Shell weakened its 2030 carbon reduction target and scrapped a 2035 objective, citing expectations for lower power sales and strong demand for gas in the energy transition, even as it affirmed a plan to cut emissions to net zero by 2050. The changes to the targets are a central pillar in CEO Wael Sawan’s strategy revamp to focus on higher-margin projects, steady oil output and growth in production of natural gas in order to boost returns.
“In line with this shift to prioritizing value over volume in power, we will focus on select markets and segments. This includes selling more power to commercial customers and less to retail customers,” Shell said. “Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target.