Shell weakened its 2030 emissions target Thursday in an annual update on its energy transition strategy.

Shell said it will target a 15-20% reduction in net carbon intensity of its energy products by 2030 compared with 2016 levels. It had previously aimed for a 20% cut.

Shell has been  under pressure to slash its emissions by 2030  in order to meet the Paris Agreement target of limiting global warming  to 1.5 degree Celsius (2.7 Fahrenheit).

Since then, the energy giant said  it will focus more on reducing greenhouse gas emissions.

"Achieving this ambition will mean reducing sales of oil products, such as petrol and diesel, as we support customers as they move to electric mobility and lower-carbon fuels," Shell said.

Shell said that it believed gas and LNG will play a critical role in energy transition by replacing more polluting carbon in power plants.

Why did Shell lower estimates?

The company said it expects power sales, which include renewable power, to be lower than previously forecast.

"In line with this shift to prioritizing value over volume in power, we will focus on select markets and segments. This includes selling more power to commercial customers and less to retail customers," Shell said.

"Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target."

Shell said that it believed gas, and liquefied natural gas in particular, will play a critical role in the energy transition by replacing more polluting carbon in power plants.

It added that it would drop a plan to slash net carbon intensity by 45% by 2035 due to "uncertainty in the pace of change in the energy transition."

However, it still targets a 100% reduction by 2050.

ssa/wmr (Reuters, AFP)