Shell PLC (LSE:SHEL, NYSE:SHEL) is facing a big day in court as two highly contested legal cases in the UK and Netherlands come to a head.
In Scotland, a legal challenge to the oil giant’s proposed Jackdaw North Sea gas development gets underway.
Environmental groups Greenpeace and Uplift want permission for Jackdaw and also Rosebank, a North Sea oil field being developed by Norway’s Equinor and Britain’s Ithaca, overturned.
The environmental groups say the permission is now unlawful because it did not reflect the emission impact of customers using fuel from the fields, known as scope 3 emissions.
England’s Supreme Court ruled earlier this year that scope 3 emissions had to be considered for any fossil fuel development.
According to the reports today, the two oil companies will accept that approval was unlawful but will try to find ways to move the developments forward possibly by resubmitting their applications.
Approval for both fields was given by the North Sea Transition Authority (NSTA) but environmental groups allege the body ignored oil and gas use by customers.
The government has already stated it will defend any legal action over Rosebank and Jackdaw.
Philip Evans, of Greenpeace UK, said: "Earlier this year, the Supreme Court made it crystal clear that the climate impact of emissions from burning fossil fuels must be assessed before any new oil and gas projects can be approved.
Shell said that the Jackdaw development had been developed in line with all relevant consents and permits.
"Stopping the work is a highly complex process, with significant technical and operational issues now that infrastructure is in place and drilling has started in the North Sea," said a spokesman.
In the Netherlands, judgment is also expected in an appeal by Shell over a 2021 judgment on its carbon reduction programme.
A court in The Hague ruled that Shell must reduce its CO2 emissions by 45% within 10 years from 2019, ie 2030, again with scope 3 emissions crucial to the decision.
The oil company argues while it is on track to reduce its direct scope 1 and 2 emissions within that timeframe emissions from customers (scope 3) are outside its control.
Whatever the outcome today, commentators expect there will be a further referral to the Dutch Supreme Court for a final decision.