Taskforce on Scaling Voluntary Carbon Markets

2021 will be a defining year for the voluntary carbon market. In 2020, the number of companies making net-zero emission pledges tripled to more than 1,500. As we head towards COP26 this year, many will start to set out defined pathways for reaching that goal.

For some businesses, avoiding and reducing emissions will not be enough to reach zero, or an emissions trajectory consistent with the Paris Agreement. Carbon credits can help. 95% of Shell Environmental Products’ customers are already actively reducing their carbon footprint, adopting cleaner technologies and new operating models to reduce overall emissions, but they are looking for carbon credits to help them close the gap.

To meet the increasing demand for credits the market will need to expand, by at least 15 times. But it is vital that growth does not come at the expense of credibility. As more businesses transition towards net zero, we need a more liquid and transparent carbon market, where businesses and their stakeholders can be sure of the efficacy of the credits they buy.

Recognising this, the Taskforce on Scaling Voluntary Carbon Markets was launched last year by a group of more than 40 business leaders. By creating global principles for verifying carbon credits and transparent trading infrastructure, the Taskforce aims to scale up the market, raise standards and build confidence in the integrity of carbon offsetting.

We are excited to be playing an active role in that. Shell joined the Taskforce last year, because we believe that high-quality carbon credits are an essential complement to absolute emissions reductions, that finance should be channelled into projects that mitigate or remove greenhouse gases right now, while companies develop the tools to avoid or reduce their emissions.

We want companies to be able to set out plans for reducing their carbon footprint, knowing that any carbon credits they include make a real impact. We want a market that ensures more buyers have access to quality projects that deliver additional benefits to the communities around them.

Our team has benefited from over 15 years building relationships with projects and we know the importance of due diligence. We believe in the quality of the credits in our portfolio. We are looking forward to working with the Taskforce to share our experience and learn from others, helping to grow a voluntary carbon market that enables more companies to meet their net-zero ambitions with confidence.

Qinghai Afforestation Project

Located on the Qinghai-Tibetan Plateau in China, the Qinghai Afforestation Project covers an area of over 2.1 million hectares.

Over the recent decades, much of this land has suffered from desertification – the transformation of arable healthy ecosystems into desert, degraded by deforestation, overgrazing of livestock and overuse of water.

By planting trees, the projects help to improve soil quality and preserve water, preventing further damage and enabling local communities to continue farming, as well as providing jobs and extending valuable habitat.

The three projects in Haidong City and Xining City will grow 39,600 hectares of new forest and a further 2.1 million hectares will be managed to promote and conserve biodiversity. This includes protecting the habitat of two critically endangered species, the Alpine Musk Deer and the Saker Falcon, both native to the area.

Through the planting and preserving of forest, these are expected to remove and store over 1.865 million tonnes of carbon from the atmosphere.

These projects, developed by Shell along with Qinghai Forestry Bureau, are independently verified under the VCS and CCB standards.

For more on our project portfolio click here

The Guatemalan Conservation Coast

The Guatemalan Conservation Coast Project is located in Izabal on a stretch of Caribbean Coast, under threat from deforestation and unsustainable land use activities such as ‘slash and burn’ agriculture and cattle ranching.

The project brings together hundreds of landowners to protect parcels of forest that together make up a total of 60,000 hectares.

As well as carbon emission avoidance, the project impact is linked to 12 of the United Nations’ Sustainable Development Goals and protects the habitats of 30 high conservation value species, including Jaguar, Baird’s Tapir and the West Indian Manatee.

Activities on the ground to support sustainable livelihoods include working with local farmers, as well as developing the coastline into a thriving eco-tourism hub. In addition, protecting forests along coastlines can help in coastal defence and disaster risk reduction for local communities.

The project has already contributed to the creation or support of 716 jobs, 30% of which are held by women.

The project is verified under the VCS and CCB standards, aims to avoid the emission of 6.1 million tonnes of CO₂ in 2021.

For more on our project portfolio click here

The Breathing Space Improved Cooking Stoves Programme

Traditional cooking methods in much of India are harmful to people’s health – especially women who most often prepare meals. Typical cooking stoves cause indoor air pollution, which kills over a million people each year in India alone. Many of these stoves also require a lot of firewood, further depleting natural forests and emitting dangerous greenhouse gases.

Developed by Envirofit International Limited, The Breathing Space Improved Cooking Stoves Programme operates across India and to provide households with cleaner burning, energy efficient cook stoves.

The stoves reduce smoke and toxic emissions by up to 80% and bring household air pollution down to 46% below the World Health Organisation’s exposure limit.Fuel use is also reduced by up to 60% which reduces a family’s time needed for firewood collection.

By helping ensure healthy lives and promoting wellbeing, the project supports goal 3 of the United Nations’ Sustainable Development Goals, as well as goals 13 and 15, through protecting and promoting sustainable use of ecosystems.

The project is verified by Gold Standard and reduces the emission of 110,000 tonnes of CO₂e annually.

For more on our project portfolio click here

Looking for net zero?

For every organisation embarking on their net-zero journey, 2021 can become a defining year. Businesses across the planet, of all shapes and sizes, from every sector, are joining together in taking action. The complexities of reaching net zero require a sophisticated and multifaceted response. Carbon credits are only part of the story. But more and more businesses are recognising that carbon credits can make a difference for their customers, their employees and their decarbonisation journey.