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* Shell expects to spend about $100 mln a year on scheme
* Available in the Netherlands from April 17, UK later thisyear
* Initiative is part of Shell clean energy budget of up to$2 bln(Adds detail, background)
By Shadia Nasralla
LONDON, April 8 (Reuters) - Dutch drivers seeking to offsettheir impact on the environment will soon be able to do so atShell petrol stations with credits to supportinitiatives such as tree-planting projects.
The scheme is due to launch in the Netherlands this monthbefore being expanded to other countries, the oil major said onMonday as it outlined plans to invest $300 million in theprogramme over the next three years as part of its clean energybudget of up to $2 billion a year.
The programme is similar to schemes used by some airlinesand counts towards Shell's target to cut its net carbonfootprint by 2-3 percent within three years, including so-calledScope 3 emissions generated by customers rather than thecompany's own operations.
Other energy giants, such as BP and Total,have not yet committed to cutting Scope 3 emissions.
Shell's investment will mean the credits incur no extra costfor customers who choose Shell V-Power petrol or diesel. Thosewho fill up with regular Shell petrol or diesel can participatefor an additional 1 cent a litre.
"Shell buys these credits from a global portfolio ofnature-based projects ... Each carbon credit is subject to athird-party verification process and represents the avoidance orremoval of 1 tonne of carbon dioxide," Shell said.
The scheme will have to be scaled up to have a bigenvironmental effect, said Shell's head of Integrated Gas andNew Energies, Maarten Wetselaar.
The voluntary and compliance-based markets for carboncredits covered around 30-40 million tonnes of CO2 in 2017,Shell estimates.
HUGE CHALLENGE
At benchmark prices, Shell estimates $300 million can buyaround 60 million tonnes of carbon, with one litre of diesel orgasoline accounting for about 2.5 kg of carbon.
But the challenge is huge.
Research cited by Shell said a reduction of 11 billiontonnes of CO2 a year - equivalent to the emmissions of theUnited States and European Union combined - would account forabout a third of reductions needed to keep global warming under2 degrees celsius.
"The key thing we're trying to achieve is to help customersdecarbonise their energy usage," Wetselaar said.
"If we can do that over time by building a profitablebusiness generating carbon credits at a cheaper cost than themarket price, then we'll obviously take that."
Dutch drivers will be able to use the credits for what Shelldescribed as "carbon neutral" driving from April 17. The schemewill then expand to other countries, starting with Britain laterthis year.
Oil majors have also been expanding gas operations andbuying into electricity-related projects among efforts tofuture-proof their businesses for a lower-carbon world.
Shell drew rare praise from investors and environmentalactivists in December when it set out plans for targets toreduce greenhouse gas emissions and link them to executive payand an activist group on Monday said it had withdrawn ashareholder resolution calling on the company to change itsclimate policy.
(Editing by Kirsten Donovan and David Goodman)
