A Dutch court has overturned a ruling that ordered oil giant Shell to meet specific goals for cutting its carbon emissions.
In 2019, environmental group Friends of the Earth Netherlands, along with over 17,000 Dutch citizens sued Shell, one of the world’s biggest oil and gas companies.
They argued that Shell's activities contribute to climate change and asked the company to reduce its emissions significantly.
After a long legal battle, the court passed a “landmark” ruling in 2021 ordering Shell to reduce its carbon emissions, including those caused by its products, by 45% by 2030, compared to 2019 levels
This was the first time a court had ordered a private company to follow the international climate goals set by the Paris Agreement, according to BBC.
However, Shell decided to appeal the ruling.
During appeal hearings held in April 2024, Shell argued that it was "unfair" to target just one company and "unrealistic" to hold it responsible for its customers’ choices.
Shell also said that only governments, not courts, can order companies to reduce emissions, according to Reuters.
The environmental group countered the argument, saying that Shell is a major contributor to climate change and should also be held accountable for its emissions
The group also pointed out Shell has continued to invest in new oil and gas projects, which contradicts the court’s previous orders and worsens the climate crisis.
On Tuesday, Nov. 12, the court issued a new ruling, saying that while Shell should work to reduce emissions, it is “not obliged” to meet specific reduction targets
The court added that Shell is already making efforts to reduce carbon emissions and it couldn’t decide if Shell should cut emissions by a specific percentage because climate science doesn't specify an exact reduction number for companies, according to the BBC.
The court added that even if Shell cuts its emissions, it might not lower overall emissions because consumers could buy similar products from other companies, Reuters reported.
Shell said it was "pleased" with the ruling and is committed to net-zero emissions by 2050.
It had announced in March it planned to reduce emissions from its oil products, like gasoline and diesel, by 15 to 20% by 2030 compared to 2021, which is lower than its previous goal of 20%.
Friends of the Earth said it was disappointed with the verdict but that it would continue fighting against “large polluters” because “they are not above the law.”
Climate and legal experts have called the verdict an “empty victory” for Shell as the court rejected most of its arguments and still holds it responsible for reducing emissions, adding that the ruling may open the way for more lawsuits against major fossil fuel producers.