Dutch Court Overturns Landmark Emissions Ruling Against Shell in Climate Case
In a pivotal legal decision, a Dutch court has overturned a prior ruling that required oil giant Shell to reduce its carbon emissions by 45%, dealing a setback to environmental advocates. The Hague Court of Appeal determined it could not legally enforce a specific reduction target on Shell, despite affirming the company’s duty to contribute to global emissions reduction.
This appeal ruling reverses a 2021 decision that mandated Shell align its operations with the Paris Agreement on climate change, a case initially brought forward by Friends of the Earth Netherlands and backed by over 17,000 Dutch citizens. The 2021 verdict marked the first instance where a court ordered a private company to comply with international climate agreements, but Shell successfully challenged the enforceability of that ruling.
Shell expressed satisfaction with the latest decision, emphasizing its ongoing commitment to emissions reduction. The company has argued that it is already implementing significant steps to lower emissions and that focusing on a single corporation for a global issue is impractical. Shell stated that if more rapid progress is desired, policy changes should be directed at governments to drive a broader green transition.
Shell’s current strategy includes a goal to reduce the carbon intensity of its products by 15-20% by 2030 from a 2016 baseline, with an ultimate ambition to reach net-zero emissions by 2050. The appeals court acknowledged that Shell’s existing actions towards emissions reduction met a standard of care but ruled that setting a precise reduction figure was beyond its jurisdiction given the lack of a universally accepted scientific benchmark.
Friends of the Earth Netherlands expressed deep disappointment in the ruling but vowed to continue the fight by potentially appealing to the Supreme Court. Donald Pols, director of the group, said that this decision “is part of a long journey” toward climate accountability.
The ruling arrives as nearly 200 countries gather for climate talks in Azerbaijan, underscoring the challenge of uniting legal and corporate standards with global climate goals. The case has underscored the debate on whether companies are bound by an “unwritten duty of care” under Dutch law to prevent environmental harm, a principle that Friends of the Earth argued includes protecting human rights against the risks of climate change.
Environmental advocates globally have increasingly turned to the courts to push for adherence to climate agreements. This verdict may influence future cases, shaping the role of private corporations in meeting international climate commitments and defining corporate accountability in tackling climate change.