Compensating for unavoidable emissions with Shell Commercial Fuels

Shell Commercial Fuels offers a portfolio of carbon credits so that companies can compensate part of their unavoidable emissions by supporting verified carbon credit projects.

How does it work?

You opt-in to compensate the CO₂e emissions for your plant or fleet with every purchase of fuels from Shell

Shell tracks your plant or fleet’s overall fuel consumption and calculates the associated CO₂e emissions

Shell offsets these emissions against our global portfolio of nature-based projects. Shell purchases carbon credits equivalent to the amount of your plant or fleet’s emissions

Shell issues an annual Shell carbon reduction certificate confirming that the fuel has been compensated.

Shell automatically calculates your well-to-wheel carbon emissions and offsets these through Shell’s global portfolio of nature-based solutions projects.

Benefits to your Business

There are several advantages to offsetting the CO₂e emissions with Shell:

Annually, you will receive a carbon reduction certificate
Your company will demonstrate corporate leadership and strengthen its position
You can meet the increasing demands of internal and external stakeholders
Your business can have a positive impact on communities around the world by offsetting through verified projects

Carbon Offsetting faqs

What are Nature-Based Solutions?

‘Nature-based solutions’ – also referred to as natural climate solutions – comprise all activities related to the protection or re-development of natural ecosystems such as forests, grasslands, and wetland systems to lower concentrations of greenhouse gases in the atmosphere. This can include avoiding or minimising greenhouse gas emissions, and helping to sequester carbon into so-called ‘carbon sinks’. Each of these activities results in the biological capture and storage of carbon – typically through the process of photosynthesis. Such activities can lead to the marketing, trading and sale of carbon offset credits. They also help, for instance, to reduce soil erosion, protect animal habitats, and create products such as timber and biofuels.

What are carbon credits?

A carbon credit represents the avoidance or removal of 1 tonne of carbon dioxide. These credits are traded among governments and businesses. In order to ensure the quality and integrity of carbon credits, there is a robust programme of third-party standards, verification processes and registries.

What is offset?

Shell’s compensation service is for the so-called "well-to-wheel" emissions, i.e. CO₂e emissions from the extraction of crude oil to the combustion of the fuel in the engines of your fleet or plant. The use of the fuel is responsible for approximately 80% of the "well-to-wheel" CO₂e emissions of the fuel (European Commission, JRC). The extraction of crude oil, its refining and its distribution are responsible for the remaining 20% of the emissions.

Why should I buy carbon credits from Shell?

Shell selects carbon credits that have been approved by standards such as the Verified Carbon Standard, the Gold Standard and the Climate Action Reserve. These are examples of well-known standards in the market. Shell has a deep knowledge of energy markets and is one of the leading Environmental Products Trading desks globally. Moreover, Shell’s scale means it can offer customers a large number of options to meet their needs with reduced credit risk when compared to purchasing directly from a project

¹ _{CO₂ compensation does not imply that there is no environmental impact from the production and use of the product as associated emissions remain in the atmosphere. CO₂ compensation is not a substitute for switching to lower emission energy solutions or reducing the use of fossil fuels. Shell businesses focus first on emissions that can be avoided or reduced and only then, compensate the remaining emissions. “Carbon neutral”, “carbon offset” or “carbon compensation” indicates that Shell will engage in a transaction where an amount of CO₂ equivalent to the value of the remaining CO₂e emissions associated with the raw material extraction, transport, production, distribution and usage of the fuel are compensated through the purchase and retirement of carbon credits generated from CO₂ compensation projects. Although these carbon credits have been generated in accordance with international carbon standards, the compensation may not be exact. CO₂e (CO₂ equivalent) refers to CO₂, CH₄, N₂O.}