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The global dissemination to multinationals of the carbon emissions ruling on Shell

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  • López, Luis-Antonio
  • Arce, Guadalupe
  • Cadarso, María-Ángeles
  • Ortiz, Mateo
  • Zafrilla, Jorge

Abstract

Shell's landmark ruling ordered to reduce the CO2 emissions to the Shell group by a net 45% by 2030, compared to 2019 levels. In this paper, we analyze the effects of extending Shell's sentence to all the foreign affiliates of multinational enterprises (MNEs) in the world and find that it would result in a 2.85 GtCO2 reduction in global emissions. This amount represents a contribution of between 27% and 40% of the emissions reduction required to meet the 2030 global emissions level for not exceeding 2°C. We focus on MNEs in the automotive industry (such as Volkswagen, Toyota, Nissan, and Ford) and combine the information of their sustainability reports with multiregional input-output data of MNEs’ affiliates. We find that the current targets disclosed by those companies represent 8%-22% of the required reductions in their upstream emissions if the Shell sentence were extended to the automotive industry.

Suggested Citation

  • López, Luis-Antonio & Arce, Guadalupe & Cadarso, María-Ángeles & Ortiz, Mateo & Zafrilla, Jorge, 2023. "The global dissemination to multinationals of the carbon emissions ruling on Shell," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 406-416.
    • Handle: RePEc:eee:streco:v:65:y:2023:i:c:p:406-416
    DOI: 10.1016/j.strueco.2023.03.015
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    2. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).

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