This Tuesday, April 2, Shell begins an appeal against a 2021 ruling, in the face of class action by seven Dutch environmental NGOs, including Friends of the Earth and Greenpeace. These organizations are questioning Shell’s compliance with a court ruling requiring it to reduce its greenhouse gas emissions by 45% by 2030 compared with 2019 levels. This ruling by the court in The Hague represents a groundbreaking case for aligning corporate activities with the objectives of the Paris Climate Agreement. For its part, Shell took Greenpeace to court at the end of 2023, claiming $2.1 million in damages.
Legal action: “The People vs. Shell
Initiated in April 2019, this legal action, entitled “People against Shell”, has seen more than 17,000 Dutch citizens join as civil parties. The ruling was hailed as a world first, forcing a company to align itself with the 2015 Paris Agreement. Shell immediately announced its intention to appeal, arguing that there was no legal basis for the NGOs’ claims.
Shell: Contested investments
Despite the appeal, a recent study points to Shell’s plans to invest billions in oil and gas for decades to come. Milieudefensie accuses Shell of lowering its climate ambitions, going against its responsibilities in the climate crisis. The study, carried out by Milieudefensie and Oil Change International, highlights Shell’s approval of twenty major oil and gas projects, including six in 2023.
Shell’s defense
Shell refutes the accusation of ignorance of the 2021 ruling, pointing to its 2030 deadline for implementation. The Group plans to invest between $10 and $15 billion in low-carbon energy solutions by 2025, representing 23% of its capital expenditure. Shell says it shares the objective of combating climate change, but differs on the methods for achieving it. Shell warns of the repercussions of a confirmation of the 2021 ruling, notably on Dutch companies, employment and the investment climate in the Netherlands. The group describes the verdict as “ineffective and counter-productive” in the fight against climate change.
Shell’s appeal against the ruling ordering a drastic reduction in its CO2 emissions sets a legal and environmental precedent. With far-reaching implications for the energy sector and global climate policy, this case tests the limits of corporate responsibility in the era of the Paris Agreement.
