Shell wins appeal against landmark court-ordered emissions reductions in The Hague

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Shell wins appeal against landmark court-ordered emissions reductions in The Hague

Donald Pols (C), Director of the Dutch environmental organization Dutch Friends of the Earth/Milieudefensie, addresses the press Tuesday as he leaves court in The Hague after losing a bid to block an appeal by Shell to overturn a ruling by a lower court ordering it to reduce its greenhouse gas emissions by 45% by 2030. Photo by Jeroen Jumelet/EPA-EFE

Oil giant Shell emerged victorious Tuesday from a Dutch court where it was appealing a 2021 ruling ordering it to slash its global carbon emissions by 45% by the end of the decade in line with the Paris Climate Agreement.

Overturning the District Court’s earlier decision, The Hague appeal court ruled it was unable to determine that a “social standard of care” obligation for Shell to cut its emissions existed — even though it owed it to Dutch citizens — throwing out the case brought by the Friends of the Earth Netherlands group and 17,000 petitioners. Advertisement

The court found the company was already working to bring down its emissions and the absence of any conclusive science on the levels of cuts required meant it could not say whether 45% was the correct reduction, or a different amount. Advertisement

However, the appeals judge ruled the human right to protection against dangerous climate meant large corporations like Shell should be tackling climate change regardless.

Friends of the Earth can appeal the decision to the Supreme Court, but getting a final decision is likely to take several years.

Shell welcomed the outcome saying it would help in the global transition to clean energy while maintaining the balance between maintaining a secure, affordable energy supply amid growing demand with the imperative of tackling climate change.

“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,” Shell Chief Executive Officer Wael Sawan said in a news release.

“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 said it was also working toward a 15%-20% reduction in the “carbon intensity” of its product line by 2030, from a 2016 baseline.

Calling it “a blow to climate justice,” Friends of the Earth Netherlands said the court’s ruling would come as a shock to people around the world worried about their future but vowed to fight on. Advertisement

“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,” Friends of Earth Director Donald Pols said in a news release.

“This setback will only help us grow stronger. Large polluters are powerful. But united, we as people have the power to change them.”

Friends of Earth International programs coordinator Kirtana Chandrasekaran said the court’s finding that corporations must respect human rights and are responsible for cutting emissions was cause for optimism.

“No matter what, people are rising up and the era of corporate impunity is over. We urgently need an end to fossil fuels, no loopholes from carbon markets and false solutions and for big polluters to pay up.”

The original 2021 ruling was the first time any company had been legally compelled to operate, not only within the law of the land, but in line with global climate policy in the form of the 2015 Paris Climate Accords under which 200 countries signed up to a pledge to keep global temperature rise to “well below” 2 degrees Celsius, preferably 1.5 degrees Celsius maximum. Advertisement

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