Oil giant wins case against climate activists

British oil giant Shell has won a landmark case against environmental groups in the Netherlands, which had demanded that the energy corporation sharply reduce greenhouse gas emissions.

The appeals court in The Hague overturned a 2021 ruling in the case brought against Shell by Friends of the Earth, other NGOs, and a group of individuals, the corporation said in a statement on Tuesday.

The green activists sued the company in 2019, arguing that Shell had an obligation to cut its greenhouse gas emissions to protect people from global warming.

The subsequent ruling two years later ordered Shell to cut its carbon emissions by 45% by 2030 compared to 2019 levels. The ruling extended to both the company’s emissions and those caused by the use of its products, such as people burning its fuel in their cars.

The court stated that the oil and gas firm should follow the “worldwide agreement” that a 45% net reduction in greenhouse gas emissions by 2030 was necessary to limit the temperature increase to 1.5°C (2.7 Fahrenheit) above pre-industrial levels. The goal was set by an international treaty on climate change, the 2016 Paris Agreement.

The appeals court in The Hague dismissed the entire ruling on Tuesday, saying Shell was already working to reduce its emissions. According to Reuters, the court also stated that it was unclear whether demands to reduce emissions caused by the use of Shell’s products would help the fight against climate change.

In its statement, the British corporation said it remains committed to its target of becoming a net-zero emissions energy business by 2050, and is working towards halving emissions from its operations by 2030.

”The past few years have highlighted the critical importance of secure and affordable energy for economies and people’s lives,” it noted.

Friends of the Earth described the verdict as “a blow to climate justice,” but added that the ruling “will only fuel climate groups’ determination as they continue to challenge big polluters.”

The environmental organization has three months to launch an appeal to the Dutch Supreme Court, which would then take about 18 months to come to a final decision, the Financial Times reported, citing people familiar with the process.

Shell is one of the largest investor-owned oil and gas companies in the world by revenue. According to the Carbon Majors database, the British energy giant has been one of the biggest contributors to greenhouse gas emissions between 2016 and 2023, associated with at least 1% of global emissions.