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Trisakti University
Shell Energy Transition to 2070
Abstract
Governments took a great stride forward in 2015, when they came together in Paris to reach a landmark
agreement to tackle climate change. Shell welcomes and supports the Paris Agreement and the ambition to
limit the global rise in temperatures to well below two degrees Celsius (2°C) above pre-industrial levels.
It is an ambition that will depend on unprecedented collaboration between governments, companies and
society, and crucially, realism about the challenges ahead. It requires a transformation in the way energy is
produced, distributed and used. The solutions will vary by economic sector. Some, like clothes and food
manufacturing, require low temperature processes and mechanical activities, which electricity is well suited to
deliver. These can therefore be powered by low and zero carbon sources of power, including renewable energy.
To suffer from this prediction, we have to build up infrastructure to use new energies that low-carbon.
This has identified the reduction in the Net Carbon Footprint of the energy system needed to achieve a
reasonable chance of limiting global warming to well below two degrees Celsius (2°C).
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Paper Alternative Energy
Trisakti University
and governments. Societies want energy that is sources like wind and solar, and low-emission fuels
reliable, widely available and affordable. As a such as biofuels.
result, hydrocarbons account for more than 80% of
the energy mix.
(2°C) above pre-industrial levels. The energy mix varies between regions and
countries because of their different starting points,
levels of development, types of economy, and
energy resources available locally. In north-west
Europe, energy demand remains relatively constant
and renewables overtake hydrocarbons as the
dominant primary energy source.
In countries such as China, India and across
Figure 2 Societal Challenge [2]
Africa, all forms of primary energy – including
It is an ambition that will depend on
both hydrocarbons and renewable sources – grow
unprecedented collaboration between
strongly from today’s base to support
governments, companies and society, and crucially,
industrialisation, build modern economies and
realism about the challenges ahead. It requires a
raise living standards.
transformation in the way energy is produced,
The transition to new sources of energy
distributed and used.
around the world requires major changes to
This is the reality of the change needed
industrial, commercial and residential
across the world to meet the aims of Paris. It is a
infrastructure. This takes time and substantial
transition that will span decades.
investment, so the pace of change will build in the
2020s and accelerate thereafter.
2. ENERGY DEMAND
Energy demand grows during the century as
3. TRANSITION SCENARIO
the global population increases to more than 10
The transition to lower-carbon energy
billion and the world becomes more prosperous.
presents opportunities, as well as risks. It requires
They all feature continued long-term demand for
major changes to industrial, commercial and
oil and gas, alongside rapid growth in renewable
residential infrastructure. This takes time and
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Paper Alternative Energy
Trisakti University
substantial investment. We are reshaping our with the production, processing and consumption
company to provide the energy, and related of the energy products Shell sells. This includes
products and services, that consumers need as direct emissions from Shell operations, as well as
society works to meet the goals of the Paris those caused by third parties who supply energy for
Agreement. our production. It includes the hydrocarbons we
4. REDUCING NET CARBON procure from other producers, refiners and
FOOTPRINT manufacturers that we incorporate into our supply
Shell plan to reduce the Net Carbon chain, and the emissions from the consumption of
Footprint of the energy products in step with these products by our customers.
society’s progress. Already applied own unique The calculation includes biofuels and
Net Carbon Footprint methodology, using Sky electricity products, as well as emissions that we
scenario analysis and the IEA’s Energy offset by using carbon capture and storage (CCS),
Technology Perspectives 2017 as inputs. or natural sinks such as forests and wetlands. It
Based on this analysis, believe that society does not include no energy products such as
will have to achieve net zero additional CO2 chemicals and lubricants. This is because they are
equivalent emissions from energy by 2070. That not intended to be burned, which releases CO2.
will likely require the world to reduce the amount
of CO2 produced for each unit of energy consumed
from today’s level of around 74 grams to around 43
grams of CO2 per mega joule by 2050.
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Paper Alternative Energy
Trisakti University
this reason, the relative reductions required to This has identified the reduction in the Net
achieve the aims of the Paris Agreement under the Carbon Footprint of the energy system needed to
NCF methodology will differ from, but are achieve a reasonable chance of limiting global
consistent with, IEA projections. warming to well below two degrees Celsius (2°C).
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