Shell softens 2030 carbon emissions target

Shell (SHEL) is weakening its climate goals for 2030. The oil giant is now targeting a 15-20% reduction in the net carbon intensity of its products by 2030. In a 2021 report, that target had been 20%. The company also scrapped its target for 2035, but it did keep its goal of reaching net-zero emissions by 2050.

Yahoo Finance's Ines Ferré discusses Shell's move in the video above.

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Editor's note: This article was written by Stephanie Mikulich.

Video Transcript

JULIE HYMAN: Oil giant Shell affirms its plan to reach net zero emissions by 2050 while shaking up its near-term ambition on emission cuts. Here with more, Yahoo Finance's Ines Ferre. Ines.

INES FERRE: Hey Julie, yeah, that's right. So shall scaling back some of its targets for emissions and saying that it will aim to reduce its emissions-- customer emissions from the use of its oil products by 15% to 20%. That is versus its prior 20% target. Also the company dropping a 45% reduction in net carbon intensity citing uncertainty in the pace of change in the energy transition.

Basically saying here look there's the timeline for this energy transition is out there. And we do know that countries around the world, governments around the world are looking to reach net zero by 2050. So it takes certain steps to get there. But this comes also at the heels of BP recently receiving a shareholder letter last month or the beginning of end of January where basically the shareholder-- the activist shareholder said that they need to scale back on their renewable energy strategy.

This also comes at a time when renewable energy is by the way are having a tough time because of this high interest rate environment. But basically what this is showing you is that the energy companies are sticking to their core business of fossil fuels while they're also looking ahead at this energy transition.

And basically their argument is you still need fossil fuels in order to get to that energy transition. We have 80% of the world that depends on fossil fuels that demand is coming from these the majority of the world. And especially for the developing countries, you can't take away those energy sources. Because then the energy costs go higher guys.

JOSH LIPTON: Inés, thank you so much. Appreciate it. Have a good weekend.

INES FERRE: Thank you.