Oil giant Shell has won a landmark legal case in the Dutch courts, successfully overturning a previous ruling that required the company to cut its carbon emissions by 45% by 2030.
The Hague Court of Appeal ruled that it could not establish a “social standard of care” that would compel Shell to reduce emissions by 45% or any other specific figure, despite agreeing that the company had a responsibility to limit its emissions in line with global climate goals.
The case originally stemmed from a 2021 ruling, when a Dutch court sided with environmental group Friends of the Earth and 17,000 citizens who argued that Shell should significantly reduce its CO2 emissions to align with the Paris Agreement on climate change. The ruling was the first time a court had ordered a private company to align its operations with global climate policies.
The appeals court, however, concluded that Shell’s current efforts to reduce its emissions were sufficient. While agreeing that companies like Shell have an obligation to contribute to climate change mitigation, the court stated it could not determine whether a 45% reduction or another specific target was appropriate, as there was no agreed standard in climate science for the exact level of emissions cuts required.
Shell, which has been working to lower its carbon intensity and has pledged to become a “net zero” emissions company by 2050, welcomed the court’s decision. The company maintains that it is already taking “serious steps” to reduce its emissions. It has set a target to reduce the carbon intensity of the products it sells by 15-20% by 2030 compared to 2016 levels. Shell argued that it was unfair to single out one company for a global issue and that the responsibility for tackling emissions lies with governments, not individual companies.
However, Friends of the Earth Netherlands, which initiated the case, expressed disappointment with the ruling, calling it a significant setback. The group has vowed to take the case to the Supreme Court, although a final decision could take years.
Donald Pols, director of Friends of the Earth Netherlands, said: “It’s a marathon, not a sprint, and the race isn’t yet over.” The group argued that companies, as well as governments, have a duty to uphold human rights by preventing dangerous climate change.
The ruling could have significant implications for corporate climate responsibility, as environmental groups around the world increasingly seek to hold companies accountable for their emissions through the courts.
