SHELL LIKES CAP-AND-TRADE – WITH ALL NATIONS IN

Royal Dutch Shell is doing damage control.

In drafting plans for its post-2012 period of climate change mitigation, the EU has proposed making oil refineries (as well as airlines and other industrial sectors) pay for 20% of emissions by 2013 and 100% by 2020.

Shell France’s Christian Balmes told the EU parliament such emissions costs would make Shell’s ability to do business in Europe difficult. A subsequent Times of London story had the company pulling out of Europe entirely.

EuroShell doesn’t need that kind of negative publicity.

Malcolm Brinded, head of exploration and production, Royal Dutch Shell: "The most pressing issue is the rapid expansion of coal-power without the use of available technology to capture and store CO2…We need to look for ways to increase the tradability of CO2 globally…"

Linking emissions trading and CCS technology is an interesting greenwashing move. Not only does it demonstrate Royal Dutch Shell’s global climate change conscientiousness but it changes the subject.

Many who study global energy needs and global climate change cannot turn away from coal and carbon-capture-and-sequestration (CCS) technology.

The tripling of global energy demand over the next quarter century boggles the mind. There seems to be no way to stop developing nations like China and India from turning to coal.

At the same time, greenhouse gas (GhG) emissions are gathering precipitously in the atmosphere and if humankind’s spewing does not soon stop, calls for mitigation will be replaced by calls for the much more painful and expensive process of adaptation.

Hence, CCS. Capture the emissions and bury them. In Europe, grim reality keeps the idea near the top of the list of investments. In more idealistic quarters, “clean” coal is a black joke, an oxymoron. One commentator, not burdened with the heavy responsibilities of European leaders, likened CCS to what a dog does with a bone.

Necessary evil or misguided impulse? Well, Royal Dutch Shell likes it.

Royal Dutch Shell also likes cap-and-trade — but only, it says, if the big developing nations like India and China sign on.

That’s an interesting point because actually China and India ARE signed on. Back in 1997 when the Kyoto Protocols were developed and the global cap-and-trade system was designed, developing nations were given the opportunity to sign on without – because of their limited economic capacity – any obligation to cut emissions. They did.

At this point, the only nation not signed on to the Kyoto Protocols is the U.S.

The implication? As the next phases of the world’s fight against global climate change are negotiated, the ONLY nation not obligated to abide by the decisions – and the main nation pushing AGAINST mitigation commitments – is the U.S.

Mr. Brinsted needs to focus on the problem (the U.S.), not the solution (China and India).

Royal Dutch Shell's competing scenarios for the world's energy future shows a better outcome with a world cap-and-trade system. (click to enlarge)

Shell wants developing nations in carbon market
April 10, 2008 (Bloomberg News via Houston Chronicle)

WHO
Royal Dutch Shell (Malcolm Brinded, head of exploration and production)

Other outcomes in Shell's possible futures. (click to enlarge)

WHAT
Asserting that India and China would be willing to participate in a global cap-and-trade market with binding agreements, Brinded said Royal Dutch Shell is also for such a market.

WHEN
Brinded’s April 10 remarks called for a global cap-and-trade market with binding agreements to be organized as "quickly as possible."

click to enlarge

WHERE
Remarks made at an oil industry conference in Paris.

WHY
- Brinded contends that an Intergovernmental Panel on Climate Change (IPCC) estimate has carbon-capture-and-sequestration (CCS) technology capable of making 55% of the greenhouse gas (GhG) emissions cuts necessary to mitigate global climate change.
- Shell energy scenarios to 2050 sees alternative futures and “Blueprints,” the better outcome, follows the choice to create a worldwide cap-and-trade system.

click to enlarge

QUOTES
Malcolm Brinded, head of exploration and production, Royal Dutch Shell: "We need this as soon as possible to ensure that CO2 reduction dollars focus on the most cost-effective and implementable solutions globally…"