Angus Gillespie, Shell vice president of CO2, says the oil company budgets for new projects on the assumption it will pay $40 a metric ton for carbon emissions. Climate policies can cost potential projects “hundreds of millions of dollars,” Gillespie tells Bloomberg. “There are opportunities that we have not progressed because of the $40 a ton levy.”
This statement comes as the Obama administration announces new climate rules to limit power plants’ carbon pollution.
European Union emission costs may reach 30 euros ($41) a ton by the next decade, according to Bloomberg New Energy Finance.
Shell is one of more than two dozen major companies — including Walmart, BP, ExxonMobil and General Electric — that have integrated a price on carbon emissions into their long-term business plans, according to a CDP report. In 2013, 28 companies based or operating in the US disclosed that they use an internal carbon price in their financial planning. While Shell and BP use a cost of $40 per metric ton, ExxonMobil assumes a cost of $60 per metric ton.