Shell sold millions of carbon credits for reductions in greenhouse gas emissions that never happened, allowing the company to turn a profit on its fledgling carbon capture and storage project, according to a new report by Greenpeace Canada.
Under an agreement with the Alberta government, Shell was awarded two tonnes’ worth of emissions reduction credits for each tonne of carbon it actually captured and stored underground at its Quest plant, near Edmonton.
This took place between 2015 and 2021 through a subsidy program for carbon, capture, utilisation and storage projects (CCUS), which are championed by the oil and gas sector as a way to cut its greenhouse gas emissions.
At the time, Quest was the only operational CCUS facility in Alberta. The subsidy program ended in 2022.
Market-based solutions for the win!
/s, obviously.
Edited, this is what carbon taxes were supposed to replace, because everyone wanted something “market-based” even though regulation worked well for addressing CFCs. Personally, I’m of the opinion that if companies are cheating on cap-and-trade and whinging about carbon pricing that we should just straight-up regulate them. No bribes, no incentives, just “stop polluting or we fine you at 110% of your global revenue.”