Supermajor Shell is facing the Netherlands’ Supreme Court in an emissions lawsuit that a few years ago led to a ruling forcing the company to slash emissions from operations by 45% by 2030, which was later overturned at a higher court.
Back in 2021, the District Court in The Hague ordered Shell to reduce its carbon dioxide emissions by 45% by 2030 in a landmark ruling on a suit brought in front of the court by environmentalist group Milieudefensie, other NGOs, and a group of private individuals.
At the time, commentators said that the ruling had the potential to set precedents for other oil companies. These emission reductions were to include the so-called Scope 3 emissions, those generated by the use of Shell’s products, per the order of the district court in 2021. Shell appealed the ruling, and in 2024, the appeals court overturned the district court’s ruling.
Shell welcomed the appeals court judgment, with CEO Wael Sawan saying, “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.” Shell had argued that a court ruling would do little to reduce overall customer demand for petroleum products or for natural gas to heat and power homes and businesses. The company has also argued it was not up to courts to impose limits on companies’ operations—a prerogative of the legislative system.
Milieudefensie then took matters to the Supreme Court. “Judges have already confirmed that Shell is responsible for reducing emissions and to make its own contribution to the Paris Climate Agreement,” the lawyer representing Milieudefensie (Friends of the Earth), said last year. “There is enough of a legal basis to make the ruling more specific and stronger,” he added at the time.
Shell will maintain its position, too, although earlier reports said the Supreme Court will not look into the arguments and will not be reviewing the facts and evidence that the lower courts considered, but would rather focus on whether procedure was followed accurately and whether the lower courts had the right motivation for their rulings.
By Irina Slav for Oilprice.com
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