Realising the role of nature
We are increasing our investment in protecting or developing natural ecosystems, such as forests, grasslands and wetlands, to capture carbon and help our customers offset their emissions using carbon credits.
We recognise that nature-based solutions are a tool that can only ever complement, and not replace, other solutions we are deploying to help society move to a low-carbon future.
Investing directly in natural ecosystems
In 2020, Shell invested around $90 million in nature-based projects that reduce or avoid emissions and can also benefit ecosystems by improving biodiversity, water quality and flood protection.
In 2020, we acquired Select Carbon, a specialist company that partners with farmers, pastoralists and other landowners in Australia to develop carbon farming projects, where plants are grown and soil managed to absorb carbon dioxide from the atmosphere. Select Carbon runs more than 70 carbon farming projects that span an area of more than 10 million hectares. The carbon credits generated by the farms are sold through the Australian government’s Emissions Reduction Fund and other markets, creating additional revenues for farmers and landowners. Select Carbon is our first acquisition in nature-based solutions.
Examples of Shell’s direct investments in natural ecosystems [A]
[A] Selection of nature-based solutions projects announced between 2019 and 2020
Expanding carbon-neutral choices
In 2020, we increased the number of drivers and business customers who use our nature-based carbon credits to offset the life-cycle CO2-equivalent emissions generated by their use of the Shell fuel they buy.
We are increasing our investment in protecting or developing natural ecosystems, including in the Netherlands where we are working with the state forestry service to plant 5 million trees.
We have made carbon-neutral driving available to our fleet customers in 12 countries and to retail customers at more than 4,600 service stations in Austria, Canada, Denmark, Germany, the Netherlands, Switzerland and the UK.
We also offer a range of products with nature-based carbon credits, including home energy in the UK, liquefied natural gas in Asia (see Natural gas), bitumen in Europe and selected lubricants.
How carbon offsets work
Emissions trading
We are one of the world’s most established traders of carbon credits and have been operating in compliance and voluntary emissions markets since 2003.
We have a global portfolio of nature-based projects, for example, the Katingan Peatland Restoration and Conservation Project in Indonesia, through which we can help our customers to offset their CO2 emitted from their use of fuels they buy from us. We also provide customers with tailor-made solutions for environmental compliance markets globally. Compliance markets are a mechanism through which companies can comply with environmental regulations and manage their emissions by trading carbon credits.
Screening our investments
In 2020, we strengthened our screening approach aimed at ensuring that nature-based credits used by Shell meet accepted standards of quality. All projects we invest in or buy from are certified under independent carbon credit standards. Each project must deliver broader environmental and social benefits and the organisations that develop the projects must maintain appropriate health, safety, security and social governance standards. Our project screening processes are audited by an independent third party.
Learn more about our work in nature-based solutions at www.shell.com/energy-and-innovation/new-energies/nature-based-solutions
