Shell Wins Landmark Climate Case Against Green Groups

Oil and gas major Shell plc (NYSE:SHEL) (London, England) has secured a landmark win in its appeal against a Dutch court ruling that ordered the company to slash its greenhouse gas emissions by 45% by 2030.

A court of appeal in the Netherlands has overturned a lower court ruling from the summer of 2021, which could have set a precedent for many companies in the oil and gas sector. The original ruling against Shell was the first time a private company was court ordered to adjust its targets in line with the Paris climate agreement, not just existing laws. At the time the company was ordered to start cutting its emissions "at once" in order to comply with the high target. The case was brought by Friends of the Earth Netherlands (Milieudefensie), NGOs and more than 17,000 co-plaintiffs, which had argued that the oil giant's plans should be brought into line with the Paris Climate agreement. For additional information, see June 7, 2024, article - Oil and Gas Majors Hit Hard by Green Revolts.

Shell welcomed the decision. "We are pleased with the court's decision, which we believe is the right one for the global energy transition, the Netherlands and our company," said Shell plc Chief Executive Officer Wael Sawan. "Our target to become a net-zero emissions energy business by 2050 remains at the heart of Shell's strategy and is transforming our business. This includes continuing our work to halve emissions from our operations by 2030. We are making good progress in our strategy to deliver more value with less emissions."

Shell took flak earlier this year for watering down its 2030 emissions reduction target from 20% to 15-20%, as well as announcing plans to strongly grow its liquefied natural gas (LNG) business and hold its oil output steady instead of reducing it yearly as once promised.

Donald Pols, director of Milieudefensie, said: "We are shocked by today's judgment. It is a setback for us, for the climate movement and for millions of people around the world who worry about their future. But if there's one thing to know about us, it's that we don't give up. We see that this case has ensured that major polluters are not inviolable and has further fueled the debate about their responsibility in combating dangerous climate change. That's why we're going to continue to tackle big polluters, like Shell."

Shell added that a court ruling would "not reduce overall customer demand for products such as petrol and diesel for cars, or for gas to heat and power homes and businesses. It would do little to reduce emissions, as customers would take their business elsewhere." The company has pledged to spend US$10 billion to $15 billion between 2023 and the end of 2025 in low-carbon energy solutions including charging for electric vehicles (EVs), biofuels, renewable power, hydrogen, and carbon capture and storage. It stated that it had invested US$5.6 billion in low-carbon solutions in 2023, almost a quarter of its capital spending.

Contact us for more information.

If you want more news, click here.