Why Shell Energy?
Shell Energy’s Environmental Solutions are characterized by five key elements of service:
Our trading professionals bring nearly a decade of experience in North American emissions markets. In addition, we are able to leverage Shell’s experience in trading international carbon markets.
We feature a dedicated marketing and trading team for environmental products. Shell Energy professionals are regular speakers at industry conferences and customer events, and are actively involved in policy discussions. Our goal is to shape the design of new environmental markets to ensure they are liquid, deep and transparent, which helps bring price certainty and lower transaction costs.
Shell has set the pace in environmental products transactions:
- First to trade a carbon product usable under a US mandatory cap-and-trade program
- First to trade Regional Greenhouse Gas Initiative (RGGI) allowance future contract on the Chicago Climate Futures Exchange
- First to execute a transaction on European Union (EU) allowances
- First to take delivery of Certified Emission Reductions (CERs) under the Clean Development Mechanism program
Our broad portfolio positions us to trade in both compliance and voluntary markets across North America. Our markets and services include:
- Renewable Energy - Structured offtake agreements with renewable power developers; Renewable Energy Credits (RECs) for compliance with state Renewable Portfolio Standards; RECs for the voluntary market
- Carbon Products - Allowances for regional compliance markets such as RGGI and Alberta and credits for voluntary emissions targets
- Other Emissions Markets - Regional NOx markets and Federal SO2 Acid Rain program
Superior Credit Rating
- Shell Energy’s environmental products are backed by a top-tier credit rating.
Compliance Voluntary Environmental Commitments
Shell Energy is active in all of the major environmental compliance markets in North America, and in many cases has been a market leader in their creation. For example, in 2008 we were the first company to trade Regional Greenhouse Gas Initiative futures contracts on the Chicago Climate Futures Exchange. We were also the first company to transact a futures contract on US federal compliance carbon allowances.
Shell Energy provides a range of products to meet your environmental compliance needs in the US markets. There are a number of current or future compliance programs that may be applicable to you:
- State Renewable Portfolio Standards
- Regional Greenhouse Gas Initiative (RGGI)
- Western Climate Initiative (WCI)
- Alberta Specified Gas Emitters Regulation
- US Federal (SO2) Acid Rain Program
- NOx State Implementation Plan (SIP) Call Budget Trading Program
- Houston-Galveston-Brazoria NOx Program
- RECLAIM (Regional Clean Air Incentives Market) NOx Program
Many organizations have adopted voluntary environmental commitments, ranging from reducing their emissions, managing their consumption of water, supporting renewable power, on-site recycling efforts etc. The environmental products offered by Shell Energy can help with achieving many of these objectives. When pursuing voluntary commitments, Shell Energy can provide carbon offsets (VERs) and RECs to help you achieve your voluntary goals.
Market need: For organizations that have committed to reducing their direct emissions of greenhouse gases, or the emissions associated with their products, there comes a point where it is too expensive to do so internally. Carbon offsets represent project-based reductions of greenhouse gas (GHG) emissions that can be less expensive to achieve than reducing your direct emissions. These reductions can be used to offset an organization’s own emissions.
Shell Energy Environmental Solutions: Shell Energy markets high-quality carbon offsets, otherwise known as Verified Emission Reductions (VERs). One VER represents the reduction of one metric ton of greenhouse gas (GHG) emissions. A limited number of verification standards for carbon offsets have been established by organizations to ensure the credibility of these products, such as:
- Verified Carbon Standard
- The Gold Standard
- The Climate Action Reserve
Market need: For organizations that would like to support the development of more renewable power generation, a simple option involves the acquisition of (RECs). RECs represent the environmental attributes of one-megawatt hour (MWh) of electricity generated from renewable sources.
Purchasing a REC provides an additional revenue stream for renewable project developers, which supports the economics of constructing the facility. RECs achieve the same environmental result of contracting to purchase renewable power, but without the complexities and inefficiencies of scheduling that power from an intermittent resource across the power grid.
Shell Energy Environmental Solutions: Shell Energy can provide RECs from almost every state in the United States and from many Canadian provinces, and in some cases can match the geographic location of the renewable facility with that of the customer.
Cap and Trade
As society focuses on tackling the challenges of air emissions, market-based solutions have emerged as a means for reducing emissions in the most economically efficient manner, i.e. at the lowest possible cost. Cap-and-trade programs cap the levels of emissions for a particular sector of the economy, but provide compliance flexibility to capped facilities in order to contain costs. Two main products are often used in these programs – allowances and offsets.