Carbon credit mess: Shell gives away twice as many carbon credits as CO2 savings
The North American carbon credit mess, or scam, continues. The latest chapter in the 'green' initiative resulted from the discovery that multinational Shell sold 'ghost' carbon credits that were double the volume of emissions the company actually avoided, according to the FT.
Shell has reportedly sold millions of carbon credits, tied to CO₂ removal, to major Canadian oil sands companies, despite doubts about the validity of the claimed emissions reductions. All for eight years.
Consumer loans granted to Shell. The part that does not actually correspond to savings in CO2 emissions is in red
Keith Stewart of Greenpeace Canada commented: “Selling emissions credits for reductions that never happened… literally makes climate change worse,” but also shows the great falsity of this whole system.
As part of a grant initiative by the Alberta provincial government to support the industry, Shell was allowed to register and sell carbon credits double the amount of emissions supposedly avoided by its Quest carbon capture plant from 2015 to 2021. However, this subsidy was phased out by 2022.
As a result, Shell was able to register 5.7 million credits which were then sold to major oil sands producers, including Chevron, Canadian Natural Resources, ConocoPhillips, Imperial Oil and Suncor Energy.
Alberta's Environment Ministry said the credit support scheme has not led to "additional emissions" from industrial polluters. Sure, but it distorted the entire carbon credit system.
Energy companies globally, including those in Canada, are calling for greater government support for carbon capture and storage initiatives. Alberta, known for its vast carbon-intensive oil resources, has seen a surge in production, hampering Canada's efforts to meet emissions reduction targets.
The Financial Times report noted that the Quest plant, operated by Shell Canada and co-owned by Canadian Natural Resources, Chevron and Shell Canada , is an integral part of the Scotford processing and refining complex. At Quest, CO₂ is extracted during the production of hydrogen gas, which is critical for converting tar sands bitumen into synthetic crude oil.
Qest Plant in Alberta Canada l
Canada offers substantial incentives for carbon capture (CCS) projects, but industry profitability remains challenging. Quest's annual report revealed a total cost of $167.90 per tonne of carbon avoided in 2022 , compared to Alberta's projected $50 carbon price for major industrial emitters. Capture cost three times more than subsidized.
Shell plant
Documents obtained by Greenpeace Canada, shared with the Financial Times, revealed that Shell initially sought a three-for-one deal on Quest's carbon credits. Alberta introduced a two-for-one scheme in 2011, exclusively for plants operating by the end of 2015, such as Quest. The incentive shrank to three-quarters of a credit by 2022 and was eventually eliminated as carbon prices rose. Basically instead of giving more carbon credits, he decided to give them more value, but in the end
“At the end of the day, the oil and gas sector, and tar sands companies in particular, need to work hard to reduce emissions,” concluded Jonathan Wilkinson, Canada's Minister of Energy and Natural Resources.
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The article Carbon credits mess: Shell gives away twice as many carbon credits as CO2 savings comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/pasticcio-crediti-al-carbonio-shell-cede-il-doppio-dei-crediti-di-carbonio-rispetto-ai-risparmi-di-co2/ on Tue, 07 May 2024 06:00:03 +0000.