The Hague Court of Appeal has overturned a landmark ruling that ordered the energy giant Shell to reduce its carbon emissions.
The Hague District Court handed down a ruling in 2021 requiring Shell to reduce its greenhouse gas emissions by 45 per cent by the end of 2030 and to zero by 2050.
It ruled that Shell has an obligation towards citizens to limit its CO2 emissions to protect them from the dangerous impacts of climate change.
The claim was launched by several non-governmental organisations, including the Dutch branch of Friends of the Earth, Milieudefensie.
It was the first time a court imposed such a mandate on an energy company, and the judgment is said to have inspired many other similar claims.
But Shell appealed the decision, and today the Court of Appeal overturned the lower court’s ruling.
The court stated that there is currently insufficient consensus in climate science on a specific reduction percentage to which an individual company like Shell should adhere.
“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,” Wael Sawan, Shell’s chief executive, said following the ruling today.
He added: “As Shell has stated previously, a court ruling would not reduce overall customer demand for products such as petrol and diesel for cars, or for gas to heat and power homes and businesses. It would do little to reduce emissions, as customers would take their business elsewhere.
“We believe that smart policies from governments, along with investment and action across all sectors, will drive the progress towards net-zero emissions that we all want to see.”
It is unclear if Milieudefensie will appeal the decision.
Donald Pols, director of Milieudefensie said: “We are shocked by today’s judgment. It is a setback for us, for the climate movement and for millions of people around the world who worry about their future. But if there’s one thing to know about us, it’s that we don’t give up.”
“This setback will only help us grow stronger. Large polluters are powerful. But united, we as people have the power to change them,” he added.