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Article

12 Nov 2024

Author:
Bart Meijer & Stephanie van den Berg, Reuters

Highlights from ruling in Shell's climate case

A Dutch appeals court on Tuesday dismissed a landmark 2021 ruling, ordering oil and gas giant Shell (SHEL.L), opens new tab to accelerate carbon reduction efforts that was seen as a turning point in climate litigation.

Here are the main parts of the verdict and reaction.

Shell is obliged to reduce co2 Emissions

The court said protection against global warming is a basic human right, which also means companies such as Shell have an obligation to reduce their greenhouse gas emissions.

It also said that courts can order companies to accelerate climate policies, even if targets for them are not specifically set in international treaties or national law...

Shell is not at risk of missing targets for its emissions

The court said reductions in Shell's direct emissions (known as Scope 1 and 2) are in line with the demands made by climate activists in the court case...

General targets are not helpful, court says

The court agreed with Shell that an absolute order to reduce Scope 3 emissions could have an adverse effect, as it could lead to customers switching from using Shell's gas to more polluting coal...

No specific target can be set

The court said it had not been able to determine a fitting reduction target for oil and gas companies, based on science and available data...

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