Shell Can Sit On Its Sabre And Twist  

Business Green Blog has a look at Shell's sabre ratting at the EU about being warned it might have to pay for emissions permits in future (Heaven forbid - what sort of pollution tax makes the polluter pay ?).

It is easy to understand Shell's nervousness over the EU's plans, because ultimately they are designed to eradicate its oil-based business model. The whole point of the polluter pays principle is to accelerate the development of low carbon technologies and business models and wean us off of fossil fuels. Shell is part of a dying industry, it is just that it has no intention of going quietly.

What Europe's politicians and business leaders need to remember is that while many firms may threaten to leave as a result of the EU's climate change plans few actually will, particularly if the games of international diplomacy currently being played ensure that there is no competitive advantage for them to gain by doing so.

Moreover, where those firms that fail to adapt do end up declining - we're looking at you Shell - it is worth remembering that the jobs that are lost will be largely replaced by the emerging clean tech industry. It is worth noting that as Shell threatens to take jobs overseas the German government is reporting that by 2030 its renewables sector will be as big as its car industry.

Managing the decline of an industry, and the job losses and economic pain that go with it, is one of the ultimate tests of a politician's skill and strength and it looks like leaders across Europe are about to get tested.

How well they perform will determine both the entire bloc's credibility as a leader in the fight against climate change and all our chances of transitioning to a low carbon economy.

We can only hope they realise this and tell Shell and its supporters precisely what they can do with their rattling sabres.