Shell appeals historic climate decision claiming it jeopardizes transition | Climate change

Shell said on Tuesday before a Dutch court that a 2021 order forcing it to drastically reduce greenhouse gas emissions greenhouse effect lacks a legal basis and risks obstructing the fight against climate change.

In 2021, in a historic decision that shocked the energy sector, a first instance court in The Hague ordered Shell to reduce its carbon emissions. carbon responsible for warming the planet by 45% by 2030, compared to 2019 levels. The order concerned not only Shell’s own emissions, but also those caused by its suppliers and customers.

Shell claims, in the appeal, that the application of the decision would force it to reduce its activity and lead customers to choose other fuel suppliers. “This case has no legal basis,” said Shell’s lawyer, Daan Lunsingh Scheurleer, in a court in The Hague, on the first day of hearings in Shell’s appeal against the decision. “It obstructs the role that Shell can and wants to play in the energy transition.”

Drastic measures?

Lawyer Lunsingh Scheurleer argued, before the appeal court, that the energy crisis triggered by the Russian invasion of Ukraine demonstrated the importance of fossil fuels, with governments scrambling to increase imports of liquefied natural gas and spending billions to compensate families for rising energy prices. “Oil and gas will play an important role in both security of supply and affordability during the energy transition,” he said.

The first instance court’s order to reduce total emissions from Shell products by 45% went too far, said Lunsingh Scheurleer, as broader enforcement would harm the Dutch economy. “The general application of this order is impossible without drastic measures,” said the lawyer.

Despite Shell’s objections, the non-governmental organization Friends of the Earth (Milieudefensie, in Dutch) in the Netherlands, which brought the case, said it was confident of the appeal. “The scientific basis upon which we founded our claims against Shell has only solidified,” said the association’s lawyer, Roger Cox, before the hearings. “I am confident that we can once again convince the judges that Shell needs to act in accordance with international agreements on the climate“.

The court has planned four days of hearings for the appeal this month. A verdict is expected in the second half of the year. Regardless of the outcome of this appeal, a new appeal is expected to be filed with the country’s Supreme Court.

Change of route

Shell’s lawyers highlighted the company’s investments in the development of non-fossil fuels, as well as its support for Paris Agreement on Climate and stated that the company’s objectives to reduce its own emissions went further than the court’s decision.

However, earlier this month, Shell weakened one of its carbon emissions reduction targets for 2030 and abandoned a target for 2035, citing expectations of strong gas demand and the uncertainties of the energy transition.

Shell is now targeting a 15-20% reduction in the net carbon intensity of its energy products by 2030, compared to 2016 intensity levels. It previously targeted a 20% reduction. The company reiterated, however, its plan to reduce emissions until reaching climate neutrality in 2050.