Shell's Controversial Climate Strategy

Shell's approach to achieving climate targets involves the extensive use of carbon credits, which allow the company to offset its emissions by investing in projects that remove carbon from the atmosphere. The carbon credit market, currently worth around $1.4 billion, enables companies to purchase credits – each representing one ton of CO2 – from various global projects such as reforestation and carbon capture. Despite Shell being the largest user of these credits, some analysts argue that this reliance may serve as a smokescreen, allowing the company to continue its fossil fuel operations without making substantial changes to its business model. Critics contend that while carbon credits can provide short-term emission reductions, they may ultimately lock in unsustainable practices instead of facilitating the necessary transition to a low-carbon economy.