Have you ever heard of it? Shell got a 2:1 deal from our government?
We’ve just released a new research report. open saleIt turns out that: Shell earned over $200 million in revenue from selling carbon credits for reductions that never happened. While lobbying against carbon emissions limits For the fossil fuel industry. Talk about multitasking!
It all started in 2008 when Shell launched its ‘Quest’ carbon capture and storage (CCS) project. It was the first and only CCS project in the oil sands, and was touted by the Alberta government as a solution to oil sands pollution.
This project was based on: carbon credits this is 1 tonne of CO2 emissions reduced or removed from the atmosphere. It is then sold or traded. To advance corporate or political sustainability goals, achieve climate goals, or demonstrate climate leadership. Unfortunately in this case they It’s just another false pretense to delay real climate action..
© Jiri Lezak / Greenpeace. A 2009 aerial view of a seismic line and tar sands mine in the boreal forest north of Fort McMurray, Alberta.
Our investigation revealed that Shell lobbied for and accepted a ‘2:1’ deal during negotiations with the Alberta government in 2008 to subsidize this CCS project.
“Alberta Government Shell was allowed to claim 2 tonnes of emissions rights for every tonne buried underground. This means they are in fact Each ton is sold twice. This means that half of the total credits sold are for reductions that never occurred.“explained Keith Stewart, senior climate and energy strategist at Greenpeace Canada.
By the end of 2022, Quest CCS had diverted 5.7 million tonnes of emissions, but the deal allowed the Alberta government to cash out Shell twice, effectively paying for 11.4 million tonnes of carbon capture. While increasing fossil fuel production.
Importantly, Shell has received $777 million in direct subsidies from state and federal governments since 2008. Canadian taxpayers subsidized 93% of the cost of this CCS project. The deal ended in 2022, but the damage was significant. We have all been scammed.
“The federal government is currently drafting regulations to limit greenhouse gas (GHG) emissions from the oil and gas sector. We have disclosed the costs of the Shell ‘2-for-1’ transaction to ensure there are no similar loopholes in the new regulations, and we hope supporters will support the proposed GHG cap.“Stuart emphasizes.
We are calling on oil companies and governments to take responsibility, phase out fossil fuel production, and instead support communities to transition to renewable energy. For our youth, future generations, and the earth We must build an economy based on renewable energy that is efficient, fair and clean.
