Dutch court’s landmark Royal Dutch Shell decision mandates greater, more rapid carbon emission cuts

A landmark decision handed down by a court in The Hague, Netherlands on Wednesday mandates that energy giant must reduce carbon emissions by 45 percent until 2030, compared to 2019 levels.

The figure cited by the court is more than double the target set by the multinational, which aimed at a 20-percent reduction in 2030, compared to 2019.

The 45-percent target for reduced CO2 emissions had been set by Royal Dutch Shell for 2035, but is now brought up five years by the court.

The decision has sent reverberations around the global corporate world, as companies must announce targets to meet the Paris Agreement, itself a framework for implementing actions and reforms to avoid irrevocable climate change.

The Dutch multinational has previously pledged to transform itself into a net-zero emissions operation by 2050.

The case brought by the NGO Friends of the Earth and included more than 17,000 co-plaintiffs.

While the Anglo-Dutch giant was not found in breach of any law, the court ruled that the oil giant’s sustainability policies were not “concrete” enough, and was told that its vertical line of suppliers and buyers must also meet Paris Agreement targets.

Shell’s attorney argued that there was no legal basis for the litigation and that national governments are solely responsible for meeting Paris climate agreement targets.

Conversely, the court stated that “since 2012 there has been broad international consensus about the need for non-state action, because states cannot tackle the climate issue on their own”.

In a later statement, a Shell spokesperson said:

“Urgent action is needed on climate change which is why we have accelerated our efforts to become a net-zero emissions energy company by 2050, in step with society, with short-term targets to track our progress.

“We are investing billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and bio-fuels. We want to grow demand for these products and scale up our new energy businesses even more quickly. We will continue to focus on these efforts and fully expect to appeal today’s disappointing court decision.”