Shell intensified its climate and energy transition lobbying activities in 2025, expanding advocacy efforts across carbon pricing, hydrogen, LNG, methane reduction, sustainable aviation fuel (SAF), carbon credits and emissions trading systems as governments worldwide accelerated net-zero policy development.
The company said its lobbying activities are aligned with its strategy to “deliver more value with less emissions” while supporting the goals of the Paris Agreement and the global ambition to achieve net-zero emissions by 2050.
Shell report revealed that it expanded its global disclosure of industry association memberships in 2025, now covering all associations globally where it pays annual membership fees of $50,000 or more.
The company reviewed 49 industry associations for climate and energy transition alignment in its previous lobbying assessment. Shell found full alignment with 37 associations and partial alignment with 12 associations, highlighting continuing differences on selected policy positions.
Shell’s lobbying activities in 2025 covered several major policy themes, including:
Net-zero emissions strategies
Carbon pricing frameworks
Carbon credits and voluntary carbon markets
Upstream oil and gas regulations
Methane emissions reductions
Road transport decarbonisation
Sustainable aviation fuel
Shipping decarbonisation
Carbon capture and storage (CCS)
Hydrogen policy
LNG advocacy
In the European Union, Shell supported the amendment to the European Climate Law, which includes a binding target of a 90 percent net reduction in greenhouse gas emissions by 2040 compared with 1990 levels. The company also backed the use of international carbon credits for up to 5 percent of the EU’s 2040 climate target.
Shell actively lobbied in the United States to preserve clean energy incentives under the Inflation Reduction Act and Infrastructure Investment and Jobs Act. According to the report, industry advocacy helped retain the 45Q Carbon Sequestration Tax Credit, partially preserve the 45V Clean Hydrogen Production Tax Credit, and maintain limited support for the 45Z Clean Fuel Production Tax Credit, including SAF production incentives.
The company also advocated for preservation of the US Greenhouse Gas Endangerment Finding and the Greenhouse Gas Reporting Program.
On carbon pricing, Shell reiterated support for emissions trading systems, carbon taxes and hybrid pricing frameworks, describing carbon pricing as a “central pillar” of net-zero policy. The company co-chaired the International Working Group of the International Emissions Trading Association (IETA) during 2025 and contributed to major international carbon market policy papers linked to Article 6 of the Paris Agreement.
In Canada, Shell backed the government’s Climate Competitiveness Strategy, including multi-decade industrial carbon price trajectories extending to 2050. In California, the company supported extending the Cap-and-Invest Program to 2045.
Shell also increased lobbying efforts related to methane reduction. The company maintained methane emissions intensity below 0.2 percent across operated oil and gas assets in 2025 and achieved its target of eliminating routine flaring from upstream operations.
In aviation, Shell continued lobbying for sustainable aviation fuel adoption. The company advocated globally through ICAO, IATA, industry associations and European coalitions supporting SAF and e-SAF deployment. In the US, Shell lobbied to preserve SAF-related tax credits under the One Big Beautiful Bill Act.
Shell also participated in the World Economic Forum’s Airports of Tomorrow initiative and the Oil and Gas Climate Initiative aviation working group focused on lower-carbon aviation fuels.
In Europe, Shell supported the Sustainable Transport Investment Plan and advocated revenue certainty mechanisms to accelerate SAF production. In the UK, the company supported the Revenue Certainty Mechanism included in the Sustainable Aviation Fuel Act, which entered into force in February 2026.
For shipping decarbonisation, Shell backed the International Maritime Organization’s ambition to achieve net-zero emissions in global shipping by or around 2050. The company supported FuelEU Maritime regulations and global greenhouse gas intensity standards for shipping fuels.
Shell said its climate lobbying strategy combines direct engagement with governments and indirect engagement through industry associations, coalitions and international organisations, while maintaining transparency commitments through annual lobbying disclosures and public reporting.
Shell Paid Nearly $23.84 Billion to Governments Worldwide in 2025, Led by Brazil, Oman and Norway
Shell paid a total of $23.84 billion to governments worldwide in 2025 through taxes, royalties, production entitlements, bonuses, licence fees, and infrastructure-related payments linked to its oil and gas operations, according to the company’s latest Report on Payments to Governments.
The Shell report revealed that taxes accounted for the largest share of payments at $10.04 billion, followed by production entitlements of $8.04 billion and royalties of $3.77 billion. Fees and licence-related payments reached $1.63 billion, while bonuses totaled $360.6 million. Infrastructure improvement payments were comparatively small at $1.32 million.
Brazil emerged as the single largest recipient country with total government payments of $4.25 billion from Shell in 2025. The payments included $865.7 million in taxes, $1.2 billion in royalties, $459.7 million in production entitlements, $338.9 million in bonuses, and $1.39 billion in fees. Major projects contributing to these payments included Libra PSC and Mero, BM-S-9 and related offshore assets.
Oman ranked second with $3.99 billion in payments, mainly driven by $3.41 billion in taxes and $576.9 million in production entitlements related to Block 6 and Block 10 concessions.
Norway followed closely with total payments of $3.77 billion, including $2.12 billion in production entitlements and $1.65 billion in taxes associated mainly with the Ormen Lange project.
Qatar received $2.91 billion from Shell, primarily linked to the Pearl GTL project. The payment structure included $1.48 billion in production entitlements, $1.4 billion in taxes, and $31.5 million in fees.
Malaysia generated government payments of $2.38 billion for Shell, comprising $1.69 billion in production entitlements, $285.6 million in taxes, and $405.4 million in royalties. Nigeria also remained a major contributor with total payments of $2.02 billion, including $454 million in royalties and $1.24 billion in production entitlements.
Australia accounted for $1.82 billion in payments, led by $1.45 billion in taxes and $358.6 million in royalties from projects including QGC and North West Shelf. The United States contributed $1.12 billion, primarily through royalties of $1.12 billion linked to Gulf of America operations.
In Europe, Italy generated $144.4 million in government payments for Shell, while the United Kingdom contributed $122.2 million. Germany accounted for $77.8 million, largely in taxes.
Among African markets, Egypt generated $161.4 million in payments, Tunisia contributed $4.9 million, while Tanzania and Sao Tome and Principe recorded smaller payments tied mainly to licence fees.
Shell’s report also highlighted several countries where negative tax adjustments were recorded. India showed negative tax payments of $14.56 million, while the United States recorded negative tax payments of $23.9 million, reflecting refunds or tax adjustments. Mexico also reported negative fee-related payments of $137,827.
The report was prepared under the UK’s Reports on Payments to Governments Regulations 2014 and covers payments linked to extractive activities such as exploration, development and production of oil and gas resources.
BABURAJAN KIZHAKEDATH