Our climate target

Shell is aiming to become a net-zero emissions energy business by 2050 or sooner.

We intend to meet our customers’ demand for cleaner energy, keeping in pace with society.

A journey

With this approach, we want to contribute to achieving a net-zero world, where society stops adding to the amount of greenhouse gases (GHGs) in the atmosphere.

This supports the most ambitious goal to tackle climate change laid out in the Paris Agreement: to limit the rise in average global warming to 1.5°Celsius.

Becoming a net-zero emissions energy business means that we are reducing emissions from our operations, and other energy products we sell to our customers. It also means capturing and storing any remaining emissions using technology or balancing them with offsets.

We are transforming our business to meet our target, providing more low-carbon energy such as hydrogen, electricity generated by solar power and investing in carbon farming.

We are also working with our customers as they make changes too, including in sectors that are difficult to decarbonise such as aviation, shipping, road freight and industry.

It is going to take a lot of work. We are on a journey and recognise the need to change.

Watch how Shell is accelerating to net zero

Download Scope Emissions video transcript (DOC 0.1MB)

Our approach

Shell will reduce emissions from our own operations, including the production of oil and gas, addressing energy efficiency over time and capturing or offsetting unavoidable greenhouse gas emissions.

Most GHG emissions come from our customers’ use of our products. So we are also looking for ways to help customers cut these emissions.

We play three roles

We are an energy provider

We are working to offer customers more, lower-carbon products, from renewable electricity to hydrogen. We aim to reduce the carbon intensity of the energy products we sell by 30% by 2035 and by 65% by 2050 compared with 2016, keeping in pace with society.

We play three roles

We are an energy user

Our target is to achieve net-zero emissions from all our operations, as well as from the energy we need to power them. That means that any greenhouse gas emissions from making our products that cannot be avoided will be captured or offset using technology and nature.

We play three roles

We are a partner for change

We are working with our customers to address the emissions created when they use products bought from us, as well as helping them find ways to reduce their overall carbon footprint. We are also coming together with businesses, governments and other experts to address emissions in different sectors.

What are we already doing?

At Shell we are already changing as an energy provider, an energy user and a partner for change.

Avoid, reduce, compensate

As an energy provider

For business

Today, electricity makes up almost 20% of final global energy use. By 2060, it could be 50%. Electrification is critical for decarbonisation – society is transitioning to much greater levels of electrification and Shell Energy is playing a leading role. We have power operations in more than 20 countries, and Shell Energy is Australia’s largest commercial and industrial electricity retailer, providing our customers with a suite of solutions to help them meet their energy and sustainability goals.

Shell Energy

As an energy provider

Home battery solutions

sonnen is a part of the Shell family, providing integrated battery storage systems to households and small businesses with rooftop solar panels. Owners of sonnen batteries can share their surplus energy with each other in a smart, optimised way. In December 2021, sonnen announced the launch of sonnenBatterie Evo, the company’s first outdoor home battery solution developed specifically for Australia and New Zealand.


As an energy user

Solar energy

The Gangarri Solar Project is a 120 Megawatt (MW) solar farm located on approximately 446 hectares (equivalent to 446 rugby fields) in the Western Downs region of Queensland. The solar project is currently in commissioning and testing phase. Once fully operational, it will generate enough energy to power the equivalent of over 50,000 homes. Shell also has a 49% stake in ESCO Pacific, one of Australia’s most successful solar companies, focused on the development and long-term management of utility scale solar projects.

The Gangarri Solar Project

As a partner for change

Investing in nature

Nature-based solutions, or carbon farming, are projects which protect, transform or restore land. In this way, nature absorbs more CO2 emissions from the atmosphere. These projects can lead to the marketing, trading and sale of carbon credits. A credit represents the avoidance or removal of greenhouse gases equivalent to 1 tonne of CO2. Select Carbon, a part of the Shell family, has helped Australian landholders incorporate carbon farming in more than 70 projects covering around 10 million hectares. Shell also has a 800-hectare regeneration project of endangered native forest in the Brigalow ecological community in Queensland.

Carbon farming

As an energy provider

At home

Globally, we are exploring opportunities in home energy, with a focus on a renewable offering. In Australia, Shell Energy have announced it will acquire Powershop*, an online energy retailer serving more than 185,000 customers. This broadens our customer portfolio to include Australian households, extending Shell Energy’s existing position as Australia’s largest dedicated retailer of electricity to commercial and industrial customers.

*The acquisition is subject to regulatory approvals. It is expected to be completed in the first half of 2022.

Shell Energy

As an energy provider

Developing hydrogen

Shell is part of several initiatives aimed at encouraging the adoption of hydrogen in transport, from a hydrogen refuelling network for passenger cars in California to the H2Accelerate consortium which aims to foster the conditions for the mass market roll-out of hydrogen trucks in Europe. In Australia, Shell is working together with steel manufacturer BlueScope to explore and develop renewable hydrogen projects. These include investigating a pilot-scale 10MW renewable hydrogen electrolyser at Bluescope’s Port Kembla Steelworks and collaborating with other organisations to develop a hydrogen hub in the Illawarra region of New South Wales. We are also working closely with partners on the delivery of the world’s first liquefied hydrogen carrier. The ship, Suiso Frontier, has undertaken sea trials and will be a demonstration case for potential large-scale distribution of hydrogen between Australia and Japan.

Shell Hydrogen

As an energy provider

Wind power

Building on over 50 years of experience in offshore oil and gas engineering, we want to lead the way in offshore wind through system-wide collaboration and innovation to deliver cleaner power at scale. We have more than 6 gigawatts (GW) of wind projects in our portfolio and in development. We are also investing in the next generation of wind technology, including floating wind.

Our wind projects

Thank you for exploring