Shell, one of the world’s largest oil and gas companies, has announced plans to invest $450 million into carbon offsetting as fears grow that carbon credits may become worthless.
The company has stated that the funds will be used to finance projects that reduce carbon emissions and store carbon dioxide. These projects include forest conservation, soil carbon storage and energy efficiency.
The move is part of a wider effort by Shell to reduce its own net carbon emissions to zero by 2050, as well as to reduce the impact of emissions from its customers.
The announcement follows a warning from the UN’s climate chief, Patricia Espinosa, that the current system of carbon credits may become worthless if governments do not take action to reduce emissions.
Shell’s decision to invest in carbon offsetting has been welcomed by environmental groups, who have praised the company for taking a lead in the fight against climate change.
However, some critics have argued that the move is an attempt to distract from the company’s continued reliance on fossil fuels and that the money would be better spent on investing in renewable energy.
Only time will tell if Shell’s investment in carbon offsetting will prove worthwhile, but it is clear that the company is taking the issue of climate change seriously.