AMSTERDAM (Reuters) – A Dutch appeals court on Tuesday dismissed a landmark 2021 ruling, ordering oil and gas giant Shell to accelerate carbon reduction efforts that was seen as a turning point in climate litigation.
Here are the main parts of the verdict and reaction.
SHELL IS OBLIGED TO REDUCE CO2 EMISSIONS
The court said protection against global warming is a basic human right, which also means companies such as Shell have an obligation to reduce their greenhouse gas emissions.
It also said that courts can order companies to accelerate climate policies, even if targets for them are not specifically set in international treaties or national law.
“Products from companies like Shell have caused the climate problem. These companies have a human rights obligation to everyone in the world to reduce their CO2 emissions,” Presiding Judge Carla Joustra said.
SHELL IS NOT AT RISK OF MISSING TARGETS FOR ITS EMISSIONS
The court said reductions in Shell’s direct emissions (known as Scope 1 and 2) are in line with the demands made by climate activists in the court case.
The original 2021 ruling ordered Shell to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels, including those caused by the use of its products (known as Scope 3).
The court said documents had shown emissions from Shell’s own production process were 31% below 2016 levels last year, and added that Shell targets a 50% reduction by 2030.
GENERAL TARGETS ARE NOT HELPFUL, COURT SAYS
The court agreed with Shell that an absolute order to reduce Scope 3 emissions could have an adverse effect, as it could lead to customers switching from using Shell’s gas to more polluting coal.
And if Shell would start selling gas to a customer that moves away from coal, that would increase Shell’s Scope 3 emissions but would lower emissions worldwide.
“In general, any reduction in greenhouse gas emissions is positive to mitigate climate change,” Joustra said. “But that does not mean that a reduction order for Shell has that same effect.”
NO SPECIFIC TARGET CAN BE SET
The court said it had not been able to determine a fitting reduction target for oil and gas companies, based on science and available data.
“The percentages mentioned in reports are so wide-ranging, that a civil court cannot determine to what reduction target Shell should be held,” Joustra said.
“Available data do not give enough information to force Shell to reduce its emissions with a certain percentage in 2030.”
FRIENDS OF THE EARTH NETHERLANDS DIRECTOR DONALD POLS:
