Shell retired 20 million tonnes of carbon offsets in 2023, compared with 4.1 million tonnes that were included in its 2022 net carbon intensity. The oil giant will continue its efforts to halve emissions from its operations by 2030, compared with 2016 levels.
Shell’s Energy Transition Strategy
Carbon dioxide emissions from the energy system comprised almost three-quarters of global greenhouse gas emissions in 2023, per Shell’s report.

The implementation of stricter government policies could facilitate a reduction in carbon emissions at a pace aligning with the temperature objectives outlined in the Paris Agreement. Even without such policies, estimates say that global demand for fossil fuels would decrease from the current level of about 80% to below 70% by 2040.
Should the world adopt a trajectory towards achieving net zero emissions by 2050, this figure could drop to 50%. This shift will be primarily driven by the increased adoption of electrification and the expansion of renewable energy generation.
In its recently released first Energy Transition Strategy 2024 update, Shell revealed a new ambition to decrease customer emissions resulting from the use of its oil products by 15-20% by 2030 compared to 2021 levels.
The report also underscores the company’s commitment to achieving net zero emissions across all operations and energy products by 2050 as seen below.
Shell Net Zero Target

Wael Sawan, Shell’s Chief Executive Officer, highlighted the pivotal role of energy in development and emphasized Shell’s dedication to providing both present energy needs and building a low-carbon energy system for the future. The strategy focuses on performance, discipline, and simplification to maximize impact throughout the energy transition while creating value for investors and customers. Sawan further noted that:
“By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition.”
Progress in Action
The update outlines Shell’s progress in various areas:
- Reduction in Emissions: By the end of 2023, Shell had achieved over 60% of its target to halve emissions from its operations, also known as Scope 1 and 2 emissions, by 2030 compared to 2016 levels. Notably, the company exceeded targets set by signatories to the Oil and Gas Decarbonization Charter agreed at COP28.
RELATED: Oil & Gas Firms to Emit 150B Metric Tons of Carbon Pollution
- Methane Emissions Reduction: Shell achieved 0.05% methane emissions intensity in 2023, significantly below its target of 0.2%.
- Carbon Intensity Reduction: Shell achieved a 6.3% reduction in the net carbon intensity of energy products sold in 2023 compared to 2016. This is the third consecutive year of hitting this target.
The oil major aims to focus on markets and segments where it can add the most value. These include the expansion of renewable power in key regions such as Australia, Europe, India, and the USA.
Consequently, there will be a lower total growth of power sales by 2030, leading to an update in the net carbon intensity target, now targeting a 15-20% reduction.
To support its transition to a net zero emissions energy business, Shell plans to invest $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions.
Last year, Shell invested over $5 billion on these solutions, which is over 23% of its total capital spending. These investments include electric vehicle charging infrastructure, biofuels, renewable power, hydrogen, and carbon capture and storage technologies.
Shell aims to scale up these technologies to make them more affordable for customers. The energy company also advocates for policies supporting national net zero goals, including carbon pricing.
Shell’s Strategic Shifts and Sustainable Practices

In 2023, Shell’s net carbon intensity accounted for 20 million carbon credits, of which 4 million were linked to energy products. Of the 20 million retired carbon credits, 85% were certified by Verra, 9% by the American Carbon registry, 6% by Gold Standard, and less than 1% via Australian Carbon Credit Units.
Europe’s largest oil major discreetly abandoned its plan to allocate $100 million annually to carbon credits last year. Shell’s plan, by far, is the largest carbon offset program among corporations, announced 6 months after Wael Sawan became the CEO.
- READ MORE: Shell Scraps Its $100M Carbon Offset Plan
Sawan unveiled a significant strategy shift for Shell, indicating the company’s intention to sustain its current level of oil production until 2030. The revised strategy prioritizes cost reduction and enhancing shareholder profits.
Oil majors have faced growing investor pressure to prioritize their most profitable ventures, particularly following periods of robust profits alongside declining returns from renewable energy ventures.
As the world’s largest liquefied natural gas (LNG) trader, Shell emphasized its belief in gas and LNG’s pivotal role within the energy transition. It remarked that these energy resources are vital alternatives to harmful carbon sources in power plants.
The oil giant earned a net profit of $28 billion in 2023 amid strong LNG and oil sales.
In conclusion, Shell’s energy transition update reflects its commitment to reducing emissions, investing in low-carbon solutions, and driving sustainable energy practices to achieve its net zero emissions target by 2050.
The post Shell Retired 20 Million Carbon Offsets in 2023, Weakens 2030 Climate Goal appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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