(MENAFN) Recent revelations have brought to light a concerning practice by Shell, whereby the company sold significant quantities of carbon credits associated with carbon dioxide removal that never occurred, casting doubts on the effectiveness of mechanisms crucial for reducing greenhouse gas emissions. Alberta's provincial government, as part of a subsidy initiative aimed at bolstering the oil sands industry, permitted Shell to register and market carbon credits purportedly linked to emissions avoided by the Quest carbon capture facility from 2015 to 2021, according to provincial records. The scheme allowed Shell to register credits double the amount of emissions actually mitigated by the facility during the specified period, with the provincial authorities ultimately scaling back and discontinuing the program in 2022.
This arrangement enabled Shell to register approximately 5.7 million carbon credits, despite the fact that these credits did not correspond to actual reductions in carbon dioxide equivalents. These credits were subsequently sold to major players in the oil sands sector, including Chevron, Canadian Natural Resources, ConocoPhelps, Imperial Oil, and Suncor Energy, as well as some of Shell's own subsidiaries. Typically, carbon credits are measured in tons of carbon dioxide, but in this case, they were tied to emissions reductions that failed to materialize.
The sale of these "fake credits" has drawn sharp criticism from environmental advocates such as Keith Stewart, a senior energy strategist at Greenpeace Canada. Stewart denounced the practice, asserting that selling emissions credits for reductions that never materialized ultimately exacerbates the global climate crisis. This revelation underscores the urgent need for robust oversight and accountability measures within carbon offset programs to ensure their integrity and efficacy in combating climate change.
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