Oil and gas giant Shell won an appeal in The Hague against a 2021 ruling that required the company to cut absolute carbon emissions by 45 percent by 2030. The court agreed with Shell, stating that a mandated emissions cut could shift customers to more polluting alternatives, like coal.
While recognizing Shell’s responsibility to reduce emissions, the court emphasized that demands for emission cuts should be imposed by states, not companies. Shell argued that its reduction targets were already significant for its production, having achieved a 30 percent emissions reduction below 2016 levels by last year.
Friends of the Earth Netherlands, the organization behind the original case, expressed disappointment but vowed to continue fighting major polluters. The organization has not yet announced if it will appeal to the Netherlands’ Supreme Court.
This ruling coincides with the COP29 climate summit in Baku, Azerbaijan, where discussions on fossil fuels were delayed due to debates over their agenda prominence, Reuters news report said.
Shell CEO Wael Sawan supported the decision, calling it beneficial for the global energy transition. Shell has plans to invest $10-15 billion in low-carbon energy by 2025, despite scaling back some renewable efforts. It recently lowered its targets for reducing carbon intensity in its product lineup to 15-20 percent by 2030.
On the same day, Shell and Equinor urged a Scottish court to uphold Britain’s approval for two North Sea oil and gas fields, resisting environmental activists’ efforts to block the projects.
Citi analysts suggested that this ruling reinforces shareholder control over Shell’s strategy and marks a positive outcome for the company’s future plans.