On Wednesday, 26 May, history was written. For the first time ever, a Dutch court ruled oil giant Royal Dutch Shell must reduce its carbon emissions by 45% by 2030 from 2019 levels, that’s more than double what the oil company had planned to cut.
The lawsuit was filed in April 2019 by seven activist groups — including Friends of the Earth and Greenpeace — on behalf of 17,200 Dutch citizens. Court summons claimed Shell’s business model “is endangering human rights and lives” by posing a threat to the goals laid out in the Paris Agreement. While Shell claims that its carbon intensity targets are aligned with the Paris Agreement, Friends of the Earth Netherlands debated that the oil giant’s ongoing investments into oil and gas extraction show it doesn’t take climate change seriously.
After the Paris Agreement in 2015, nations were urged to limit warming to “well below” 2ºC and “pursue efforts” for 1.5ºC. For a 50% chance of success, carbon budgets for 1.5ºC and 1.75ºC, irrespective of the trajectory taken, equate to 13 and 24 years at current CO2 emissions levels.
The landmark ruling comes at a time when the world’s largest corporate emitters are under immense pressure to set short, medium and long-term emissions targets that are consistent with the international climate targets that aim to a zero-carbon shipping future and a more green and sustainable environment. The climate accord is widely recognized as critically important to avoid an irreversible climate crisis.
Shell’s current climate strategy states that the company is aiming to become a net-zero emissions business by 2050, with the company setting a target of cutting its CO2 emissions by 20% by 2030.
“We are investing billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels,” the spokesperson said via email. “We want to grow demand for these products and scale up our new energy businesses even more quickly,” said a spokesperson for Shell.
Roger Cox, a lawyer for environmental activists in the case, said in a statement that the ruling marked “a turning point in history” and could have major consequences for other big polluters.
Meanwhile, Sara Shaw, Friends of the Earth’s international program coordinator for climate justice and energy, said the organisation hoped the verdict would “trigger a wave of climate litigation against big polluters to force them to stop extracting and burning fossil fuels.”
Mark van Baal, founder of Dutch group Follow This, told CNBC via email that the judge’s ruling shows “Big Oil can no longer dismiss the crucial role it has to play in the fight against climate change.”
