(Bloomberg) — Shell Plc won an appeal at a Dutch court overturning a historic 2021 ruling ordering it reduce its greenhouse gas emissions faster than originally planned.
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Shell has a duty to slash emissions but it’s already doing so and there is no firm conclusion on what percentage reduction should apply to oil and gas companies, judges ruled at a verdict in The Hague on Tuesday.
A lower court ruled that Shell must reduce emissions by 45% by 2030 from 2019 levels. The case against Shell was brought by local environmental group MilieuDefensie.
“It is not possible to determine what percentage Shell must adhere to,” the judges said in their verdict. “Some sectors are more difficult to make sustainable than others.”
The case can be appealed to the Dutch Supreme Court.
In 2021, the Dutch court ordered Shell to reduce three types of carbon emissions. Scope 1, which come direct from their own operations, scope 2, which come from the energy they use, and scope 3, from their supply chain and customers. The vast majority of Shell’s emissions, around 90%, fall into the third category. The court imposed a “significant best efforts” obligation for scopes 2 and 3.
The higher court rejected reduction enforcement for all three scopes.
Earlier this year, Shell said the previous ruling had no legal basis and it could have disastrous consequences for the energy transition. The company has argued that it is up to the government to take action against climate change and not the court.
–With assistance from William Mathis.
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