Carbon compensation

Compensating emissions from LNG cargoes
Shell's offer of GIIGNL framework
aligned GHG Neutral LNG

For emissions that cannot be reduced or avoided today from the production and use of gas,
high-quality carbon credits can be used to compensate for these emissions

When CO₂ emissions cannot be
further avoided or reduced

An investment can be made
in a project elsewhere

Investment in this project enables capture/reduction of CO₂ emissions that otherwise would not have been possible

The emission reductions are independently verified and carbon credits are issued that can be retired to demonstrate that an amount of carbon dioxide equivalent has been offset

We have adopted the GIIGNL Framework and now offer LNG cargoes aligned to the GIIGNL's MRV and GHG-Neutral Framework.

Key benefits of our offer include:

Better emissions footprint calculation

Conformity with global standards

Use of quality carbon credits

Third party assurance

Compensating emissions across the LNG value chain

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Better emissions footprint calculation

We have developed our own well-to-wire carbon footprint model for calculation of GHG intensity of an LNG cargo from a specific country or asset to a specific country or customer. The model is assured independently against.

ISO 14067:2018 - "Carbon footprint of products"
PAS 2050 - "Specification for the assessment of the life cycle greenhouse gas emissions of goods and services"

Conformity with global standards

Our offer conforms to PAS 2060, an internationally recognised standard for carbon neutrality. PAS 2060 standard specifies a four-stage process to demonstrate carbon neutrality which involves:

Assessment of GHG emissions based on accurate measurement data
Reduction of emissions through a target driven carbon management plan
Offsetting of excess emissions, often by purchasing carbon credits
Documentation and verification through qualifying explanatory statements and public disclosure which requires a long-term decarbonisation commitment, an emission reduction plan and use of offsets that meet best practice principles.

Use of quality carbon credits

The credits Shell uses to offset emissions from LNG come from projects verified against the globally recognised standards and in addition we have our own internal technical team consisting of specialists in geomatics, social performance, technical project analysis and biodiversity who evaluate projects for quality.

See our global portfolio of carbon projects

Third party assurance

Independent verification of overall offer by Lloyd's Register Quality Assurance (LRQA)
Each LNG cargo comes with a third party assured cargo statement as specified by the framework

Compensating emissions across the LNG value chain

We offset GHG emissions across all scopes - from production to end use (full lifecycle).

Understanding the GIIGNL Framework
PDF (1.11MB)