The Hague Court annuls judgment in climate case against Shell

The Court of Appeal in The Hague has rejected the 2021 ruling in the case brought by the Netherlands arm of Friends of the Earth (Milieudefensie) and other campaigners against Shell. According to the court, Shell cannot be forced to specify specific percentages by which it must reduce CO2 emissions. Therefore, the court’s ruling at first instance has been annulled.

The Dutch ‘Milieudefensie’ and other organizations (including ActionAid, BothEnds, Fossielvrij NL, Jongeren Milieu Actief, de Waddenvereniging, and Greenpeace) had appealed to Shell to reduce the CO2 emissions it directly and indirectly causes by at least 45 percent by 2030.

The plaintiffs based that percentage on scientific reports on the global emission reductions needed to have a reasonable chance of limiting global warming to 1.5 degrees Celsius.

‘Duty of care’

However, the court ruled that such a general standard cannot be applied to Shell. According to the councilors, different reduction percentages may be necessary for each country and sector. “Shell does indeed have a ‘duty of care’ to limit CO2 emissions, but the exact manner in which this is done cannot be enforced in court.”

Shell’s chief executive officer, Wael Sawan, said the company is satisfied with the court’s ruling, “which we believe is the right one for the global energy transition, the Netherlands, and our company. Shell’s target to become a net zero emissions energy business by 2050 “remains at the heart” of its strategy and is transforming the business, he said.

Positive elements in the court’s ruling

A court ruling will not reduce customer demand for products such as gasoline and diesel for cars or gas to heat and power homes and businesses. “Such a statement will do little to reduce emissions because customers will simply switch to another supplier,” the company states.

Lawyer Roger Cox also sees positive points in the court’s ruling on Shell, even though the court has rejected the concrete claims about Shell’s CO2 emissions. “In other words, the court says very clearly that not only countries but also companies are responsible for reducing their emissions in line with the Paris Agreement,” Cox says. “It’s a statement for the entire business community.”

‘Counterproductive’

Meanwhile, the Dutch business community remains concerned about ‘climate lawsuits’. The employers’ organization VNO-NCW states that Dutch companies remain committed to the energy transition and the Paris climate goals. “However, these are mainly achievable through cooperation between companies, the government, and NGOs. Climate cases in court will just be counterproductive.”