Shell PLC (LSE:SHEL, NYSE:SHEL) has hailed its victory in overturning a landmark ruling requiring the oil giant to slash emissions.
The Court of Appeal in the Netherlands on Tuesday overturned a 2021 district court decision which had ordered Shell to cut carbon emissions by 45% come 2030, including those produced through use of its fuel, known as scope three.
“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,” Shell boss Wael Sawan said.
Shell added another ruling against it would likely see customers turn to fossil fuels from elsewhere and that it believed government policies would drive progress to net-zero.
Friends of the Earth Netherlands, which bought the initial case alongside other environmental organisations, said it was “shocked” by the judgement.
“It is a setback for us, for the climate movement and for millions of people around the world who worry about their future,” director of the group, Donald Pols, said.
“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.”
The group also noted that judges acknowledged Shell’s non-legal responsibility to reduce emissions to limit climate change, protection from climate change was a “fundamental human right” and that new oil exploration was “at odds” with the Paris Agreement.
Friends of the Earth could now take Shell to the Supreme Court, though a final ruling would likely take several years.