In a significant legal victory, Shell has successfully overturned a landmark Dutch court ruling that had ordered the oil giant to slash its greenhouse gas emissions by 45% before 2030. The Court of Appeal in The Hague determined that whilst Shell must reduce emissions, there was ‘insufficient consensus in climate science’ to mandate specific reduction percentages for individual companies.
The original case, dubbed ‘The People versus Shell’, was initiated in 2019 by Friends of the Earth Netherlands alongside six environmental organisations and over 17,000 individuals. The ruling marks a crucial moment in climate litigation, though legal experts suggest it may not prevent future climate-related challenges against major polluters.
The court’s decision acknowledged that private companies could bear obligations under human rights law to mitigate climate change effects, creating a precedent that may influence future cases. Shell’s chief executive, Wael Sawan, welcomed the verdict, describing it as “the right one for the global energy transition.”
Shell’s current environmental targets include halving scope one and two emissions by 2030 compared to 2016 levels on a net basis. The company has already achieved a 31% reduction against 2016 figures and maintains its commitment to reaching net-zero emissions by 2050.
The environmental campaigners have three months to launch an appeal at the Dutch Supreme Court, with Friends of the Earth Netherlands’ chief executive Donald Pols characterising their fight against major polluters as “a marathon, not a sprint.”
The ruling’s impact reverberated through the markets, with Shell’s shares closing down 32p, or 1.3%, at £25.18 in London trading. The decision’s broader implications for corporate climate litigation remain significant, potentially influencing similar cases against other major industrial polluters across Europe.
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