Climate change campaigners Milieudefensie's director Donald Pols addresses the media upon exiting the courthouse in The Hague on Tuesday, following a Dutch court's decision against an appeal by climate groups who argued that oil giant Shell was not doing enough to reduce its greenhouse gas emissions. This ruling overturns a significant judgment from three years ago.
CORRECTION / A climate activist holds a placard during a demonstration outside ExCeL in London, coinciding with the multinational oil and gas company Shell's Annual General Meeting (AGM) on May 23, 2023. (Photo by Daniel LEAL / AFP)
On Tuesday, Dutch judges dismissed the claims of climate groups who accused Shell of insufficient action to curb its greenhouse gas emissions, thereby reversing a landmark decision from three years prior. The Appeals Court's ruling, which came as a shock to environmental organizations, including Milieudefensie, which spearheaded the case, nullified the earlier verdict.
In that earlier ruling, a lower Dutch court had mandated that Shell must cut its carbon emissions by 45% by 2030, acknowledging its role in exacerbating the dire consequences of climate change. Both Shell and environmental groups appealed the decision, with Shell contesting the ruling itself and climate activists asserting that the oil company was not adequately implementing the court's directives.
However, on Tuesday, Appeals Court judge Carla Joustra declared: "The court's final judgment is that Milieudefensie's claims cannot be granted. The Appeals Court is therefore quashing the original judgment." This ruling by the Hague Appeals Court coincides with the COP29 talks in Azerbaijan, where representatives from around 200 countries are convening to discuss climate action and the transition to clean energy.
The 2021 ruling was heralded as a historic triumph for climate change campaigners, including Milieudefensie—the Dutch branch of Friends of the Earth—and six other groups that initiated the legal action. It marked the first instance where a company was compelled to align its policies with the 2015 Paris climate change accords.
Nevertheless, the Appeals Court judges disagreed with the climate groups, stating: "Shell is already doing what is expected" of them. Judge Joustra clarified that while Shell must contribute appropriately to the climate objectives of the Paris Agreement, existing climate legislation does not prescribe a specific reduction percentage for individual companies. She emphasized that although Shell, as a major oil and gas company, bears the responsibility to mitigate climate change, predominantly driven by industrialized nations, this does not entitle the court to impose the general standard of a 45% reduction on Shell.
Milieudefensie expressed its disappointment. "This judgment is painful," said Milieudefensie director Donald Pols. "We will continue to hold major polluters like Shell accountable," Pols added. Shell, which has previously characterized litigation as an ineffective means to address climate change, welcomed the court's decision. "We do not believe that a court decision against a company is the right solution for the energy transition," the company stated on its website. Shell CEO Wael Sawan echoed this sentiment in a separate statement, expressing satisfaction with the court's decision, which he deemed appropriate for the global energy transition, the Netherlands, and the company.
Tuesday's ruling concludes four days of hearings in April, during which Shell and environmental groups presented their arguments to the judges. Milieudefensie had anticipated that the judgment could be a turning point for the climate. "For years, we've been pressuring Shell and other large-scale polluters who are doing too little for the climate," the group stated on its website. "If they don't take action, we won't be able to halt climate change." Shell has disclosed plans to invest between $10 to $15 billion from 2023-25 in low-carbon energy solutions, accounting for 23% of its total capital expenditure. The 2015 Paris accords obligated all nations to reduce carbon emissions to limit global warming to 2 degrees Celsius above pre-industrial levels, with an aspiration to keep it below 1.5 degrees.
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