AT the United Nations Climate Change Conference held in Dubai, United Arab Emirates, in December 2023, significant progress was made toward transitioning away from fossil fuels, marking a historic step in global climate action. Key outcomes included an agreement to reduce global emissions by 43 percent by 2030 and achieve net-zero emissions by 2050. This involves a commitment to phase down unabated coal power and inefficient fossil fuel subsidies while also tripling renewable energy capacity and doubling energy efficiency improvements by 2030.
The Philippines' first Nationally Determined Contribution outlines an ambitious plan to transition toward renewable energy and reduce greenhouse gas (GHG) emissions. The country has committed to cutting its GHG emissions by 75 percent by 2030, with a significant focus on expanding the share of renewable energy (RE) in its power mix to 55.8 percent by 2040. To achieve these goals, the strategy includes increasing renewable energy capacity, phasing out coal plants, mobilizing funding that will finance the shift toward renewable energy, and enhancing policy and regulatory framework to facilitate the energy transition, among others.
Ateneo de Manila University has partnered with Shell Energy Philippines Inc. (SEPH) and SolX Technologies to make its Loyola Heights campus 100 percent powered by RE. This initiative is part of the university's Laudato Si' Plan (2022-2029) and its commitment to achieving carbon neutrality by 2030. The mix includes solar, hydro, biomass and geothermal sources. Currently, solar panels have already been installed on 13 buildings, meeting 20 percent of the university's electricity needs. SEPH will supply the remaining 80 percent, positioning Ateneo as a pioneering institution in the integration of RE in the Philippine educational sector.
According to its website, SEPH, formerly Mantra Energy Inc., “is a 100 percent Shell-owned Philippines power marketing and trading business.” It is part of the Shell Companies in the Philippines, which also includes Shell Pilipinas Corp. and Business Operations (SBO Manila).
Shell Pilipinas Corp. (SPC), which is 55 percent owned by Shell plc, imports and markets various petroleum products such as gasoline, diesel, jet fuel, fuel oil, lubricants, bitumen, and more. The company's Annual and Sustainability Report for 2022 states that it adheres to the voluntary standards of the Global Reporting Initiative. However, the report lacks an external assurance statement, meaning that no third party verified the data presented in the report.
Did Shell plc, the parent company of SPC, have knowledge of climate change and attempt to mislead the public? Since the 1980s, Shell possessed substantial knowledge about the risks of climate change and took actions that contributed to public misinformation on the issue. Documents from the 1980s and 1990s demonstrate that Shell's internal scientists were aware of the potentially severe impacts of fossil fuel emissions on the climate, accurately predicting temperature rises and associated environmental damage.
Misinformation dissemination
In 1991, Shell produced an educational film, “Climate of Concern,” that emphasized the dangers of global warming and the urgent need for action. Despite this acknowledgment, Shell continued to invest heavily in fossil fuels, including environmentally harmful tar-sands projects and Arctic exploration. Additionally, the company joined and supported industry groups that opposed climate policies and disseminated misinformation about climate science.
In the case of Shell vs. Milieudefensie (Friends of the Earth Netherlands), which was decided in May 2021, Shell was ordered by the District Court in The Hague to reduce its global net carbon emissions by 45 percent by 2030 compared to 2019 levels. While Shell committed to reducing the net carbon intensity of its energy products by 20 percent by 2030, 45 percent by 2035 and achieving net-zero emissions by 2050 in its energy transition strategy released in 2021, 78 percent of its shareholders voted last May 21st to weaken its climate targets by cutting emissions at a slower pace than previously planned.
Furthermore, although Shell Pilipinas' target aligns with Shell's goal to become a net-zero emissions energy business by 2050, Shell is one of the 78 fossil fuel private and state-owned companies identified by the Carbon Majors Database that collectively contribute over 70 percent of global carbon dioxide emissions. A closer analysis of the report shows that Shell ranks 10th among these 78 companies.
For decades, Shell's activities have impeded meaningful climate action, contradicting the company's public statements acknowledging and addressing climate change. Shell's inconsistent messaging and lobbying efforts have influenced public perception and policy, often undermining the urgency and scientific consensus surrounding climate change.
The author (ludwig.federigan@gmail.com) is the founding executive director of the Young Environmental Forum and a director of Climate Tracker Asia Inc. He completed a climate change and development course at the University of East Anglia (UK) and an executive program on sustainability leadership at Yale University (USA). You can email him at ludwig.federigan@gmail.com.
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