CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global

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CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
CLEAN ENERGY
SOLUTIONS

SHELL ENERGY EUROPE
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
2                                                                                                     3

    THE WORLD NEEDS MORE
    AND CLEANER ENERGY
    Global energy challenge

    The world will need much more energy
    to power homes and fuel transport for
    a growing population with rising living            To tackle climate change, energy must
    standards. But, to tackle climate change,          increasingly come from lower-carbon sources.
    energy must increasingly come from
    lower-carbon sources.

     	The world today is dynamic and fast-changing,
       and for many, energy is a defining feature

     	Lives and livelihoods, economies and
       communities depend on convenient,
       reliable and affordable energy to thrive

     	As the global population increases and
       incomes rise, demand for energy will grow

     	Meanwhile the need to address stresses
       on the environment – especially climate
       change – has never been more important

    Changes need to happen across all
    sectors of economic activity especially
    in power, transport, buildings and industry –
    four major sectors where energy is consumed,
    and that produce significant energy-related
    CO2 emissions.

    Urgency, realism, innovation and
    collaboration are key. The global energy
    transition, therefore, will span decades and
    require unprecedented collaboration between
    policy-makers, leaders from business and
    non-governmental organisations, and consumers.
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
4                                                                                                                                                          5

    GETTING TO
    NET-ZERO EMISSIONS
    The only way to go

    The Paris Agreement has sent a signal around the world:                  CHANGING WORLD: MOVING TO
    climate change is a serious issue that governments,                      A LOWER-CARBON ENERGY SYSTEM
    businesses and society are determined to address.
    The Paris Agreement set a goal of limiting the rise in
    average global warming to 1.5°Celsius, and Shell
    strongly supports it.
                                                                             2017                                                          2050
    By 2070, there is the potential for a very different energy
    system to emerge. To achieve the goal of the Paris Agreement,            Population increases by around a third
    Shell believes the world is likely to have to stop adding to the
    stock of greenhouse gases in the atmosphere by 2070. This is
    a state known as net-zero emissions.

    But by 2070, the number of people on the planet will have risen by
    around a third from today to more than 10 billion, and people’s living   7.6 BILLION                                                  9.8 BILLION
    standards will have improved. Together, these trends mean
    the world will use more and more energy. Even with a huge
    improvement in energy efficiency, the world is likely to be using
    50% more energy by 2070, compared to today.                              Energy demand increases by around a third

                                      “Shell intends to lead and
                                      thrive through this transition
                                      to a low-carbon energy
                                      future. And Shell has always
                                      said that its ambition was to          CO2 emissions need to reduce by around a half
                                      be in step with society, to be
                                      in step with our customers.”

                                      Ben van Beurden
                                      Shell CEO
                                      April 2020                             32Gt (net CO2e emissions)                       18.4Gt (net CO2e emissions)
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
6                                                                                                                                                                                                                                                                                             7

    SHELL’S ROLE IN THE TRANSITION                                                                                SHELL’S NET CARBON
    TO A LOW-CARBON WORLD                                                                                         FOOTPRINT AMBITION
    Committed to playing our part                                                                                 Thrive in the energy transition

    We agree that action is needed now on                  We have already invested billions of dollars           Shell is aiming to become a net-zero
    climate change, so we fully support the                in a range of low-carbon technologies, from            emissions energy business by 2050                                                                	In 2019, we set a target for 2021
                                                           biofuels, hydrogen and wind power, to electric                                                                                                            of 2-3% lower intensity compared
    Paris Agreement and the need for society                                                                      or sooner.
                                                           vehicle charging and smart energy storage                                                                                                                 with 2016.
    to transition to a lower-carbon future.
                                                           solutions. But addressing a challenge as big
                                                                                                                  We are working to offer customers more, lower-                                                   	In early 2020, we set a new target
                                                           as climate change requires a truly collaborative,
    We’re committed to playing our part, by                                                                       carbon products, from renewable electricity to                                                     for 2022 of 3-4% lower intensity
                                                           society-wide approach.
    addressing our own emissions and helping                                                                      hydrogen. We aim to reduce the carbon intensity                                                    compared with 2016.
    customers to reduce theirs. As the energy              We believe that smart policy from government,          of the energy products we sell by 30% by 2035
                                                                                                                                                                                                                   		We  track and publicly report on
    system evolves, so will our business, to provide       supported by inclusive action from businesses          and by 65% by 2050 compared with 2016,
                                                                                                                                                                                                                    our progress towards our targets.
    the mix of products that our customers need.           like ours and from civil society, is the best way to   keeping in pace with society. With this approach,
                                                                                                                                                                                                                    Part of the pay of our senior leaders
    We are reshaping our portfolio by growing              reach solutions and drive progress. We want to         we want to contribute to achieving a net-zero
                                                                                                                                                                                                                    and around 16,500 staff is linked to
    our Integrated Gas, Chemicals, and New                 work together to #MakeTheFuture energy system          world, where society stops adding to the amount
                                                                                                                                                                                                                    achieving them.
    Energies businesses.                                   one that enables a world of opportunities –            of greenhouse gases (GHGs) in the atmosphere.
                                                           for individuals, communities, countries and
                                                           companies – while helping to protect the planet.
                                                                                                                  *Net Carbon Footprint measured on an aggregate “well to wheel” or “well to wire” basis, from production through to consumption, on grams of CO2 equivalent per megajoule
                                                                                                                   of energy products consumed; chemicals + lubricants products are excluded. Carbon Footprint of the energy system is modelled using Shell methodology aggregating
                                                                                                                   lifecycle emissions of energy products on a fossil equivalence basis. The methodology will be further reviewed and validated in collaboration with external experts.

                                                                                                                  MEETING THE AMBITION: POTENTIAL SOLUTIONS TO ACHIEVE OUR AMBITION
                                                                                                                  BASELINE          OPERATIONAL            NATURAL
                                                                                                                                     EFFICIENCY            GAS SHIFT          RENEWABLE
                                                                                                                                                                                POWER

       DEVELOPING OUR GAS BUSINESS                 NEW FUELS                         RENEWABLE POWER
                                                                                                                                                                                                     BIOFUELS
                                                                                                                                                                                                                          ELECTRIC
                                                                                                                                                                                                                          MOBILITY

                                                                                                                                                                                                                                                 CCS               NATURAL
                                                                                                                                                                                                                                                                    SINKS

             ADVANCING CCS              R&D IN LOW-CARBON TECHNOLOGIES                SHELL VENTURES

       ADVOCATE CO2 PRICING POLICIES      SCENARIOS THOUGHT LEADERSHIP        COALITIONS AND GOV’T ADVISORY       EXISTING             FLARE              INCREASED               WIND                RAÍZEN         SHELL RECHARGE             QUEST           NATURE-BASED
                                                                                                                  EXAMPLES...        REDUCTION               LNG                 POWER               BIOFUELS           AND NEW                  CCS             SOLUTIONS
                                                                                                                                                                                                                        MOTION
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
8                                                                                                                                                            9

    NO SINGLE SOLUTION, BUT MANY                                                                                               SHELL ENERGY EUROPE,
    The three-part answer: avoid, reduce and compensate                                                                        YOUR PARTNER TO DELIVER
                                                                                                                               CLEAN ENERGY SOLUTIONS

    There is no single solution to limit the
    rise in the global average temperature                       REDUCE
    to 1.5°C. Many different solutions are                       EMISSIONS                 CO2       CO2

    urgently needed for a successful transition                  Promoting the use of natural gas
    to a low-carbon world.                                       as the cleanest burning hydrocarbon
                                                                                                                               AVOID EMISSIONS
                                                                 	We have one of the largest natural gas trading             	Renewable power
    Shell Energy Europe provides you with a range
                                                                   operations in the world. This allows us to connect buyers
    of clean energy solutions that can help you meet                                                                           	Renewable energy
                                                                   and sellers and provide reliable and flexible gas supply
                                                                                                                                certificates
    your decarbonisation goals. We tailor solutions                to our customers.
    that aim to avoid, reduce or compensate for the                                                                            	Corporate power
                                                                 	Natural gas plays an increasingly important role in         purchase agreements
    emissions of your business.
                                                                   sectors of the economy that cannot be easily electrified.
                                                                   It helps lower emissions and improves air quality when
                                                                   it replaces coal and diesel. Gas is also an ideal partner
                                                                   for renewable energy sources, providing critical support
    AVOID                                                          in matching supply and demand.
    EMISSIONS                       CO2

    Maximising the role of renewables
                                                                 	Shell has been a pioneer in LNG for more than five
                                                                   decades: from finding the fields and extracting the gas,
                                                                                                                               REDUCE EMISSIONS
    in the energy transition                                       through to liquefaction, shipping and distribution to
                                                                   customers.                                                  	Renewable gas
     	We offer the integrated end-to-end power solutions
       you need — from generation and supply to trading          	To further accelerate decarbonisation of the gas system,
       and distributed energy systems.                             we offer various renewable gas solutions including
                                                                   biomethane tailored to customer needs.
     	We develop wind and solar projects, produce power
       from existing assets and manage renewable power
       offtakes to meet our customers’ energy needs.
                                                                                                                               COMPENSATE EMISSIONS
     	We are improving and expanding our renewables
                                                                 COMPENSATE                   CO2
       offering to customers, starting from renewable
       certificates through to corporate power purchase
                                                                 EMISSIONS                                                     	Voluntary carbon credits

       agreements with additionality.                            Offering innovative solutions                                 	Reduced carbon gas
                                                                 for emissions that cannot be
     	Hydrogen is one of the most abundant elements in         avoided or reduced
       the universe – we are developing several initiatives to
       encourage the adoption of hydrogen in transport.          	Customers can purchase credits from high-quality emis-
                                                                   sion reduction projects to compensate any
                                                                   unavoidable emissions.

                                                                 	For unavoidable emissions from combustion of
                                                                   natural gas, we offer a bespoke solution to bundle
                                                                   gas supply with nature-based carbon credits.
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
10               AVOID                                                                                                                         AVOID
                                                                                                                                                                                                                                                              11
           CO2                                                                                                                        CO2
                 EMISSIONS                                                                                                                     EMISSIONS

     RENEWABLE POWER                                                                                                       RENEWABLE ENERGY
     All-in-one renewable energy solution                                                                                  CERTIFICATES
                                                                                                                           An effective tool to avoid your CO2 emissions

     Shell Energy Europe, an established power                    	We will guarantee that the volume of your           Shell Energy Europe offers you a variety of                                       	In the UK, we can maintain 100% renewable
     trader and licensed supplier with 15 years of                   actual power consumption is the same as               renewable energy certificates, which can be used                                    fuel mix disclosure by presenting renewable
     trading experience, can offer you renewable                     the retired renewable energy certificates and         to meet your renewable energy commitments.                                          energy certificates to the regulator.*
     power products.                                                 provide you with the cancellation statement           These include European Guarantees of Origin
                                                                                                                           (GoOs), UK Renewable Obligation Certificates                                      This is a flexible product, enabling you to
      	We can source and supply electricity                                                                                                                                                              source renewable energy on a pan-European
                                                                                                                           (ROCs) and UK Renewable Energy Guarantees
         at competitive prices and give you the                                                 Globally, we manage                                                                                          or global scale where alternative renewable
                                                                                                                           of Origin (REGOs).
         opportunity to fix and unfix your commodity                                            5,000+ MW of                                                                                                 power options are not available.
         price before your power is delivered.                                                  renewable power             	We can source a variety of certificates
                                                                                                assets, including hydro,      according to your needs, from the most basic
      	You will receive a bespoke renewable                                                 wind and solar.                                                                                              How it works:
                                                                                                                              ones to more advanced eco-labels with
         power contract and access your invoice
                                                                                                                              additional sustainability features.
         and power consumption on the Shell Energy                                                                                                                                                                   ENERGY            ENERGY
         Customer Portal.                                                                                                   	We can take care of all the administration
                                                                                                                                                                                                                              ENERGY
                                                                                                                               around your GoOs, ensuring that they are
     With our renewable power offering, you can                                                                                registered, tracked and retired on your behalf in
     be active in reducing emissions and showcase                                                                              the national registry and providing you with the
     your commitment to tackling climate change.                                                                               cancellation statement.                                                                                    CERTIFICATES

                                                                                                                            *
                                                                                                                                Our renewable energy is backed by UK-certified renewable certificates of
                                                                                                                                origin, which means that all of the electricity you buy from us is matched
                                                                                                                                with the equivalent amount of units from 100% renewable sources.

                                                                                                                           Energy                Our fuel       Carbon Dioxide           UK fuel mix for
                                                                                                                           Source                mix (%)        Emissions (g/KWh)        comparison (%)

                                                                                                                           Coal                       0                   –                      3.9

        Renewable energy certificates document that the energy you consume comes from                                      Natural Gas                0                   –                     39.4                            Renewable power is a
        renewable sources. These certificates provide information on the asset type, location                              Nuclear                    0                   –                     16.6                            bundled electricity supply
        and production date of renewable power and thus make it possible to track and trade                                Renewables                100                  0                     37.9                            with the renewable energy
        renewable electricity.                                                                                                                                                                                                  certificate of your choice.
                                                                                                                           Other                      0                   –                      2.2
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
12                                                                                                                                                                                                            13

     BUILDING AN INTEGRATED                                                                              We are ready to meet our customers’ evolving energy needs

     POWER BUSINESS                                                                                      The changing energy system is a commercial opportunity for Shell. We are expanding our existing
                                                                                                         electricity businesses and moving into new areas. We are becoming a key player thanks to the
                                                                                                         combination of our power trading capability, our experience dealing with governments and
                                                                                                         regulators across the world, and the strength of the Shell brand.

                                                                                                                              TRANSMISSION
        CUSTOMERS                                POWER PRODUCTS                                   TRADING                                                                   GENERATION
                                                                                                                             AND DISTRIBUTION

                                           ELECTRIC
                                          VEHICLE (EV)
                                          CHARGING

                                                              ELECTRIC
        MOBILITY                                             VEHICLE (EV)
                                                             CHARGING

                      COMMERCIAL AND
                     INDUSTRIAL ON-SITE
                        SOLUTIONS
       INDUSTRIAL

                                                                                                                                                                                              GIANT STORAGE
                                                                                                  TRADING AND                    TRANSMISSION                      GENERATION                    SYSTEMS
                                                            ELECTRICITY                           OPTIMISATION                  AND DISTRIBUTION

       COMMERCIAL

                                                                            MANAGE CUSTOMER
                                                                            ELECTRICITY USE AND
                                                                               PRODUCTION

                                           SMART
                                           HOME

                                                             CONNECTED
                                                            HOME STORAGE
       RESIDENTIAL

                                                                                   INCRE ASING E XPEC TED RE TURNS THROUGH INTEGR ATION
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
14                                                                                                                                   AVOID
                                                                                                                                                                                                                                15
                                                                                                                               CO2
                                                                                                                                     EMISSIONS

     GROWING OUR RENEWABLE                                                                                                CORPORATE POWER
     FOOTPRINT, GLOBALLY                                                                                                  PURCHASE AGREEMENTS
                                                                                                                          The emerging preference for buying renewable power

     Shell produces electricity from existing projects, develops wind and solar projects and                              Shell Energy Europe can partner with
     buys more renewable power from other producers – via power purchase agreements                                       you for the most suitable corporate
     (PPAs) – to meet your energy needs.                                                                                  power purchase agreement (PPA) for
                                                                                                                          your company.
                                                                                                                          	You can access a fast-growing global
                                                                                                                            portfolio of renewable power supplies from
     EXAMPLES OF SHELL’S RENEWABLE PORTFOLIO:
                                                                                                                            existing and under-development assets
      NORTH AMERICA                                                  EUROPE                                                 owned by us and, occasionally, third parties.

                                                                                                                          	We can handle the power operations and
                   Shell Energy North America manages 1,400                   Power purchase agreements for 1,600 MW
                                                                                                                            balancing for you.
                   MW of hydro-electric, 2,200 MW of solar                    capacity from wind, solar,biomass, co-
                   and 230 MW of windcontracted capacity.                     generation and hydro in the Netherlands,    	You can fix and manage the power price
                                                                              Italy, Spain and the UK.
                                                                                                                            along the tenure of the PPA.
                   Investment in Silicon Ranch Corp,                                                                                                                             A corporate power purchase agreement
                   a leading US developer, owner and                NETHERLANDS                                           	We can publicise the PPA together and increase
                                                                                                                                                                                 is a long-term agreement that enables a
                   operator of solar assets.                                  Part of the consortium developing the         the environmental attributes of your brand.          corporation to purchase its electricity from
                                                                              Borssele 3 and 4 wind farms                                                                        a specific renewable technology.
                                                                              (total installed capacity: 366 MW).         	Corporate PPAs enable you to contribute to
                   Since 2001, development and co-ownership
                                                                                                                            the development of new renewable assets.
                   of five onshore wind projects, from California             Solar projects for 24 MW total capacity
                   to West Virginia.                                          from solar, already active and under
                                                                              development.

                   New Jersey offshore wind joint venture
                   with EDF Renewables North America.               ITALY
                                                                                                                            How it works:
                                                                                                                                                                                       PROFILE
                                                                              Power purchase agreement for 370 MW                                                                                                CORPORATE
      SOUTHEAST ASIA AND INDIA                                                total capacity from solar and wind.

                                                                                                                                                                                       PRICE-RISK
                   Solar investment in Cleantech Solar              SPAIN                                                                                                              MANAGEMENT
                                                                                                                                                                                       AND BALANCING
                   (49%), a rapidly growing Singapore-based                   Power purchase agreements for 580 MW
                   developer with more than 120 solar                         total capacity from biogas, solar, hydro,                          ELECTRICITY
                   power projects across Southeast Asia                       wind and co-generation.                       RENEWABLE
                   and India.                                                                                                PROJECT                                                   ELECTRICITY
                                                                                                                                                                                                                CUSTOMERS
                                                                    UNITED KINGDOM                                                                                                                              AND SOCIETY

                                                                              Power purchase agreements for 260 MW
                                                                              total capacity from wind and solar.                                   RENEWABLE ENERGY CERTIFICATES, WHEN AVAILABLE
      KEY
      Updated at       Existing project       Under development
      Q3 2020
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
16                    REDUCE
                                                                                                                             CO2
                                                                                                                                        COMPENSATE
                                                                                                                                                                                                                                         17
       CO2      CO2
                      EMISSIONS                                                                                                         EMISSIONS

     RENEWABLE GAS                                                                                                         VOLUNTARY CARBON CREDITS
     Providing more and cleaner gas                                                                                        Helping you to achieve your decarbonisation targets

     Shell Energy Europe leverages our expertise                                                                           Shell works with environmental projects around the world that help reduce greenhouse
     as an established natural gas trader and                                                                              gas emissions while improving the livelihoods of local communities and preserving
     supplier to offer renewable gas products,                                                                             biodiversity and wildlife. These projects generate carbon credits that can be used
     including biomethane which can help you                                                                               to compensate for your company’s emissions.
     achieve your decarbonisation goals.

     	Depending on what is most important for your
       business, we have a biomethane strategy that                                                                           How it works: Compensating for your CO₂ emissions
       can work for you – from supplying certificates
       only, to gas with transport and corresponding
       certificates.                                               In January 2020 Shell announced an important
                                                                   step towards decarbonising heavy-duty road
     	We can offer you biomethane without the
                                                                   transport in Germany by extending its German                    WHEN CO₂ EMISSIONS                                                        ...THEY CAN BE
       need to alter your physical infrastructure or               LNG station network to 35-40 sites and supplying it
                                                                                                                                   ARE HARD TO ABATE...                                                      COMPENSATED THROUGH
                                                                                                                                                                                                             PROJECTS IN THE SHELL
       gas purchase agreements.                                    with carbon-neutral LNG fuel. The initiative includes                                                                                     GLOBAL CARBON
                                                                                                                                                                                                             CREDIT PORTFOLIO...
                                                                   sourcing biomethane produced from wet manure,
      iomethane can help you achieve
     B                                                             agricultural or municipal waste, building gas
     complete decarbonisation without the                          liquefaction capacity and the distribution of carbon
     need for additional capital investment.                       neutral LNG through Shell’s LNG station network.

                                                                                                                                   ...WHICH CAN BE RETIRED                                                   ...THAT ARE INDEPENDENTLY
                                                                                                                                   TO DEMONSTRATE AN                                                         VERIFIED TO CAPTURE
                                                                                                                                   AMOUNT OF CO₂                                                             OR REDUCE CO₂
        How biomethane works:                                                                                                      EMISSIONS HAVE BEEN                                                       EMISSIONS AND CREATE
                                                                                                                                   COMPENSATED FOR.                                                          CARBON CREDITS...

        MANURE AND SLURRY
                                            CO2                                                                                                                            1 CARBON CREDIT REPRESENTS THE AVOIDANCE
                                                                                                        POWER
                                                                                                                                                                           OR REMOVAL OF 1 TONNE OF CO₂
                                          CAPTURE      DIGESTATE
                             FEEDSTOCK

               FOOD AND
             AMENITY WASTE                                                        GAS GRID
                                                                                                         HEAT

                                                                                                                             Voluntary carbon credits are a recognised mechanism that allows individuals and companies to invest
                                                                                                                             in environmental projects that contribute to reducing the amount of CO₂ in the atmosphere. Some offer
                                           ANAEROBIC DIGESTER
                                                                                                                             broader value to society, including improved social livelihoods and biodiversity, clean water and air
              CROPS AND                    BIOGAS UPGRADED
               RESIDUES                     TO BIOMETHANE                                          TRANSPORT FUELS           quality while balancing peoples’ carbon footprints.
CLEAN ENERGY SOLUTIONS - SHELL ENERGY EUROPE - Shell Global
18              CO2
                                COMPENSATE
                                                                                                                                                                                                                                                                                                                                            19
                                EMISSIONS

        SHELL’S GLOBAL PORTFOLIO                                                                                                                                                                       PROJECT SELECTION

        OF VOLUNTARY EMISSION
                                                                                                                                                                                                       Criteria used to determine a project’s suitability
                                                                                                                                                                                                       for inclusion in the Shell Global Offset Portfolio.

        REDUCTION PROJECTS                                                                                                                                                                              	Adherence to approved carbon standards

                                                                                                                                                                                                        	Environmental impact beyond CO₂ reduction

                                                                                                                                                                                                        	Social benefit to the local community
        SHELL’S GLOBAL OFFSET PORTFOLIO                                                                                                                                                                 	Reputation and experience of project developer

                                                                                                                                                                                                        	Government support for project                                                             www.shell.com/environmentalproducts
                                                                                                                                 NEPAL
                                                                                                                                 17 CLEAN COOKING
                                                                                                                                   SOLUTIONS FOR
                                                                                             INDIA                                 DISADVANTAGED
                                                                                            16 HIMALAYAN OAK                       HOUSEHOLDS
                                                                                               RESTORATION                       18 HOUSEHOLD CLEAN
                                                                                                                                   COOKING SOLUTIONS
                                                                                                                                                                            CHINA
                                                                                                                                 19 RURAL CLEAN
                                                                                                                                                                            22 XINJIANG MAKIT
                                                                                                                                    COOKING SOLUTIONS

                                                                                                                                                                                                       ALIGNMENT WITH UN SUSTAINABLE
                                                                                                                                                                            23 QINGHAI
                                                                                                                                                                            24 XINING CITY

                                                                                                                                                                                                       DEVELOPMENT GOALS (SDGs)
                                                                                                                                                                            25 HAIDONG
                                                                                                                                                                            26 PUZHEN
                                                                                                                                                                            27 XINING CITY
                                                                                                                                                                            28 SAIHANBA MECHANICAL
     USA
                                                   TURKEY                                                                   22       32     28                                 FORESTRY FARM
                                                   7 HASANBEYLI 50 MV                            7                                 35   24
     1 GREENTREES                    1               WIND POWER PLANT                                                                 23 25 30
                                                                                                                                                                            29 JIANGXI
       REFORESTATION PROJECT
                                                                                                                              17 18           29 34                         30 QIANXINAN
                                                                                                                           16      19 26 27 33
     GUATEMALA
                                                                                                                               15            31
     2 CONSERVATION                  2           GHANA                                                                                                                      CHINA
       COAST                                                                                                                14
                                     3           8 REFORESTATION OF
                                                                               8                                                             20                             31 FUSUI BIOMASS
                                                   DEGRADED FOREST                                                                                                          32 JINGYUAN COUNTY SOLAR
                                                   RESERVES
     NICARAGUA                                                                                   9 13                                                                       33 THREE GORGES SOLAR
     3 AMAYO WIND POWER                                                                     10    12                                              21                        34 GANSU GANZHOU
       PROJECT, PHASES I & II                5                                                                  INDIA
                                                                                                                                                                               DISTRICT SOLAR
                                         4                                                                      14 TIST PROGRAM
                                             6              UGANDA                               11                                                                         35 SHANDAN DONGLE
                                                                                                                                                                               BEITAN SOLAR PROJECT
                                                            9 TIST PROGRAM
                                                                                                                INDIA
            PERU                                                                                                15 BREATHING SPACE
            4 CORDILLERA AZUL                                                                                      IMPROVED
            5 NII KANITI:                                                                                          COOKING STOVES
               COMMUNITY FOREST                              DR CONGO                                                                                                       INDONESIA
               MANAGEMENT WITH                                                                                                                                              21 KATINGAN MENTAYA
                                                             10 MAI NDOMBE REDD+
               INDIGENOUS                                                                                     KENYA
               COMMUNITIES                                                                                    13 KASIGAU
            6 TAMBOPATA-BAHUAJA                                                                                 CORRIDOR REDD+
              BIODIVERSITY RESERVE
                                                                                                                                            CAMBODIA
                                                                      MALAWI                          KENYA
                                                                                                                                            20 SOUTHERN
                                                                      11 IMPROVED KITCHEN             12 TIST PROGRAM                         CARDAMOM REDD+

                CONSERVATION                      REFORESTATION                             AFFORESTATION                                RENEWABLE ENERGY                HOUSEHOLD DEVICES

        PROJECT TYPES                                                                                                                                                                                    Saihanba Mechanical Forestry Farm Afforestation and Sequestration Project, China, Asia.

            FORESTS                                      WETLANDS                                             RENEWABLES                                       HOUSEHOLD                                 CLIMATE                                     NATURE                                    PEOPLE                    ECONOMY
                                                                                                                                                               DEVICES

                                                                                                                                                                                                                                                                                                                          €

                 Reforestation                           	Peat restoration                                     Wind                                             Cook stoves                                Climate mitigation                        	Biodiversity                               Job creation          Food security
               	Avoided forest conversion                 and protection                                                                                      	Clean water provision                      Climate adaption                            Clean air and water                        Medicine and health   Energy security
               	Natural forest management                                                                                                                       and sanitation                                                                         Wildlife protection                                              Water security
                 Avoided woodfuel
                 Fire management

        Qinghai Afforestation Project, China.                                                                                                                                                          All information taken from project developers’ materials, correct as of October 2020.
20      CO2
                  COMPENSATE
                                                                                                                                                                                                                                                                                                            21
                  EMISSIONS

     PROJECT PORTFOLIO HIGHLIGHTS
     Shell works with a carefully selected group of environmental project developers whose projects generate                                                                                                        To find out more about our projects:
     voluntary carbon offsets. Shell is also becoming a project developer partnering with key players across the world.                                                                                             www.shell.com/emissionsreductionprojects

        CORDILLERA AZUL NATIONAL PARK                                                              2.5 MILLION                                             QINGHAI AFFORESTATION PROJECT                                                           767,000 CARBON
        REDD+ PROJECT                                                                              CARBON CREDITS                                                                                                                                  CREDITS GENERATED
                                                                                                                                                           CHINA, ASIA
                                                                                                   GENERATED ON                                                                                                                                    ON AVERAGE
        PERU, SOUTH AMERICA                                                                                                                                DEVELOPED BY SHELL AND CLIMATE BRIDGE                                                   EACH YEAR
                                                                                                   AVERAGE EACH YEAR
        DEVELOPED BY CENTRO DE CONSERVACIÓN, INVESTIGACIÓN Y
        MANEJO DE ÁREAS PROTEGIDAS (CIMA)

        The Cordillera Azul National Park is located in Peru’s high forest between the Andes and the Amazon Basin.                                         The Qinghai Afforestation project is one of three projects aggregated under the same name which are
        The project supports a rich ecosystem of indigenous biodiversity, high-carbon stock forests and a multicultural                                    located on the Tibetan Plateau in northwest China. Qinghai suffers from desertification – the transformation
        population of more than 250,000 people living in communities around the park boundaries.                                                           of arable, hospitable land into a desert. Key causes include deforestation, overgrazing and overuse of water.

        The project protects against illegal logging and the encroachment by farmers. The project restores degraded                                        Tree planting began in 2014. Shell’s involvement officially began in December 2018 when Shell began
        lands with agroforestry systems (cacao and coffee) which provides income for local communities. The project                                        working with the project to help it become a certified carbon credit project. The project was verified by
        also protects the unique biodiversity of the area which is home to around 6,000 plant species and more than                                        VERRA for the Verified Carbon Standard and CCB (Climate, Community and Biodiversity) Standards and
        180 species of fish.                                                                                                                               the first issuance of credits was completed in March 2020.

        IMPACT TARGETS FOR 2021                                    PROJECT COMMITMENT TO                                                                   PROJECT HIGHLIGHTS                                       Qinghai is the fourth largest province in China by land
                                                                   UN SUSTAINABLE DEVELOPMENT                                                                                                                       area. Most of the population work in agriculture, primarily
                                                                   GOALS (SDGs)                                                                                                                                     irrigation farming and cattle and sheep herding.
        2.5 million carbon credits generated on                    Providing additional benefits                                                           767,000 carbon credits generated each year
                                                                                                                                                                                                                    Consequently, agriculture is also the primary form of land
        average each year
                                                                   THIS PROJECT MEETS THE FOLLOWING SDGs:                                                  The project crediting period started in 2014             use. Desertification has degraded the quality of land, soil
        The project crediting period started in 2008                                                                                                                                                                and water, and has had negative effectives on the quality
                                                                                                                                                           764,900 hectares will be managed significantly           of life and social-economic development for local residents.
        1.6 million hectares of threatened forest protected                                                                                                better and will experience improved biodiversity
                                                                                                                                                           conservation
        28 high conservation value species protected
                                                                                                                                                           13,862 hectares of forest will be grown as a result of
        716 jobs supported, 30% of which are held by women                                                                                                 the project

        25 sustainable enterprises created or supported                                                                                                    Protection of 2 Critically Endangered species

        Helped 6 communities to improve their schools,                                                                                                     More than 10,000 jobs created to plant trees and
        benefiting 5,000 people                                                                                                                            maintain the forests

                                                                   All information taken from project developers’ materials, correct as of October 2020.                                                            All information taken from project developers’ materials, correct as of October 2020.
22        CO2
                        COMPENSATE
                                                                                                                                                                                        23
                        EMISSIONS

     REDUCED CARBON GAS                                                                                             BENEFITS FOR YOUR BUSINESS
     A step further in your decarbonisation journey                                                                 Shell Energy Europe, your trusted partner to deliver clean energy
                                                                                                                    solutions for you

     To help you offset the unavoidable emissions that
     are produced by natural gas combustion at your site,
     we can tailor a solution that is carbon neutral.
                                                                                                                     SHOWCASE
      	Your natural gas supply is bundled with independently                                                        CLIMATE LEADERSHIP
        verified carbon credits to compensate greenhouse gas                                                         Climate leaders are those who are pushing the
        emissions from gas combustion.                                                                               limit for what companies or organisations can do
                                                                                                                     to combat climate change.
      	We use emission factors published in the national inventory
         reports to calculate your emissions from combustion of
         natural gas.

      	We guarantee that the consumed volume of natural gas
          matches the volume of credits and provide you with a CO₂                                                   APPEAL TO YOUR
          compensation certificate.                                                                                  CUSTOMERS AND EMPLOYEES
                                                                             We supply natural gas with
      	You will be able to use all available marketing materials                                                Differentiate from less-responsible brands, create new
                                                                             high-quality, voluntary carbon
          related to our global portfolio of nature-based projects to                                                sustainable products, inspire your workforce to engage
                                                                             credits from nature-based
          add value to your brand.                                                                                   with carbon reduction activities in-house.
                                                                             projects around the world.

          Illustrative example:                                                                                      MEET YOUR GREENHOUSE
          For every 100 GWh of energy produced by burning natural gas, 20,400mt CO₂e is emitted.*
                                                                                                                     GAS EMISSIONS COMMITMENTS
          These unavoidable emissions can be compensated through the retirement of 20,400 nature-based               Whatever your decarbonisation targets are, we can
          carbon credits. A certificate documenting the removal or avoidance of the CO₂ emissions will be issued.    provide you with tailor-made clean energy solutions that
                                                                                                                     help you avoid, reduce and/or compensate your emissions.

                20,400mt
                  CO2e
                                                                                                Certificate
                                                                                                                     CREATE LONG-TERM
                                                                                                                     SUSTAINABILITY VALUE
                                                                                                                     FOR YOUR BUSINESS
                                                                                                                     Investing in clean energy solutions, you will
             100 GWh
                                                                                                                     help to shape a more sustainable energy future.

     *Conversion rates may vary by country.
CLEAN ENERGY SOLUTIONS
www.shell.com/see/cleanenergysolutions

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