Shell No Longer Required to Cut Emissions by 45% After Winning Appeal in Dutch Court Ruling

Regardless, Shell still aims for net-zero emissions by 2050.

By Thea Felicity

Nov 12 2024, 08:32 AM EST

Royal Dutch Shell Reports Worst Quarterly Loss Since 2005 — SAN RAFAEL, CALIFORNIA - JULY 30: The Shell logo is displayed in front of a Shell gas station on July 30, 2020 in San Rafael, California. Royal Dutch Shell reported second quarter adjusted earnings of $638 million compared to a net profit of $3.5 billion one year earlier. Justin Sullivan/Getty Images

After a historic 2021 ruling that mandates Shell to take responsibility for its direct emissions, the Dutch court is reversing this directive.

By overturning the major climate ruling, Shell will no longer have to abide by the law to cut its emissions by 45% by 2030, defacing the 2021 judgment from The Hague district.

According to CNBC, the ruling made 3 years ago was the first time a company was legally required to align its climate policies with the Paris Agreement, and therefore, a win for climate activities. However, Shell's successful appeal is turning the clock around.

The Dutch appeals court noted that while Shell is responsible for cutting emissions, setting an exact percentage reduction would be ineffective. They also argued that even if Shell managed to reduce emissions, other companies would step in to fill the gap, leading to no real drop in global emissions.

Environmental Groups on Overturned Shell Ruling

Overturning the 2021 ruling came during the COP29 climate summit, where global leaders discussed actions to address climate change. Environmental groups and climate protestors, including Milieudefensie (Friends of the Earth Netherlands), were disappointed with the latest ruling but indicated that it may consider further appeals to hole big companies with massive carbon footprints.

In an official announcement, Shell warmly welcomed the court's decision with CEO Wael Sawan noting that the ruling also supports its strategy to transition into a net-zero emissions business by 2050.

Shell also maintained that governments, not courts, should set policies for corporate emissions and argued that reducing their operations by the said deadline would not benefit the global climate movement, echoing the Dutch court's statement.

For climate campaigners, it's a major setback in their fight to hold corporations accountable for their emissions. However, some described it as a marathon, and not a sprint, meaning more pushing will be expected after taking action on corporate responsibility during this climate crisis.