Environmental campaigners and oil executives alike are waiting with bated breath for a verdict today in a case in the Netherlands against oil giant Shell that could pave the way for further legal action against fossil fuel producers.
In December, Shell appeared in court in The Hague for a series of hearings in a lawsuit brought by an alliance of environmental organizations claiming that the company is failing to take action in alignment with Paris Agreement targets. Lawyers for the groups claim this is a breach of the firm’s legal duty of care and a violation of human rights.
Led by Friends of the Earth Netherlands and 17,379 Dutch co-plaintiffs, the case is the first of its kind. The outcome could have far-reaching ramifications for the fossil fuel industry globally, opening up the possibility that other fossil fuel producers could be sued for climate inaction. Should Shell be found liable, the firm could be ordered by the court to reduce its greenhouse gas emissions by as much as 45% by 2030 from 2019 levels, a year when it produced some 70 million tons of CO2 equivalent emissions.
Speaking to Forbes.com, Sara Shaw, climate justice and energy international program co-coordinator for Friends of the Earth International, said: “This is a unique case. This is the first time a corporation has been asked to align future policies with the climate goals set out in the Paris Agreement to keep global temperature rise below 1.5 degrees. Other climate cases against fossil fuel companies are about redressing or compensating for damage already caused or for future damage. In this case, we are demanding that Shell takes responsibility for causing climate change, and that it acts to prevent dangerous climate change.”
Shell has consistently argued that the case has no merit. A spokesperson for the company said: “We agree that action is needed now on climate change. What will accelerate the energy transition is effective policy, investment in technology and changing customer behaviour. None of which will be achieved with this court action. Addressing a challenge this big requires a collaborative and global approach and Shell is playing its part. We have set a target to be a net-zero emissions energy business by 2050, or sooner, which means moving in step with society to address our own emissions and help customers to reduce theirs.”
In its Energy Transition Strategy 2021, Shell claimed its emissions peaked in 2018 and that its production of oil peaked in 2019. The firm further drew attention to its investments in renewable energy, from wind and solar to hydrogen electrolysis, and that it has built the largest network of electric vehicle charging points in the U.K.
“While the energy transition brings risks to the company, it also brings opportunities for us to prosper and to build on our positive contribution to society,” Shell chairman Chad Holliday wrote in an introduction to the document. “Our strategy, as outlined in this report, is designed to minimize those risks while enhancing our ability to profitably lead as the world transitions to an energy system that is aligned with the goal of the Paris Agreement.”
None of that, however, will be enough to placate the alliance of environmental campaigners arrayed against the oil major in the Netherlands.
“Shell is currently planning to expand its gas operations by 20% in the next few years, and as we’re seeking this reduction across Shell’s global operations, we’d expect the verdict to have an immediate impact on its investments and plans,” Shaw said, before making it clear that Friends of the Earth are hoping a victory against Shell will set a legal precedent for other suits against oil firms.
“This would be a landslide victory for climate justice,” Shaw said. “Shell would be forced to drastically cut their emissions globally. Our hope is that a verdict in Friends of the Earth’s favor will trigger a wave of climate litigation against big polluters, to force them to stop extracting and burning fossil fuels. This result would also be a huge win for communities in the global South who face devastating climate impacts now.”
Shell did not comment on what the implications for the company would be if it loses the case.
The verdict is due today at 3 p.m. Central European Time.