Shell Sold Millions of 'Phantom' Carbon Credits

Shell sold millions of carbon credits tied to CO2 removal that never took place [non-paywalled link] to Canada's largest oil sands companies, raising new doubts about a technology seen as crucial to mitigating greenhouse gas emissions. FT: As part of a subsidy scheme to boost the industry, the Alberta provincial government allowed Shell to register and sell carbon credits equivalent to twice the volume of emissions avoided by its Quest carbon capture facility between 2015 and 2021, the province's registry shows. The subsidy was reduced and then ended in 2022. As a result of the scheme, Shell was able to register 5.7mn credits that had no equivalent CO2 reductions, selling these to top oil sands producers and some of its own subsidiaries. Credits are typically equivalent to one tonne of CO2. Some of the largest buyers of the credits were Chevron, Canadian Natural Resources, ConocoPhillips, Imperial Oil and Suncor Energy. Keith Stewart, a senior energy strategist with Greenpeace Canada, criticised these "phantom credits." Stewart added: "Selling emissions credits for reductions that never happened ... literally makes climate change worse." Shell said carbon capture played "an important role in helping to decarbonise industry and sectors where emissions cannot be avoided" and that realising its potential "requires creating market incentives now." Alberta's environment ministry said the crediting support scheme had not resulted in "additional emissions" by industrial polluters.

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