Shell and ExxonMobil looking for billions in subsidies for carbon capture and storage (CCS)

MEDIA UPDATE

“As long as these fossil companies are not making large-scale investments in renewable energy, CCS is no more than an excuse for business as usual.”

Today the Financieele Dagblad revealed that Shell and ExxonMobil are looking for billions of euros in subsidies for CO2 capture and storage (CCS) in the North Sea (Porthos project). According to the Dutch financial newspaper, the subsidy could be as much as €1.5 billion.

Follow This responds:

¨CO2 capture and storage (CCS) should be the last stone of climate policy, not the cornerstone. Let’s first see Shell and ExxonMobil investing billions in the energy transition from fossil to renewable. Otherwise CCS is no more than an excuse for business as usual.

“As long as these companies are not showing that they are doing everything possible to replace fossil energy with renewable energy, they should not be eligible for subsidies for CCS that they merely use as an excuse to go on with fossil energy.

“Governments that fall for this will be subsidizing fossil energy companies to continue with their outdated business model.”

CCS is necessary to achieve the Paris goal, but then with the correct priorities

“In most of the IPCC scenarios to achieve the goal of the Paris Climate Agreement (to limit global warming to well below 2°C, and preferably 1.5°C) CCS is in fact necessary, but we must first do as much as we can to improve energy efficiency and to produce as much renewable energy as possible. Whatever fossil fuels the world still needs must be compensated with CCS and other means. And only in that order of priority.”

A difference between ExxonMobil and Shell

As is the case with Shell, ExxonMobil is barely investing anything in renewable energy, but in addition to that, they do no ambition to cut back the emissions of their products (Scope 3).

About Follow This

Follow This is a group of over 5,900 green activist shareholders. Follow This compelled Shell, BP, Equinor, and Total to set climate ambitions, thanks to votes of institutional investors for the Follow This climate targets resolutions.

After a significant minority of responsible investors voted for the Follow This climate resolutions, Shell, Equinor, and BP announced climate ambitions for all emissions, including Scope 3.

The Follow This Climate Targets Resolutions support oil and gas companies to set Paris-consistent targets for all emissions, including Scope 3 (product emissions).

Mission
Shareholders compel oil and gas companies put their brains and billions behind renewables.

 

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