Shell Pushes Trade Groups for Stronger Climate Positions

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Shell announced it’s encouraging industry trade groups to support and advocate for climate policies in line with the Paris climate agreement. They called out American Petroleum Institute (API), the Texas Oil & Gas Association, and the U.S. Chamber of Commerce. But API was put on notice.

“Shell continues to urge API to take a more proactive and constructive approach to climate-related policy and advocacy, in line with the goal of the Paris Agreement,” Shell said.

API recently announced it supports carbon pricing, a pivot Shell has been pushing the organization to make. 

“We must be confident that our participation in industry associations is consistent with our views on climate action,” said Ben van Beurden, Shell’s chief executive. “Our memberships should strengthen and not undermine our support of the goal of the Paris Agreement and the global drive to achieve net-zero emissions.”

Shell has threatened to leave the groups, and therefore pull monetary contributions, if there’s not “more alignment” on climate policies. 

Pressure is mounting from other sources for API and other oil and gas trade groups to change their views on climate policies. Earlier this year, Total, the French oil giant, decided not to renew its API membership due to misalignment. 

BP also has the API on notice but is sticking with its membership for now as it works alongside Shell and others to shift the association’s policy positions. 

These efforts aren’t new. Shell and other European oil and gas companies have for years pressured advocacy groups around the world—including Queensland Resources Council, Cefic, and more—to more aggressively work to meet Paris Agreement targets. 

In the past, Shell and others have not hesitated to leave trade groups, like American Fuel & Petrochemical Manufacturers (AFPM), over climate change policy differences.

For now, the multinational oil and gas company will continue shelling out to API.