Participating in the policy debates

Effective, efficient and equitable government policies will be critical to addressing climate change. We are actively participating in public policy debates, encouraging action and using what we know about energy to advise governments on the most effective policy choices.

The importance of government leadership is very clear. Without policies that reward lower carbon technologies and create a predictable, long-term cost for emitting greenhouse gas emissions (GHGs), individual companies will have no incentive to make the massive investments needed. We have stepped up our appeal to governments to lead on this issue and introduce effective policies to combat climate change.

Our appeal to governments when making climate change policies is four-fold:

Involve all major emitting countries and all sectors - not just industry - to avoid distorting competition. This means ways need to be found to involve developing countries and help them take a lower emission energy path, for example via the Clean Development Mechanism - opens in a new window
Develop stable, long-term GHG targets and price signals to allow companies to plan and make investments in new facilities that will run for 50 years or more and energy users to change behaviour and invest in energy efficient equipment
Use emissions trading systems more widely to manage GHGs from industry and include reductions from CO2 capture and storage in these schemes
Design better-targeted and stable support for alternative energy sources, to help them reach the point that they can compete without further subsidies.

Specific climate change policy initiatives we support

We participate in the Corporate Leaders Group on Climate Change in the UK. Composed of 19 companies, the group is part of His Royal Highness the Prince of Wales’ Cambridge Business and Environment Programme. It is encouraging the UK Government to take market-based actions to address GHG emissions at home and provide international leadership on climate change. Shell is also member of a similar group forming in the EU.
We sponsor the Massachusetts Institute of Technology Joint Program - opens in new window on the Science and Policy of Global Change, an interdisciplinary organisation that conducts research, independent policy analysis, and public communication on global environmental change.
We are working with the Pew Center for Climate Change, a non-profit research and policy organization in the U.S, to help inform the debate on the risks, challenges and solutions to climate change. Find out more about the Pew Center - opens in new window.
We are members of the International Emissions Trading Association (IETA) and participate in their regular series of events, discussion panels and conferences. Find out more about the IETA - opens in new window.
We have been actively contributing to the International Petroleum Industry Environmental Conservation Association (IPIECA) climate change work programme, which aims to increase understanding and awareness of climate change issues within the oil and gas industry and to constructively work with key stakeholders. For further information please visit their website at www.ipieca.org - opens in new window.
We have been actively contributing to the International Petroleum Industry Environmental Conservation Association (IPIECA) climate change work programme, which aims to increase understanding and awareness of climate change issues within the oil and gas industry and to constructively work with key stakeholders. For further information please visit their website at www.ipieca.org - opens in new window.
We are members of the World Business Council for Sustainable Development (WBCSD) and actively participate in their Energy and Climate Working Group. We have contributed to:
- The preparation of their publication Facts and Trends to 2050 (PDF, size 2Mb) - opens in new window, which discusses the energy transitions required over the next 50 years to both meet demand growth and address the issue of climate change.
- Pathways to 2050 - Energy & Climate Change (PDF, size 2.9Mb) - opens in new window, which built on this publication, providing a more detailed overview of potential pathways to reducing CO2 emissions.
- Policy Directions to 2050: A business contribution to the dialogues on cooperative action - opens in new window, a report which asserts that the only way to combat climate change is through decisive, concerted and sustained actions between governments, businesses and consumers.

Presentations at forums and conferences

We regularly share our experience with energy and climate change policy and put forward our own views.

2007

In January 2007, our Chief Executive called for effective government regulation on climate change in an open letter to the Financial Times.
The president of Shell Oil Company in the USA is calling publicly on behalf of Shell for government measures to set a mandatory limit on GHG emissions and allow firms to trade emission allowances.
At a conference organised by the Pew Centre and Point Carbon in Washington D.C. in January 2007, we put forward design ideas for a possible future US GHG "cap-and-trade" system, based on our experience operating within the EU-ETS. The EU-ETS so far - An industry perspective (PDF, size 676Kb) - opens in new window.
At a Shell event at Oxford University in February 2007 we gave a presentation drawn from our recent work with World Business Council for Sustainable Development (WBCSD). The presentation discusses the implications of a carbon constrained future on our future energy mix through to 2050. Energy and Climate Change: Pathways to 2050 (PDF, size 2.72 Mb) - opens in new window.
Recent speeches can be found in our Media Centre.

2006

We are participating in the Corporate Leaders Group on Climate Change in the UK. Composed of 19 companies, the group is part of His Royal Highness the Prince of Wales’ Cambridge Business and Environment Programme. It is encouraging the UK Government to take market-based actions to address GHG emissions at home and provide international leadership on climate change.
Shell in the UK participated in the development of a supplement on Climate Change for the Observer newspaper. Included within the supplement was a wallchart illustrating the types of energy infrastructure changes needed in the UK by 2050 to meet a CO2 reduction of some 60%.

2005

At the PointCarbon "Carbon Market Insights 2005" conference, we presented our views on various approaches to managing greenhouse gas emissions in the road transport sector. Road Transport and Greenhouse Gases (PDF, size 967Kb) - opens in new window.

2004

At the Environmental Finance Conference in London in February 2004 we presented an overview on how our businesses were getting ready for the EU Emissions Trading System. Preparing for EU emissions trading (PDF, size 1.35Mb) - opens in new window.
At the May 2004 Centre for European Policy Studies (CEPS) climate change conference we presented our views on the challenge in the EU to meet the Kyoto targets following the first release of EU-ETS national allocation plans (NAP) and how that challenge presents itself to industry looking for investment signals. EU-ETS National Allocation Plans (PDF, size 212Kb) - opens in new window.

2003

At the Environmental Finance Conference in London in early 2003 we discussed the challenge of meeting EU Kyoto targets. The EU trading system, Allocation is the key (PDF, size 145Kb) - opens in new window.
At a conference in London we expanded the discussion to look at how allowance allocation in an emissions trading scheme is best handled so as to encourage industry to invest in emission reduction projects. Allowance Allocation Principles (PDF, size 216Kb) - opens in new window.
At a seminar held by the Netherlands Embassy in Tokyo, we presented our views (pdf) on the situation in Japan as stakeholders there look for schemes to assist in the delivery of its Kyoto obligation. Implementing the Kyoto Protocol, the role of business (PDF, size 487Kb) - opens in new window.
At the IETA Annual Conference held in Ottawa, Canada in October 2003, we presented our thoughts on the importance of the GHG commodity itself, how it is affected by government legislation and the potential role that trading platforms may have in a world with GHG trading. Creating Greenhouse Gas Assets (PDF, size 307Kb) - opens in new window.

→ Shell Sustainability Report 2006

Visit the online Shell Sustainability Report 2006 and discover what we say about climate change - opens in a new window.

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