Shell PLC's (LSE:SHEL, NYSE:SHEL) next round in its battle with Dutch environmentalists concludes on Tuesday when the verdict on its appeal against the 2021 ruling is announced.
The Anglo-Dutch giant was stunned when it lost the original case, which has been cited though not confirmed as a reason for its domicile shift from its traditional home of the Netherlands to the UK.
A court in The Hague ruled that Shell must reduce its CO2 emissions by 45% within 10 years from 2019, ie 2030.
At the time, Donald Pols, director of Friends of the Earth Netherlands said: "This is a monumental victory for our planet, for our children and a big leap towards a livable future for everyone.
“The judge has left no room for doubt: Shell is causing dangerous climate change and must stop its destructive behaviour now."
Shell disagreed, arguing that its carbon reduction programme was on course to reduce its direct phase 1 and 2 emissions by 2030 while adding that emissions from customers (scope 3) were outside its control.
"It's not clear how can Shell be ordered to reduce carbon emissions we do not control from customers who are not under a similar legal obligation to reduce their emissions," the oil giant said.
The appeal decision is scheduled to be announced on Tuesday 12 November.
Milieudefensie, a combination of six environmental groups that brought the action, said that Tuesday’s verdict would hold Shell to account in several areas.
Namely, Is Shell a contributor to dangerous climate change? Is Shell putting human lives at risk? Can Shell be held responsible for its Scope 3 emissions? And does Shell have a duty to reduce its CO2 emissions? And if so, by how much?
But if either side objects to the ruling there is an option to go to a final appeal to the Dutch Supreme Court and broker Jefferies sees this as being the inevitable outcome on Tuesday whatever the court’s decision.
Shares in Shell were up 0.7% at 2,611p or close to double the level of the original judgement in May 2021.