Oil giant Shell waters down its near-term emission cuts in strategy update

British oil giant Shell on Thursday announced plans to moderate its near-term carbon emissions cuts, while maintaining its pledge to become a net-zero company by the middle of the century.

In its latest energy transition strategy update, the oil and gas major said it is now aiming to reduce its net carbon intensity on the third-party use of products it sells by 15% to 20% by 2030, compared with a previous target of 20%.

Shell said it had also dropped its goal of a 45% reduction by 2035, citing "uncertainty in the pace of change in the energy transition." The net carbon intensity targets are measured against a baseline of emissions in 2016.

"Our focus on value has led to a strategic shift in our power business towards select markets and segments," Shell CEO Wael Sawan said in a statement. "As a result, we expect lower growth in sales of power overall. We have updated our net carbon intensity target to reflect that change."

Shell said that by the end of 2023, it had achieved over 60% of its target to halve emissions from its operations by 2030, compared with 2016.

The company also said it achieved its target to reduce the net carbon intensity of the energy products sold last year, with a 6.3% reduction compared to 2016. Shell said this marked the third straight year it had hit its target.

Shell set a new target to reduce customer emissions from the use of its products by 15% to 20% by the end of the decade, compared with 2021.

Shell's update comes as European energy majors continue to tweak their plans in the transition to clean-energy technologies. Last year, British rival BP said it was targeting a 20% to 30% emissions cut by the end of the decade, compared to a previous commitment to a 35% to 40% trim.

BP, which is also