Sponsor’s Remarks by Ms. Orissa Forde GM, HSSE Shell Trinidad and Tobago Limited at the Energy Efficiency and Renewables Conference 2019

It is a pleasure for me to be here this morning and be part of the discussions on what I consider to be one of the most critical challenges facing our world: finding more efficient ways to produce and consume energy so that we protect our planet for the generations after us. It is even more imperative for small island states like Trinidad and Tobago.

This discussion does not occupy the front pages of our daily newspapers, nor does it capture headline news, even though many of you in the room may believe it should. So, I must commend the Energy Chamber, its members and partners for hosting this two-day conference and facilitating the discussion.

Today's energy system is largely tied to fossil fuels that when used release greenhouse gases like carbon dioxide and methane into the atmosphere. The demand for energy is growing significantly across the globe and resulting in global warming. We need a cleaner energy system if we are to meet this growing demand and tackle climate change. To achieve this, the energy system must change. In the future, that energy system must be made of alternative products which, on average, release much lower levels of greenhouse gases for each unit of energy used.  In other words, they must have a lower carbon intensity – or what is commonly referred to as a low carbon footprint.

The products in the new energy system will include renewable electricity, biofuels and hydrogen, alongside oil and gas.

Shell is present at all stages of the energy system, providing oil and gas and low-carbon energy. And, as the world’s largest independent producer, marketer and trader of LNG, Shell is playing a leading role globally in helping the world achieve a low-carbon future. LNG as you know is a cleaner burning fuel and an ideal alternative to coal for producing electricity, as well as a less CO2 intensive option for shipping, heavy-duty road transport and industrial applications. Trinidad and Tobago is one of four major locations for Shell’s global LNG business.

In December 2017, Shell took the bold step to become a signatory to the Paris Agreement and in so doing, became the first oil and gas company to align our Net Carbon Footprint (NCF) ambition to the global standard within the Agreement. Our intention is to reduce the NCF of the energy products we sell by around 50 per cent by 2050. As an interim measure, our company plans to reduce its NCF by 20 per cent by 2035.

Shell has also gone a step further; this year we committed to set an unconditional three-year target to reduce our NCF by 2 – 3 per cent, as compared to what it was in 2016. We have committed to doing this target setting annually.

This announcement was not just words on a piece of paper for Shell as the salaries of our executives are tied, in part, to these targets.  Ladies and gentlemen, I share this not to garner likes and thumbs up, but to demonstrate that the sustainable future of this planet is a very important concern for us at Shell and that we take our role and responsibility in this global transformation seriously. As you know, the intent of the Paris Agreement is to keep the increase in the global average temperature to well below 2 degrees Celsius, compared to pre-industrialization levels. It might be hard to imagine that such a small number would require a near Herculean effort on the part of the planet’s 7.5 billion people to achieve. But it does. We need to achieve a dramatic reduction in greenhouse gas emissions, reaching a point of net zero global emissions within the second half of this century. We also need to make fundamental changes in the way energy is produced and used across the global economy. Greatest focus is required in the power, transport, buildings and industry sectors, which account for the bulk of greenhouse gas emission.

The world must change the way it uses energy and the types of energy it demands. And if Shell is to meet the ambition we have set for ourselves, we will have to be a part of this effort by changing what we sell.

Shell only controls its own emissions but by changing the mix of energy products we supply, we aim to help and influence others to lower their emissions.

Both energy demand and energy supply must evolve together. This is because no business can survive unless it sells things that people need and buy.

The theme of this conference points to a critical aspect of how we can successfully achieve the requirements of the Paris Agreement: through collaboration.

Governments, regulators and consumers, alongside companies and corporations, all have a major role to play. We have seen the tremendous results when the public and private sectors join with civil society to effect change and Shell is committed to forging the key partnerships towards more efficient energy utilization.

In terms of Collaboration at the national level,

In 2018, Trinidad and Tobago ratified the Paris Agreement.  Our country is committed to conditionally reduce its cumulative carbon emissions by 15% in the power generation, transport and industrialized sectors by 2030, which is equivalent to 103 million tonnes of carbon dioxide. The Ministry of Planning and Development and the Environmental Management Authority are spearheading efforts through public engagement to develop Climate Change interventions for the country through its Nationally Determined Contribution (NDC) program. The next stages will include rolling out the Nationally Determined Contribution (NDC) Implementation Plan in consultation and cooperation with the key stakeholders in the identified sectors, including testing of the monitoring, reporting and verification system.

Shell is very keen to support this work. Recently, Shell agreed to participate in the National Climate Mitigation Monitoring, Reporting and Verification (MRV) System developed by the Ministry of Planning and Development. The Monitoring, Reporting and Verification (MRV) Pilot Project aims to provide a central database for tracking and reporting of GHG emissions as well as monitor progress to reduce emissions. Once the pilot project is completed, all companies in T&T will be asked by the Ministry to use the system for uploading GHG data with the EMA being the repository for the data.

Shell has been monitoring its GHG performance for a number of years and using the results to inform the development of abatement strategies to reduce our emissions profile. We consider our participation at the pilot stage a critical step in establishing the country’s GHG Inventory.

Shell is committed to supporting the Government’s Climate Change Agenda and welcomes continued dialogue in support of: multi-stakeholder engagement, industry collaboration on Climate-related interventions, Climate policy formulation, emissions reduction and carbon market development.

We are committed to making our energy use and production more efficient so that we sell more efficient products to our customers and at a national level, we secure this country’s future in the sector.

The main sources of our GHG emissions are from fuel use, venting and flaring activities. Therefore, managing our GHG emissions is a key mitigation strategy with environmental, strategic and economic benefits that we have embedded within our ISO14001 certified Environmental Management System.  GHG abatement opportunities are defined and documented in our Energy and Emissions Management Plan which is updated annually. Core areas of focus at our operating sites include equipment efficiency and methane reduction. This year we are enhancing our Leak Detection and Repair program with a view to reducing our methane footprint.  Key benefits of this program include updated inventory of our methane emissions that will be independently assured using the Tier 3 dynamic reporting methodology and Optical Gas Imaging equipment.  This will ensure a targeted focus on repairing leaks and will result in fewer leaks to the environment.

 Natural gas remains one of the few energy sources that can be used across all sectors of the global economy, which is one of the reasons it remains critical to the energy transition. 

Natural gas also supports the integration of variable renewable electricity generation, while ensuring societies have access to supply that is reliable, sustainable and affordable.

New Energies and Natural Gas are therefore at the heart of delivering our global mandate to provide more and cleaner energy solutions to the world. Shell aims to become a global leader in cleaner power generation, taking advantage of our global footprint and experience with large-scale power infrastructure.

Natural gas and energy storage solutions must integrate with renewables to meet customers' evolving energy needs. Our integrated approach explores and expands:

Ø  Wind and solar, alongside natural gas;

Ø  Ways to connect customers with new business energy models;

Ø  Access to energy; and

Ø  The digitalisation of businesses.

Solar energy is one of the fastest growing and lowest cost renewable energy sources. As photovoltaic technology advances and manufacturing costs decrease, Shell is incorporating solar energy into its portfolio because customer choice is driving the shift toward decentralized electricity.

Ladies and gentlemen, there are many complexities to the issues of energy efficiency and climate change and aspects to which we still have questions. What we do know for certain is that it will take the collaborative efforts of those of us in this room and many others to ensure that we adequately address those complexities for the benefit of our country.

Shell is committed to this path. We will help this transition to a lower-carbon energy system by providing consumers with a range of cleaner energy products and cleaner power. We welcome the opportunity to participate in discussions such as these and to do the work that is required as we get to the right solutions. It not only makes good business sense; our planet depends on it!

 I wish you a productive conference over the next two days.

Thank you.