Dutch court overturns groundbreaking ruling and sides with Shell in climate case

Published on: 12/11/2024 – 13:07

2 minutes

The Court of Appeal ruling, which shocked environmental groups including Milieudefensie, which led the case, reverses a historic decision made three years ago.

At the time, a lower Dutch court ruled that Shell must reduce its CO2 emissions by 45 percent by 2030 because it contributes to the “serious” consequences of climate change.

Both Shell and environmental groups appealed, with Shell itself appealing the ruling and climate activists saying the oil giant did not implement the ruling.

But on Tuesday, Court of Appeal Judge Carla Joustra said: “The final judgment of the court is that Environmental Defense‘s claims cannot be granted. The Court of Appeal therefore sets aside the original judgment.”

The Hague Court of Appeal’s ruling comes as governments from some 200 countries come together during the Cop29 talks in Azerbaijan to discuss climate action, including the clean energy transition.

Paris Agreement

The 2021 ruling was seen as a historic victory for climate activists, including Milieudefensie – the Dutch branch of Friends of the Earth – and six other groups that brought the case.

It was also the first time that a company had to align its policies with the 2015 Paris climate accords.

However, appeal judges disagreed with climate groups, saying that “Shell is already doing what is expected of them.”

“Shell must make an appropriate contribution to the climate objectives of the Paris Agreement,” Joustra said.

“However, existing climate legislation does not provide for a specific reduction percentage for individual companies,” the judge said.

Shell is appealing against the court’s ruling requiring the company to reduce greenhouse gas emissions by 2030

She added that although Shell “as a major oil and gas company” had an obligation to curb climate change “largely caused by companies in industrialized countries… this did not mean the court could apply the general standard of 45 percent to Shell apply. .”

Milieudefensie responded with disappointment. “This (verdict) hurts,” said Milieudefensie director Donald Pols. “We will continue to tackle the major polluters, such as Shell,” said Pols.

Shellwhich calls lawsuits “ineffective” to tackle climate change, welcomed the ruling.

“We do not believe that a court ruling against a company is the right solution for the energy transition,” the group says on its website.

“We are pleased with the court’s ruling, which we believe is the right one for the global energy transition, the Netherlands and our company,” Shell CEO Wael Sawan said in a separate statement.

Crucial point for the climate

Tuesday’s ruling follows four days of hearings in April in which Shell and environmental groups presented their arguments before the judges.

“This verdict could be a crucial point for the climate,” Milieudefensie said on its website prior to the case.

“We have been putting pressure on Shell and other major polluters for years who are doing too little for the climate.”

Climate summit in Azerbaijan criticized for the influence of fossil fuels

“If they don’t take action, we cannot stop climate change,” Milieudefensie said.

Shell says it will invest around $10 billion to $15 billion in low-carbon energy solutions between 2023 and 2025, representing 23 percent of its total capital expenditure.

The 2015 Paris Accords pledged all countries to cut CO2 emissions to limit warming to two degrees Celsius (3.6 Fahrenheit) above pre-industrial levels and encouraged them to aim for 1.5 degrees.

(with AFP)