Shell 2050: Path to a Cleaner Energy Future
The Need for Change
On February 19, 2021, the United States re-entered the UN Paris Agreement on climate change. This legally binding treaty between countries has the goal of limiting global warming to well below 2 degrees Celsius, preferably 1.5 degrees Celsius, compared to pre-industrial levels. According to the United Nations Framework Convention on Climate Change (UNFCCC), countries should “reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate neutral world by mid-century.” To reduce greenhouse gas emissions, society needs new ways to produce and use energy.
A New Strategy for Shell
Shell recently announced its “Powering Progress” strategy. Powering Progress lays out four goals: achieving net-zero emissions, powering lives, delivering shareholder value and respecting nature.
Shell’s target is to become a net-zero emissions energy business by 2050, in step with society[1] with short-term and medium-term targets along the way. As it works to meet this target, Shell plays three key roles:
Energy Provider
Becoming a net-zero emissions business means offering customers more low-carbon products, from renewable electricity, to charging for electric vehicles and hydrogen. Shell aims to reduce the carbon intensity of the energy products it sells by 100% by 2050, in step with society1.
Energy User
Shell’s target is to achieve net-zero emissions from all its operations, as well as from the energy it needs to power them. That means that any greenhouse gas emissions from making its products that cannot be avoided will be captured or offset using technology and nature.
Partner for Change
Shell is helping its customers address the GHG emissions they produce when they use products bought from Shell. Shell is also helping its customers to find ways to reduce their overall carbon footprints. Partnering with others includes supporting government policies to reduce carbon emissions, sector by sector.
For instance, Shell works with large companies including Microsoft and Wells Fargo to help them meet their own renewable energy goals.
Shell is also using advanced technologies to progress with its goals. Examples include drones in the Permian Basin, USA, that detect methane emissions and improve energy efficiency and the Quest carbon capture and storage facility in Canada that has already captured and safely stored over 5 million tons of CO2. To explore more examples of innovation from Shell, click here.
Net Impact’s Collaboration
At Net Impact, creating a more sustainable world by combating climate change is an integral part of what we do and who we are. We facilitate the necessary collaborations between corporations and passionate students and professionals to take part in conversations that lead to critical solutions. An excellent example of this is the 2020-2021 Future of Energy Challenge: Net-Zero Emissions, supported by Shell.
The 2020-2021 Future of Energy Challenge: Net-Zero Emissions asks the next generation of thinkers, inventors, and entrepreneurs to design collaborative, innovative ideas addressing a reduction in scope 3 emissions.
This year select teams will proceed to an eight-week incubator program co-sponsored by Shell and Net Impact. At the end of the eight weeks, teams will be expected to be at a Proof of Concept stage, and the winning team will receive $10,000 in resources and funding to invest in the next stage of developing its clean energy start-up. This unique opportunity allows aspiring leaders in the energy field to gain access to Shell's research teams, hone in on an idea, gain support from Net Impact, and ultimately bring solutions to life.
Applications are still open, and teams that submit their solution concepts by the second early-bird deadline of March 15, 2021, will receive customized feedback on their submissions with the opportunity to re-submit their concepts by the final deadline of April 9, 2021. Visit the 2020-2021 Future of Energy Challenge: Net-Zero Emissions program page to review the eligibility, benefits, and timeline.
We are thankful for our collaboration with Shell because we know that the only way to make progress in the Energy Transition is to do it together.
About Shell
Shell's purpose is to power progress together with more and cleaner energy solutions. Shell believes that rising standards of living for a growing global population are likely to continue to drive demand for energy for years to come. At the same time, the need to tackle climate change means there are transitions underway to a lower-carbon, multi-source energy system. Shell’s technological capacity, customer-mindset, operational experience and market knowledge mean it is at the forefront of innovative and collaborative approaches to help build a sustainable energy future. Learn more at https://www.shell.com/.
About Net Impact
Net Impact is a global community of students and professionals who aspire to be effective drivers of economic, social, and environmental change. Our programs—delivered from our headquarters in Oakland, CA, as well as globally through our 400+ Chapters—connect our members to the skills, experiences, and people that will allow them to have the greatest impact. With over 140,000 members, Net Impact takes on social challenges, protects the environment, invents new products, and orients business toward the greater good. In short, we help our members turn their passions into a lifetime of world-changing action. Visit www.netimpact.org.
Disclaimer: We may refer to Shell’s “Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries. Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, Shell’s operating plans, outlooks, budgets and pricing assumptions do not reflect our net-zero emissions target. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans, outlooks, budgets and pricing assumptions to reflect this movement.
[1] We may refer to Shell’s “Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries. Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, Shell’s operating plans, outlooks, budgets and pricing assumptions do not reflect our net-zero emissions target. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans, outlooks, budgets and pricing assumptions to reflect this movement.
