Milieudefensie, the Netherlands arm of the environmental group Friends of the Earth, is pushing for a tougher interpretation of a 2021 Dutch court ruling that ordered Shell [SHEL:US] to cut its carbon emissions, as reported by Bloomberg on April 12. At the Friday hearing in The Hague, Shell’s lawyers appealed against a2021 judgment compelling the company to slash its emissions by 45% by 2030 from 2019 levels. Thelawyers argued that the order had no legal basis and exceeded judicial authority. Conversely, Roger Cox, the lawyer representing Milieudefensie, contended that Shell should not be allowed to simply sell its oil and gas assets to comply with the 2021 order. Cox also suggested that Shell be prevented from using carbon capture and storage to achieve the carbon reduction target.

Milieudefensie claimed that Shell’s selling of fossil fuel assets could transfer them to smaller companies with less public oversight, potentially leading to even more pollution. On the other hand, Shell asserted that the 2021 mandate would be ineffective and counterproductive, as it would increase energy costs for consumers. The final ruling on the case could set a precedent for futurelawsuits against major oil and gas corporations, many of which have weakened their carbon reductioncommitments and reverted focus to fossil fuels amid spiking energy prices in the past few years. A verdict is expected in the second half of the year, while whoever loses the appeal can take the case to the Dutch Supreme Court.

Sources :

https://www.bloomberg.com/news/articles/2024-04-12/shell-climate-appeal-sees-dutch-group-push-for-tougher-rules

https://www.theguardian.com/environment/2024/apr/12/shell-says-it-lobbies-for-energy-transition-during-climate-ruling-appeal

https://www.bloomberg.com/news/articles/2024-04-02/shell-says-support-for-the-energy-shift-will-wane-if-prices-soar

https://www.ft.com/content/ac1623a4-d87a-4ad5-9328-59c09f381a8f