In a major victory for the oil and gas industry, Dutch energy giant Shell has won an appeal against a landmark 2021 court ruling that ordered the company to slash its carbon emissions.
The original 2021 case was brought by Dutch environmental groups, who sued Shell and won a court order for the company to cut its absolute CO2 emissions by 45% by 2030 compared to 2019 levels. This included emissions from the use of Shell's products by consumers.
However, on appeal, the Dutch court has now overturned that previous ruling. The appeals court in The Hague, where Shell was headquartered before moving to London in 2022, dismissed the 2021 order for the aggressive emissions cuts.
"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," said Shell CEO Wael Sawan in a statement.
The environmental groups behind the original lawsuit, led by Milieudefensie (Friends of the Earth Netherlands), expressed disappointment with the appeals court's decision. They said it was a "setback" for the climate movement, but vowed to continue their fight against major polluters.
"We are feeling the effects of climate change more harshly each day. So we won't stop until all polluters go green. We are confident the victory will be ours in the end," the group said.
Shell maintained that demands for companies to reduce emissions could not be made by courts, but rather should be set by policymakers. The appeals court agreed, stating that an absolute order to cut emissions from Shell's products could have adverse global effects by potentially driving customers to use more polluting energy sources.
Despite the legal victory, Shell says it remains committed to achieving net-zero emissions in its business by 2050, and is working to cut emissions from its own operations by 50% by 2030.
The case highlights the ongoing tensions between the fossil fuel industry, environmental activists, and the role of the courts in addressing climate change. While this ruling is a setback for climate campaigners, the battle over Shell's emissions is far from over.
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