A Dutch court on May 26 ordered Shell to deepen its planned carbon emission cuts in a ruling that could prompt legal action against energy companies across the globe. Shell said it would appeal the “disappointing” ruling, which came as investors, activists, and governments stepped up pressure on energy producers to shift away from fossil fuels and ramp up investments in renewables. The court in The Hague ordered Shell to cut its greenhouse gas emission by 45% by 2030 from 2019 levels.
Earlier this year, the Anglo-Dutch company announced targets to reduce emissions by at least 6% by 2023, by 20% by 2030, by 45% by 2035 and by 100% by 2050 from 2016 levels. Shell’s emission reduction target is one of the most ambitious in the energy sector. However, the court said it was not enough, not concrete, and full of conditions. Shell’s emission target is intensity-based which will still allow it to expand hydrocarbon output. Meanwhile, the court’s ruling orders Shell to cut emissions on an absolute basis.
The lawsuit was filed in April 2019 by environmental groups including Friends of the Earth Netherlands and Greenpeace. It marks environmentalists’ first foray to courts to force a major energy producer to revise strategy. The lawsuit was filed on behalf of 17,000 Dutch citizens who said Shell’s continued investment in fossil fuel production threatened human rights.
