Shell wins appeal against Dutch climate cuts ruling | Wilnesh News

A Dutch court on Tuesday threw out a landmark climate ruling shellafter the oil giant was ordered to significantly reduce global carbon emissions in 2021.

The results came on the opening day of the conference COP29 climate summit In Azerbaijan, it marks the latest twist in a precedent-setting case that could have far-reaching consequences for the future of climate litigation.

The Hague Court of Appeal said that while Shell was required to reduce carbon emissions, it could not determine the extent of the cuts. As a result, the case against Shell was dismissed in its entirety.

In May 2021, the District Court of The Hague ruled that Shell must reduce greenhouse gas emissions by 45% in 2030 compared with 2019 levels.

The ruling, which comes as Shell is headquartered in The Hague, also said the company was responsible for all emissions in its value chain, including emissions from the products it sells – so-called “Scope 3” emissions.

This is the first time in history that a company has been found to be legally obliged to align its policies with the Paris Agreement, a framework that aims to limit increases in global average temperatures to between 1.5 and 2 degrees Celsius.

The ruling was seen as a watershed moment in the climate fight and triggered a wave of lawsuits against other fossil fuel companies.

The case was brought against Shell in 2019 by environmental campaign groups Milieudefensie and the Dutch chapter of Friends of the Earth, along with six other institutions and more than 17,000 Dutch citizens.

An appeal against Tuesday’s results could still be filed with the Dutch Supreme Court, although Milieudefensie has not yet said whether it plans to appeal.

“The Court of Appeal dismissed Milieudefensie’s claim because it was unable to establish that Shell was obliged to reduce CO2 emissions by 45% or some other percentage of the Social Care Standard,” the court said in a statement.

Furthermore, the court said it considered Shell’s obligation to significantly reduce its Scope 3 emissions by a specified percentage to be “invalid” because other companies could step in and take over the trade “and therefore this would not result in a reduction in CO2 emissions”. emission.

Shell welcomed the decision to overturn the 2021 verdict.

“We are pleased with the court’s ruling, which we believe is right for the global energy transition, the Netherlands and our company,” Shell Chief Executive Wael Sawan said in a statement.

“Our ambition to become a net-zero emissions energy company by 2050 remains at the heart of Shell’s strategy and is transforming our business,” he added.

Affected by this news, the share price of Shell, which is listed in London, fell slightly.

Shell appeals 2021 decision, then It moved its headquarters to the UK, a move that was criticized in part because of the court defeat. Decisions of the District Court of The Hague are only legally binding in the Netherlands.

Lawyers for Shell say demands for the company to limit greenhouse gas emissions cannot come from the courts, but only from governments. Reuters reports. The company also said the court ruling would force it to scale back operations, which would do nothing to combat climate change.

The combustion of coal, oil and natural gas is Biggest contributor to date The climate crisis accounts for more than three-quarters of global greenhouse gas emissions.

“This ruling has profound consequences for us,” Milieudefensie director Donald Pols said in a statement.

“This is a setback for us, the climate movement and millions of worried people around the world. But anyone who knows us even remotely knows we will never give up,” Boles said.

“It’s encouraging that the judge found that Shell has a duty to reduce emissions and that the company must respect human rights. This is a marathon, not a sprint, and the race is not over yet,” he added.