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Oil sector must take lead in climate debate - Shell CEO

Thu, 12th Feb 2015 00:01

* Van Beurden says industry risks losing credibility

* Says governments take ineffective steps to fight gasemissions

By Ron Bousso

LONDON, Feb 12 (Reuters) - The oil industry needs to take aleading role in the fight against climate change to introduce"realism and practicality" into the debate, the head of RoyalDutch Shell said on Thursday.

Shell chief executive Ben van Beurden also criticisedgovernments of taking at times counterproductive steps to reducegreenhouse gas emissions.

"What can we as an industry do to help clear the way for amore informed debate? In the past we thought it was better tokeep a low profile on the issue. I understand that tactic, butin the end it's not a good tactic," van Beurden said in excerptsof a speech he was planned to give at the InternationalPetroleum Week dinner in London on Thursday evening.

Environmental organisations have accused the oil industry ofnot doing enough to reduce emissions and increase the use ofrenewable fuels.

"You cannot talk credibly about lowering emissions globallyif, for example, you are slow to acknowledge climate change; ifyou undermine calls for an effective carbon price; and if youalways descend into the 'jobs versus environment' argument inthe public debate," van Beurden said.

Shell backed a resolution last month proposed by activistinvestors to force the company to recognise climate change risksby improving its transparency.

Van Beurden also criticised "inefficient or evencounterproductive measures" taken by governments.

He said that Germany, while increasing the use of renewableenergy sources, saw a rise in CO2 emissions in 2012 and 2013 asa result of the increased use of coal-powered plants.

"I'm well aware that the industry's credibility is an issue.Stereotypes that fail to see the benefits our industry brings tothe world are short-sighted. But we must also take a criticallook at ourselves."

"Our industry should be less aloof, more assertive. We haveto make sure that our voice is heard," the Shell boss said.

"Together, we can offer some realism and practicality to thedebate."

Oil and gas companies have come under increasing pressurefrom investors to take more action in the fight to lower carbonemissions.

In December, the Church of England filed a shareholderresolution on climate change at Shell and BP.

Last year, the European Union set a 40 percent goal for cutsin emissions, mainly from burning fossil fuels, below 1990levels by 2030. (Reporting by Ron Bousso, editing by Louise Heavens)

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