The Energy Digital Year in Stories: December

January 06, 2025

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Manufacturing must overcome the problem of plastic

We look at the articles that made the news across the energy space 2024. Today, it is December’s turn, featuring Hitachi DS, Shell, Equinor and ADNOC

Global Plastics Treaty – Is ‘No Deal’ the Worst Outcome?

Accusations fly as leaders from across the globe leave the INC-5 Summit in Busan, South Korea, without achieving a long-sought-after agreement on a global plastics treaty.

This crucial conference, involving 200 nations, concluded this weekend without a comprehensive plan to effectively address plastic waste, an outcome many feared was influenced by the world’s top oil producers.

A new meeting, satirically dubbed INC 5.2, is now set for next year to further debate the draft treaty text that has evolved from discussions during the recent gathering.

Expectations were high for the Busan Summit, tipped to be a watershed moment in environmental diplomacy, anticipated to be on par with the 2015 Paris Climate Agreement in terms of global impact.

However, as the summit wrapped up, it was clear that a significant divide remains between nations advocating for strict controls on plastics and those whose economic interests are deeply intertwined with the continued use of fossil fuels for plastic production.

Despite notable support from more than 100 countries for a Panama-led initiative advocating for significant cuts in plastic production towards more sustainable levels, resistance was strong.

Saudi Arabia, representing oil-rich and plastic-manufacturing nations, reportedly led a coalition to thwart any treaty provisions that would curtail plastic production, which remains predominantly derived from oil and natural gas.

The operations to block impactful treaty terms underscored a complex mesh of economic and environmental tensions.

Luis Vayas, the Ecuadorian diplomat who chaired the negotiations, highlights the mixed outcomes of the discussions.

“While it is encouraging that portions of the text have been agreed upon, we must also recognize that a few critical issues still prevent us from reaching a comprehensive agreement,” he says.

Shell & Equinor's North Sea Deal a Stride for Sustainability

The merger of Shell UK and Equinor's North Sea assets, while unexpected, is no shock.

As global energy security remains volatile and some companies exit the North Sea, consolidation offers clear advantages.

By pooling their resources, infrastructure and financial strength, Shell UK and Norwegian energy giant Equinor have created the UK North Sea's largest independent oil and gas producer.

This strategic move combines their offshore assets and expertise, positioning the new entity to navigate the challenges of a maturing basin more effectively

Shell emphasises that the creation of this joint venture was a strategic move geared towards reinforcing energy security within the UK.

“The incorporated joint venture (IJV) will be set up to sustain domestic oil and gas production and security of energy supply in the UK,” it says.

“The new company will invest to provide a long-term sustainable future for individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK.”

Shell plc’s Integrated Gas and Upstream Director, Zoë Yujnovich, expresses that the joint venture will play a pivotal role in the balanced energy transition.

She adds: “The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on.”

These initiatives are particularly significant as the UK navigates the increasing geopolitical tensions, such as those exemplified by the Russian invasion of Ukraine, which underscore the necessity for self-reliant energy resources.