A Dutch court will rule on Tuesday whether to uphold a landmark decision that ordered Shell to reduce its carbon emissions, according to a Reuters report.
The original ruling in 2021 directed the oil giant to cut its absolute greenhouse gas emissions by 45% by 2030, compared to 2019 levels. This includes emissions generated by use of Shell’s products, not just its operations.
Shell’s Appeal and the Potential Outcomes
The appeals court in The Hague has the option to either uphold or dismiss the ruling in its entirety. Alternatively, it may choose to modify the decision, for example, by excluding emissions generated by the use of Shell’s products.
Regardless of the decision, the case is not expected to end here. Both Shell and the climate groups that brought the case can still appeal to the Dutch Supreme Court. This long-running legal battle could continue for months, even years.
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Shell’s Argument and the European Court’s Support
Shell has argued that courts do not have the authority to impose such emissions reductions. The company claims that only national governments can enforce such requirements, not the judiciary. In its defense, Shell has also suggested that the ruling could force the company to shrink its operations without contributing meaningfully to reducing global emissions. According to Shell, customers may simply switch to other suppliers, rendering the reduction in business ineffective.
On the other hand, Friends of the Earth Netherlands, the group that filed the lawsuit along with other climate organizations, argued that climate change is a human rights issue. They feel strengthened by a recent European Court of Human Rights ruling, which affirmed the importance of climate action in protecting human rights.
The Original Ruling
In the initial 2021 ruling, the court found that Shell’s climate policy was insufficient and vague. The judges stated that the company’s policy was “not concrete and full of conditions.” The ruling emphasized that Shell could face legal consequences for failing to meet its emission reduction obligations.
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As a result, the court ordered Shell to make absolute reductions in its emissions rather than relying on intensity-based targets, which could theoretically allow the company to grow while still meeting targets.
At the time the case was brought, Shell had its headquarters in The Hague, although the company is headquartered in the UK.
Significance of the Case
The case has garnered international attention as it reflects growing pressure on major corporations to take more responsibility for their role in climate change.
It also represents a significant legal precedent in the push for companies to comply with global climate goals, beyond voluntary corporate commitments. As COP29 takes place in Baku, the outcome of the court’s ruling could influence future legal battles around corporate emissions worldwide.