Shell has won an appeal against a 2021 ruling that ordered the supermajor to reduce its carbon footprint by 45%.
The appeals court, which was heard in The Hague, Netherlands, found that Shell did have a responsibility to cut emissions, but not by a stipulated amount.
The 2021 ruling had found that Shell should slash emissions by 45% by 2030, compared to 2019 levels.
The court said Shell was already on track to meet its own emission reduction targets and it was uncertain if demands that it further reduce emissions caused by the use of its products would help the battle against climate change.
“There is currently insufficient consensus in climate science on a specific reduction percentage to which an individual company like Shell should adhere,” the court said.
Big oil and climate pressure
Investors took action in 2021 to force “big oil’ to clean up its act, as top management at Exxon Mobil and Chevron got a shakeup and a Dutch court ruled that Shell must cut its carbon emissions.
Shell’s chief executive officer, Wael Sawan, welcomed the ruling.
“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,” he said.
“Our target to become a net-zero emissions energy business by 2050 remains at the heart of Shell’s strategy and is transforming our business.”
The ruling came at a time that the COP29 UN climate summit was being held in Baku, Azerbaijan, where the continued use of fossil fuels was hotly debated.
The case in the Hague – where Shell was headquartered until it completed its move to London in 2022 – was viewed as critical for both sides of the emissions divide fence.
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26/07/2021
