Shell to Shelve Plan to Shrink Its Carbon Footprint
Shell Plc’s Chief Executive Officer, Wael Sawan, has terminated the company’s ambitious carbon offsets program, a plan to develop environmental projects that counteract CO2 emissions. This program aimed to help Shell achieve its goal of becoming carbon neutral by 2050. The company had committed to spending up to $100 million annually to build a pipeline of carbon credits, but this plan has now been retired due to its unattainability.
Shell’s move away from the carbon offsets program reflects Sawan’s renewed focus on the core oil and gas business, which generates the majority of the company’s profits. The company’s previous efforts in the carbon offset sector barely made a dent, with only $95 million spent over two years on carbon projects, less than half of the initial budget. The complexity and slow progress of developing high-quality carbon offset projects have proven challenging, leading to the company’s decision to shift its strategy.
This development casts a shadow on the efficacy of carbon offsets as a climate solution for big companies. The voluntary carbon market, valued at around $2 billion, is projected to grow to $950 billion by 2037. The challenges faced by Shell underscore the difficulties of achieving both high quality and high quantity in carbon offsets. Quality standards and supply volumes often work against each other.
The implications for the supply chain are significant. Shell’s withdrawal from the carbon offsets market could impact the availability of high-quality offsets, potentially affecting other companies’ efforts to meet their carbon reduction targets. The decision highlights the complexity of carbon offset projects and the need for comprehensive strategies that encompass emissions reduction rather than relying solely on offsets. This development also underscores the broader challenges of decarbonizing industries heavily dependent on fossil fuels and the necessity of exploring alternative and more effective climate solutions.
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Walmart and Wing team up for drone delivery in Texas
Walmart is partnering with drone delivery provider Wing, a subsidiary of Google’s parent company Alphabet, to expand its drone coverage and offer drone delivery from two stores in the Dallas-Fort Worth area. The collaboration will extend Walmart’s drone coverage to an additional 60,000 homes. Walmart has already completed over 10,000 drone deliveries since piloting the program in 2020, with 36 stores in seven states participating. The partnership with Wing will enable customers to receive deliveries in under 30 minutes for household essentials and groceries using tethered drones.
This move is anticipated to enhance delivery options and convenience for Walmart’s customers. The expansion aligns with Wing’s ambitious plan to create a global drone delivery network capable of handling millions of deliveries by mid-2024. As drone delivery providers like Wing and Zipline aim to scale up and cover more customers, the broader effect on the supply chain could be an increased demand for efficient last-mile delivery solutions, pushing companies to invest in and develop drone delivery capabilities to meet growing consumer expectations for fast and convenient delivery services.
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Iran’s oil exports rise despite US sanctions
Despite U.S. sanctions, Iran’s oil production and exports surged in August, reaching their highest levels since 2018. Analysts attribute this increase to Iran’s adeptness at evading sanctions and a level of U.S. discretion in enforcing them as diplomatic relations between the two nations improve. Industry trackers estimate that Iran’s oil production reached around 3.15 million barrels per day (bpd) in August, with exports at nearly 2 million bpd, largely facilitated by exports to China.
The effect on the global supply chain could be significant. Increased Iranian oil exports could add more supply to the global market, potentially leading to a downward pressure on oil prices. This could be both advantageous for consumer nations but might also pose challenges for oil-producing countries, including those within the OPEC+ group that are already working to balance oil supply with demand.
The situation underscores the complex interplay between geopolitics, international sanctions, and the energy market, with implications for both political relations and global economic dynamics.
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