The global chief executive of fossil fuel major Shell, Ben van Beurden, has declared a global carbon price of about US$250 a tonne and “tens of thousands” of carbon capture and storage plants would be needed for the world to keep within the two degree Celsius global warming goal.
Nature-based carbon offsets “to the tune of the Amazon” and a “massive” electrification of energy supply would also be needed he said in the News South Wales state capital Sydney.
The Australiand Financial Review (AFR) newspaper reports Mr van Beurden was speaking to media ahead of a meeting with Australia’s conservative Liberal-National Prime Minister Scott Morrison where energy and climate policy, and the troubled east coast gas market, were to be discussed.
“The things that are going to be needed to stay within that 2.0°C envelope are quite dramatic but doable,” said Mr van Beurden.
AFR reports he added that Australia was not alone in falling behind on what was needed, given current commitments put the world on track for warming of 3.0°C or 4.0°C.
The Anglo-Dutch company, among Australia’s biggest foreign investors, has been a vocal advocate for the United Nations sponsored Paris Agreement and a carbon price and has called for more ambitious targets on emissions reductions.
AFR reports Mr van Beurden’s remarks show the scale of the challenge Australia faces to meet its climate commitments given the nation’s dependence on fossil fuels and energy intensive industries.
“We have to find a way to get there,” said Mr van Beurden, who is in Australia to celebrate the start-up of Shell’s massive Prelude floating LNG plant off the north-west coast.
Mr van Beurden said the pointers and incentives were all there for Australia’s energy transition, given the upcoming closure of coal power plants and the cost competitiveness of renewable energy, but he acknowledged the difficulties faced by government on policy.
“I’m sure the way the government will have to implement this is going to be a delicate process because it’s a very noisy space,” he said, adding that Shell could help in advocacy, investment and policy support.
Mr van Beurden singled out the issue around accounting for carbon emissions from the production of LNG as one where he saw strong overlapping interests between Australia and Shell and one where they could work together.
National accounting for emissions is problematic for LNG exporters, which have been on the back foot arguing that the contribution of the fuel towards emissions reduction in Asia by replacing coal should be taken into account.
Mr van Beurden pointed to Article Six in the Paris Agreement that offers parties the opportunity to cooperate with each other when implementing emissions reductions obligations.
That article, which has not been brought into operation, would allow the climate benefits of gas use to be considered together with emissions in the source country.
He said it would be “massively in the interests of Australia to have a functioning Article Six in the Paris Agreement”.
“Well it also happens to be massively in our interests, so maybe here we can again work together.”
He said spending to building electricity generation was necessary for Shell’s ambitions to form an integrated electricity supply business in Australia, one of six markets Shell has identified as offering that opportunity.
So far Shell has taken only small steps, developing a 120 megawatt solar farm in Queensland, building up power and gas trading and acquiring the Sonnen household battery business.
EcoNews is an independent publication that relies on contributions from its readers.
WE’RE BUILDING A PLATFORM WITH A CLEAR FOCUS ON THE ENVIRONMENT, CULTURAL AND SOCIAL GOOD. CONTRIBUTE AND TOGETHER WE CAN MAKE AN IMPACT.
