Shell Quietly Ditches Failed Carbon Credit Scheme, by Tyler Durden

The carbon credit schemes aren’t panning out. From Tyler Durden at zerohedge.com:

Shell, Europe’s largest oil company, has quietly shelved the world’s largest corporate plan to develop carbon offsets, after CEO Wael Sawan laid out an updated strategy for the company that included cutting costs and doubling down on profit centers (oil and gas) – which notably omitted any mention of the company’s prior commitment to spend up to $100 million per year to build a ‘pipeline’ of carbon credits as part of the firm’s promise to achieve ‘net zero’ emissions by 2050, Bloomberg reports.

The pullback reflects both Sawan’s renewed commitment to the oil-and-gas business that generates most of Shell’s profits, and an admission that the prior goals were simply unattainable. Over the past two years, Shell barely made a dent. It spent $95 million, less than half of its initial budget, to build or invest in a portfolio of carbon projects from Western Africa to the Brazilian Amazon to Australian farmlands. They’ve generated few if any offsets, and Shell has struggled to find projects that meet its standards for quality.

According to investigations by Bloomberg Green (how cute), many offset programs don’t deliver the environmental benefits they promise. In announcing their now-shelved programs, Shell sought to solve that problem with stringent requirements, deep pockets, and engineering expertise. What they learned was something any idiot could have told you: there’s no effective way to maintain a large enough offset program to make a difference.

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