support decarbonisation

We support policy and regulatory frameworks to support broad-scale commercial deployment of CCS. Key components include:

• Strong government incentives for CCS projects;
• Robust carbon pricing schemes which include CCS-based emission reductions and removals as compliance pathways;
• Measures to prevent economic carbon leakage;
• Transparent, clear and streamlined processes for permitting and licensing across CCS value chains;
• A regulatory regime that promotes high standards for the design, construction, operation and post-closure phases of CCS infrastructure, including monitoring and verification, and risk-based mechanisms to transfer long-term liability for stored CO₂ to the state; and
• Bilateral agreements and common standards to facilitate transfers of CO₂ and trading of CCS credit instruments between countries.

See our CCS webpage.

We have engaged with governments and international organisations directly on this issue.

We have also worked with industry associations and other initiatives to advocate policies that support CCS deployment, including the Oil and Gas Climate Initiative (OGCI), Global CCS Institute (GCCSI), Carbon Capture and Storage Association (CCSA) and CCS+ Initiative.

Our CCS technical experts often present their research and findings at conferences to promote knowledge development with, and among, government regulators, CCS practitioners, and interested parties.

Recognition of role of high integrity carbon credits in decarbonisation

We call on governments and policymakers to recognise the value of high-quality carbon credits as an immediately-deployable decarbonisation tool that drives much-needed finance to projects, communities and at-risk ecosystems.

We believe that public and private investment in the protection and restoration of natural ecosystems should be incentivised, alongside transparent use of carbon compensation that complements and does not displace efforts to avoid and reduce greenhouse gas emissions.

We believe it is important to ensure high integrity for all carbon credits, consistent with international standards to support fungibility in global markets and continued investment, through clearly defined frameworks for monitoring, reporting, and verification (MRV).

See our nature-based solutions webpage, which includes our views on high-quality nature-based solutions projects and associated carbon credits. See the Shell Energy Transition Strategy 2024 for our views on the role of carbon credits as an important tool to reach net-zero emissions.

We have engaged with governments, international organisations and civil society directly on this topic. We have hosted site visits for government officials and other key stakeholders at some of our nature-based solutions project sites to highlight best practices.

We have worked to support investment in high quality carbon credits and their responsible use as a decarbonisation tool through industry associations and various initiatives. We have also provided input to support the continued development and evolution of voluntary carbon market (VCM) policies and technical standards.

These engagements include:

• The Natural Climate Solutions (NCS) Alliance, convened by the World Business Council for Sustainable Development (WBCSD), which published content including A Buyer’s Guide to Natural Climate Solutions Carbon Credits (September 2024).
• The International Emissions Trading Association (IETA), which published Guidelines for High Integrity Use of Carbon Credits (April 2024).
• The Business Partnership for Market Implementation (B-PMI), convened by IETA.
• The International Chamber of Commerce (ICC), which published the report The role of voluntary carbon markets in mobilising finance to accelerate climate action (November 2024).
• The ALMA Brasil partnership, led by the Oil and Gas Climate Initiative (OGCI).
• Industry standards organisations including Verra’s Verified Carbon Standard.

International Civil Aviation Organization (ICAO) net-zero emissions by 2050 goal

ICAO adopted the goal in 2022.

ICAO collective global aspirational “Vision” to reduce CO₂ emissions in international aviation by 5% by 2030, compared to zero cleaner energy use

We support the ICAO goal of net-zero emissions by 2050. We continue to work with ICAO and its member states, asking for global commitment to policy frameworks to achieve the goal. ICAO member states have signed up to a collective global aspirational vision to reduce carbon dioxide (CO₂) emissions in international aviation by 5% by 2030 through the use of SAF and lower-carbon aviation fuels.

See also our decarbonising aviation webpage.

We are members of the Advanced Biofuels Association (ABFA) and Ipieca, both of which have observer status at ICAO’s Committee on Aviation Environmental Protection. We also work directly with some ICAO member states, and we have a strategic partnership with the International Air Transport Association.

Example of our advocacy:

• In December 2024, our Chief Climate Change Advisor, David Hone, spoke at ICAO’s 80th Anniversary event in Chicago about the role that book and claim can play in supporting the ICAO initiative of ‘No Country Left Behind".
• In July 2023, our former VP Aviation, Jan Toschka, presented alongside our EVP Low Carbon Solutions, Anna Mascolo, directly to the ICAO Council in the lead-up to the November ICAO Conference on Aviation and Alternative Fuels meeting. See our former VP Aviation’s article A global vision for sustainable aviation fuel (November 2023).

International Maritime Organization (IMO) net-zero emissions by 2050 pathway

We supported the IMO’s adoption of a revised greenhouse gas reduction strategy for international shipping that includes an ambition to reach net-zero emissions by, or around, 2050, supported by interim targets for 2030 and 2040. 

To help achieve this ambition, we called for the IMO to adopt a technical measure such as a fuel quality standard, which introduces a well-to-wake carbon intensity trajectory to drive decarbonisation of the energy used. We also advocated the use of financial mechanisms, such as a carbon price, to support the transition, as well as the need for energy efficiency measures, preferably based on energy consumption.

See our decarbonising shipping webpage, including 2023 report Decarbonising Shipping: All Hands On Deck.

Our advocacy is mainly through industry groups including the Getting to Zero Coalition and the UK Chamber of Shipping.

We are involved in industry groups that have observer status at the IMO including Ipieca, the Society for Gas as a Marine Fuel (SGMF), the Society of International Gas Tanker and Terminal Operators (SIGTTO), the International Bunker Industry Association (IBIA) and the Oil Companies International Marine Forum (OCIMF).

Heavy industry decarbonisation policy initiatives

We support policies to decarbonise heavy industry. These include mandates or quotas on low-carbon energy for industrial users, as well as financial support and incentives for equipment upgrades. We also support policies to stimulate demand for low-carbon products and the scale up of energies and innovative technologies (including decarbonised hydrogen, advanced biofuels and CCS) that will be key to decarbonising hard-to-electrify sectors.

See our Decarbonising Steel report.

We have participated in the Net-Zero Steel Initiative (NZSI) for the steel sector, Concrete Action for Climate for the concrete and cement sectors and Aluminium for Climate for the aluminium sector. We provided input to the sectoral decarbonisation roadmaps developed by these initiatives.