In focus: Both political and corporate efforts needed to amp up transition to clean energy

Both government and commercial efforts are needed to speed up the transition to clean energy, since, as Shell says, the transition is not just about reducing CO2 emissions, but it is rather a political balancing act that needs government-led policies.

It is certainly challenging for some countries and corporate organizations that are financially reliant on fossil fuels to fully embrace the energy transition pathway. However, the sooner clean energy is made widely available, the better our chances to win in the global fight against climate change.

One of the major global energy players Shell, for example, has publicly committed in 2020 to become a net-zero business by 2050.

Still, a ruling made by a Dutch court less than a year ago ordered the company to speed up its emission cuts and to reduce its worldwide aggregate carbon emissions by 45 per cent by 2030, noting it also considered Shell responsible for emissions from customers and suppliers.

Shell questioned the court’s decision to single out an energy company, filing an appeal against the ruling earlier in March.

Specifically, Shell is questioning how the company can have a legal obligation to reduce CO2 emissions it does not control from customers who are not under similar legal obligations to reduce their emissions.

“Focusing on one company, as the District Court has done, results in others meeting the needs of that company’s customers, not in a reduction in demand.

“This is a political balancing act, requiring effective, government-led policies. These challenges cannot be solved by litigation between private parties and judgments against individual companies,” Shell said.

Regardless, Shell is progressing with its clean energy plans having announced an investment of up to £25 billion ($32.8 billion) in the UK’s energy system over the next ten years. Here, offshore wind is one of the main areas Shell is focusing on. Additional main areas of focus include hydrogen and electric mobility.

Shell is not the only industry player making advances in the energy transition space, as more often than not, the industry is actually paving the way for concrete political moves, rather than the other way around.

In Germany, Belgian hydrogen company Tree Energy Solutions (TES) is is developing a green energy hub in the port of Wilhelmshaven. TES has now signed a partnership agreement with energy company E.ON to look into potential joint engagements along the entire hydrogen value chain. The goal is to build a source for a secure, long-term green hydrogen supply.

“Our ambition is to build the Wilhelmshaven location into a hub for international hydrogen trading and upgrade the infrastructure accordingly. Through this hub, TES will supply a mix of green and clean energy to economically lead Europe to reach its net-zero ambitions,” said Paul van Poecke, founder of TES.

Meanwhile, authorities in Hamburg are looking into locations for a floating LNG terminal. The terminal is to reduce dependence on Russian energy imports as quickly as possible, along with providing LNG as a transitional fuel towards cleaner ones like hydrogen and ammonia.

In Italy, shipbuilding giant Fincantieri has partnered up with compatriot engineering company RINA to look into new fuels and energy vectors – in particular hydrogen and ammonia – and carbon capture. In the field of renewable energy, the two companies will focus on offshore wind power plants and technological solutions for wave energy.

RINA and Fincantieri said they will also co-participate in EU-financed R&D projects and engage in the development of ‘green finance’.

Furthermore, a number of ports in Northern Europe and the Baltic Sea have formed a climate action partnership with the Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping to initiate the new European Green Corridors Network.