Oil giant Shell has won a landmark case in the Dutch courts, overturning an earlier ruling that required it to cut its carbon emissions by 45%.
The appeals court in The Hague said it could not determine whether Shell had a “social concern” to reduce its emissions by 45% or any other amount, although it acknowledged that the company has a responsibility to citizens to limit emissions.
Three years ago, a court in The Hague supported the case of Friends of the Earth and 17,000 Dutch citizens requiring Shell to reduce its CO2 emissions significantly, in line with the Paris climate agreements.
The decision came as climate talks involving about 200 countries began in Azerbaijan.
Shell said he was happy with the court’s decision, but Friends of the Earth Netherlands said it reversed the decision, which affected them the most.
The environmental group can now take its case against Shell to the High Court – but a final decision could be years away.
Donald Pols of this group said “it is a marathon, not a run and the race is not over yet”.
At the time, the 2021 decision was the first time a court had ordered a private company to comply with the Paris climate agreement, meaning that it wasn’t enough for the company to simply comply with the law – it had to comply with the rest of the world. climate policy too.
Under the terms of the Paris Agreement on climate change, nearly 200 countries have agreed to keep global temperatures “well below” 2C above pre-industrial levels.
An appeals court judge said companies like Shell are obliged to contribute to the fight against climate change based on the human right to be protected from harmful climate change.
However, the court said that Shell is already working to reduce greenhouse gas emissions and the court could not determine whether it should reduce by 45% or another percentage, because there is no currently accepted agreement in climate science about the required amount.
Shell has argued that it is already taking “serious measures to reduce emissions”. It complained that the first decision was unfair as it singled out one company for a global issue, saying it was pointless to try to make Shell answer for its customers’ choices.
Shell said that if people see slow progress in reducing pollution, they should lobby governments rather than Shell changing policies and bringing green reforms.
The oil company says its goal is to reduce the carbon footprint of the products it sells by 15-20% by 2030 from a 2016 baseline. Shell also aims to become a “net zero” emitting company by 2050.
Part of the landmark lawsuit hinges on the definition of “unwritten duty of care” under Dutch law, which requires companies to avoid gross negligence.
Friends of the Earth Netherlands argued that there is an international consensus that human rights provide protection from dangerous climate change and that companies should respect human rights.
A successful application by Shell could have a significant impact on corporate climate commitment.
A number of environmental organizations around the world are now trying to force companies and governments to comply with the agreements through the courts.
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