As the world’s voluntary carbon market has faced doubts about its effectiveness at slowing climate change, oil giant Shell has sharply increased its use of the market and was the world’s largest user in 2024, a new report shows.
Shell used 14.5 million carbon credits in 2024 to offset its own planet-warming emissions, according to an analysis by AlliedOffsets market researcher. In 2022, the company used nearly 3 million credits, Anton Root, AlliedOffsets co-founder and head of research, said in an email.
Carbon emitters acquire carbon credits by funding climate-protection projects and redeem them to make their own emissions seem lower, which can appeal to investors and regulators.
But the unregulated or voluntary carbon market, which has no government oversight, has been criticized for letting emitters acquire credits — and offset emissions — by funding projects that have little effect on climate change.
