The Hague Court of Appeal has reversed a groundbreaking decision that had previously directed the oil major Shell to cut its carbon emissions significantly.
In a 2021 verdict, The Hague District Court ordered Shell to slash its greenhouse gas emissions by 45% by the close of 2030 and reach net-zero by 2050, citing the company's duty to mitigate CO2 emissions to shield citizens from the severe consequences of climate change, as reported by .
The case was initiated by a cohort of NGOs, including Friends of the Earth Netherlands (Milieudefensie), marking a historic moment as it was the inaugural instance of a court imposing such an obligation on an energy firm, a move that reportedly sparked numerous analogous legal actions.
However, Shell contested the ruling, and today, the appellate court annulled the lower court's directive, reasoning that there is not yet a universally agreed-upon reduction target in climate science that a specific corporation like Shell must follow.
"We are pleased with the court's decision, which we believe is the right one for the global energy transition, the Netherlands and our company," expressed Wael Sawan, Shell's CEO, in response to the judgment today.
He further remarked: "As Shell has stated previously, a court ruling would not reduce overall customer demand for products such as petrol and diesel for cars, or for gas to heat and power homes and businesses. It would do little to reduce emissions, as customers would take their business elsewhere."
"We believe that smart policies from governments, along with investment and action across all sectors, will drive the progress towards net-zero emissions that we all want to see."
It remains to be seen whether Milieudefensie will decide to appeal the court's decision.
