Shell's Fake Carbon Credit Scandal Explained!

Europe’s largest oil and gas company Shell was accused in an investigative report from Greenpeace Canada of selling millions of carbon credits tied to CO2 removal that never took place.

Let’s look at what Shell did, how carbon offsets work, and how environmentally beneficial they actually are.

Patrick's Books:

Ways To Support The Channel

Patrick Boyle On Finance Podcast:

Join this channel to support making this content:

[jonpierson]

It is absolutely shocking how little I was shocked by this development.

[jasontang]

There are not enough credits in the world to offset the CO2 generated by the cash incinerator that is the carbon offset grift.

[erin]

I absolutely love (in an incredulous sort of way) that researchers theorized that a clean burning cook stove would reduce household firewood use, and instead of just... Testing that hypothesis on a small number of families, they skipped straight to wasting everyone's time and money instead.

[Iwani]

As a Zimbabwean, the idea that someone would give our “farmers” money not to cut down trees is hilarious. A brief look at recent history would tell you that no one is using those farms anyway 💀 it’s a large part of the reason why our country is in shambles.

Edit: it got funnier. Of course there’s no paper trail. Whose idea was this?? A mess.

[raskalthefirst]

Notes to self: business idea.
-step 1 get clearing permit for nature reserve in 3rd world country
- step 2: promise not to use it, and generate a ton of carbon credits
- step 3: profit!

[vylbird]

That radio allocation idea sounds so, so easily abusable.
1. Find really big, rich station.
2. Buy frequency rights in adjacent area.
3. Build huge transmitter and play Hamster Dance theme on loop.
4. "Oh, are we interfering with your station? That is unfortunate, but I'm sure we can negotiate a sale of our frequency usage rights..."

It comes down to the same problem as carbon credits at the end: The ideological commitment to markets. A lot of politicians are either personally attached or politically committed to the idea that market economics is the right answer to every problem. To the man who only has a hammer, everything looks like a nail.

[nekomakhea]

"houses issued the efficient stoves just used it as a second cooking surface and continued using open fires"
ah yes, induced demand, the bane of central planners everywhere

[enfisu]

The fact the most profitable business in history still relies on government subsidies is endlessly hilarious to me.

[Danish_]

4:57 I was expecting a follow-up line "my expertise in rap music doesn't seem to be applicable in this scenario, but who knows; the fraudulent credits may have been sold to someone looking to offset their private airplane"

[robsands]

Can’t they just buy a ton of those “you own this one square foot of land and that makes you a lord” certificates? Those seem as legit as “carbon credits”

[WhichDoctor]

The bottom line is no one involved in this system has any financial incentive to reduce or remove carbon emissions. And no one faces any financial penalties if the carbon emissions are latter proven to have not been removed or reduced . The only financial incentive anyone has in this process is to make it look like carbon emissions are going to be reduced for long enough to get the carbon credits printed. The only incentive to actually make this work comes from individuals own personal morality, and I’m sure we’re all aware of how much weight morals play in multinational corporate decision making. How can anyone believe that a marketplace is going to function properly if no one involved has anything to gain from that happening?

[dmoonmaster]

It's nice that it's possible, and virtuous, to 'truthfully' say "No cake was eaten in the production of this cake" when you did, in fact, eat cake but then paid for someone else to replace it.

[surturz]

Another great video from my number one channel for news about rap music and rapping

[TheApeMachine]

I used to work for South Pole... It was not good. The whole thing is basically an investment fund, and the investors are companies like Shell, BP, etc. Oil companies and banks, that's what it was really about.

[davidc]

Carbon credits are a scam to begin with... it's like me paying someone to lose weight for me while I continue to drink beer and pig out on potato chips.

[Aeonicentity]

I'm disappointed that in 30 min you failed to call this a shell game even once

[thomas]

In New Zealand we have a market pricing scheme (ETS) that allows people to plant trees and sell carbon credits. Unfortunately as soon as this was launched it proved wildly popular, it turs out planting non-native pine on marginal land is much higher return than actually farming the land.

Now government are quickly having to back-pedal on the scheme because they have been inundated with applications.

[bpora]

It's greenwashing. Just like plastics manufacturers fund recycling advocacy groups but won't cut new plastics manufacturing.

[Christopher_Gibbons]

I just want to clear up a common misconception. Forests are not chopped down for lumber. They are chopped down to make space to build on. Actual logging operations buy land and plant trees to be cut down repeatedly.

[kishisetasama]

I'm for the environment but I've always hated the hypocrisy of carbon credits, net zero, plastic straw bans and other corporate-touted and marketed initiatives. If it doesn't hurt your profitability by a lot, it's bogus.