The tradable permit scheme, known as STEPS, covers 30% of the group's total emissions from chemicals, refining, exploration and production businesses in Europe, the USA and Australia. Carbon dioxide and methane will be traded interchangeably with the 21-fold greater global warming potential of methane accounted for by weighting.
A limited quota of permits, each representing the right to emit 100 tonnes of C02 equivalent, will be allocated to participating sites. The quota will result from an agreed aggregate emission level, set overall at 98% of 1998 emissions levels in order to create an effective market. The permits will be traded on an internal website.
Chairman of Shell, Mark Moody-Stuart, said: "With the implementation of STEPS...I believe that our experience will enable the group to be an active participant in the design of a national [British] emissions trading system".
In 1998, BP's announcement of a 10% cut in 1990 levels of greenhouse gas emissions by 2002 (ENDS Daily 21 September 1998) was quickly followed by a similar one from Shell.
Shell International, tel: +44 20 79 34 30 45.
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