Guangzhou, 10 June 2015: The Guangdong Branch of Huaneng Power Int’l lnc and Shell Energy (China) Ltd today signed in Guangzhou one of the largest bespoke structured deals in the China carbon market. Huaneng Carbon Asset Management Co Ltd and the China Emissions Exchange Guangzhou (CEEX) witnessed the signing. The deal is an innovative design, combining swaps of emission allowances, Chinese Certified Emissions Reductions (CCERs) and over-the-counter (OTC) trades. Compliant with both national regulations and that of the Guangdong province, the structured deal combines several types of environmental trading products, which can help promote the healthy development of the Chinese carbon market.

Guo Liang, General Manager of the Guangdong Branch of Huaneng Power Int'l Inc, said: “We are pleased to work with Shell on the CO2 trading front to capture value and contribute to the healthy development of carbon trading in Guangdong. The Huaneng Guangdong Branch always attaches great importance to energy saving, emission reduction and carbon asset management. Our Haimen power plant is the first in the China Southern Power Grid equipped with a million kilowatts ultra-supercritical thermal power unit and its economic indicators top the industry in China. Our Shantou power plant is the only coal burning thermal power plant listed in the first group of enterprises certified for clean production in Guangdong. With support from Huaneng Carbon Asset, the Guangdong Branch will invest the captured value from carbon trading to accelerate technology upgrading and promote transformation towards a green and low carbon enterprise.”

Shell is one of the largest carbon traders in the international market. This is Shell’s first carbon deal in China involving both allowances and offsets, making it one of the first wholly owned foreign entities (WOFE) to participate in the Chinese emissions market. Shell is a leader in CO2 trading with more than a decade of experience in global carbon markets. The company offers comprehensive products and solutions from spot transactions to complex structured OTC deals for customers across the globe. Shell is active on all fronts of carbon management as demonstrated through innovation in carbon reduction technologies and its leading role in the discussion about climate change.

Huibert Vigeveno, Executive Chairman of Shell Companies in China, said: “The Huaneng Group is one of China’s leading energy companies and we are excited to work with Huaneng in the China market. We believe that carbon trading can play an important role in helping reduce China’s CO2 emissions. Shell is proud to bring its international trading experience to China and make a contribution to the development of the country’s carbon market.”

Huaneng Power Int’l lnc, in which China Huaneng Group is the controlling shareholder, is one of the largest listed power companies in the world and an active carbon trader in China and around the world. Its power plants were involved in the first deals in most pilot markets in China for compliance. The collaboration between Huaneng and Shell demonstrates support of both parties for China’s emissions trading as well as commitment to the development of that market.

Ning Jinbiao, General Manager of Huaneng Carbon Asset Management, said: “Huaneng Carbon Asset is the operation platform of China Huaneng Group for developing, managing and trading emission allowance and offsets and is also one of the first traders in China’s carbon market. We are happy to co-design this innovative deal jointly with Shell and be involved in carbon trading with support from CEEX . ”

Now in the China carbon market, compliance entities can use environmental products, such as allowances and offsets, to meet emission reduction targets and compliance obligations.

Jin Guoliang, President of China Emissions Exchange Guangzhou, said: “We thank both Shell and Huaneng Carbon Asset Management for localizing a global carbon trade practice, designing a structured deal on the Guangzhou exchange, and creating an innovative carbon product. The Exchange will keep practicing our mission, which is serving members and the physical economy of China. ”

CEEX is one of seven carbon trading exchanges in China, covering Guangdong - the largest pilot market in the country.

Enquiries:

He Yi

Assistant Manager

Huaneng Carbon Asset Management

China Huaneng Group

Tel: (86-10) 63081973

Email: hey@hncarbon.com.cn

Steel Shen

Spokesperson

Shell Companies in China

Tel: (86-10) 65295484

Email: steel.shen@shell.com

Notes to the editor:

Shell Energy (China) Limited, the trading entity for Shell in China, is registered in the Shanghai Free Trade Zone. An integral part of Shell’s global trading network and one of the world’s leading carbon traders, it leverages decades of knowledge and expertise to offer customers a competitive and diversified portfolio of LNG, gas and CO2 emissions management and strategy options in China. Our Environmental Products Trading Business actively pursues opportunities in environmental markets around the world. Shell Energy (China) Limited is the first wholly owned foreign entity to participate in the Chinese emissions market.

China Huaneng Group is a key power enterprise established with the approval of the State Council. By the end of 2014, its total installed capacity in China and overseas reached 150 million kilowatts, top of the world. Other businesses supporting the core power business of the Group include coal, finance, technology research and development as well as logistics, and all have a certain scale. Huaneng Power Int’l lnc, in which China Huaneng Group is the controlling shareholder, is listed in New York, Hong Kong and Shanghai. It is also the largest listed power company in the world.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2014 (available at and ). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 10 June, 2015. Neither Shell nor any of its subsidiaries nor the Shell Group undertakes any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.