Shell wins appeal in landmark climate ruling

A Dutch appeals court on Tuesday overturned an order that would have required the oil and gas company to cut its 2019 levels of carbon emissions by 45% by 2030. A district court in The Hague issued the original ruling in 2021 after Milieudefensie, the Dutch arm of the environmental group Friends of the Earth, brought a case against Shell. The group argued that Shell had a duty to reduce emissions to protect people in the Netherlands and around the world. The London-based company appealed the verdict and argued that the court ruling would not help reduce emissions as it would not reduce demand for oil. The court on Tuesday found that while Shell did have an obligation to citizens to reduce emissions, governments are primarily responsible for protecting against the effects of climate change. Milieudefensie can appeal the ruling to the Dutch Supreme Court.

How have the parties responded? Shell on Tuesday welcomed the ruling and said it was the right decision. The company aims to become a net-zero emissions business by 2050, CEO Wael Sawan wrote in a press release, and Shell is investing billions of dollars in low-carbon energy solutions.

Meanwhile, Friends of the Earth International called the decision a blow to climate justice but highlighted its affirmation that corporations bear some responsibility for reducing emissions. Milieudefensie Director Donald Pols said the group considered the judgment to be a setback, but would continue working to hold companies accountable.

What else is happening regarding climate change legislation? International leaders gathered this week in Azerbaijan for the UN’s annual 12-day climate summit called COP29. Meeting attendees are aiming to discuss how to reduce carbon emissions by transitioning away from fossil fuels. Meanwhile, the UN International Court of Justice in December is set to hold public hearings on climate change.

Dig deeper: Read my report in The Sift about how UN diplomats agreed to transition away from fossil fuels.