Environmental group Friends of the Earth Netherlands (Milieudefensie) announced that it is preparing to launch a new climate case against Shell, and has sent a letter notifying the energy giant of its plans to launch legal proceedings demanding that the company stops drilling for new oil and gas fields and be given court-imposed CO2 emissions reduction targets.
In a statement provided to ESG Today by Shell, the company acknowledged receiving the letter, but stated that the organization’s demands “will not advance the energy transition.”
Shell added:
“As the world continues to use oil and gas to heat homes and to transport goods and people, the transition needs collaboration between governments, businesses and consumers. By working together, with effective government policies, the world can move to low-carbon products and maintain a secure supply of affordable energy.”
The new case follows a previous suit in the Netherlands by Milieudefensie against Shell in 2019, arguing that Shell was in breach of its legal duty of care under Dutch law due to its impact on climate change, and that the company was undermining the ambitions of the Paris Agreement to limit average temperature rise to well below 2˚C, and to pursue efforts to limit to 1.5˚C.
In a 2021 ruling, the court held Shell responsible for greenhouse gas emissions resulting from its customers’ use of its products and ordered Shell to slash emissions by 45% by 2030, on a 2019 basis, including its Scope 1, 2 and 3 emissions. In 2024, however, an appeals court reversed the ruling, finding that sufficient scientific evidence does not currently exist to support a specific emissions reduction requirement such as the 45% ruling, and agreeing with an argument by Shell that mandating a requirement from the company to reduce emissions caused by the use of its products by customers would not be effective in cutting emissions, as it would require Shell to stop selling fuels, while customers would continue to purchase those fuels from other suppliers.
The appeals court did acknowledge, however, that “fossil fuel consumption is largely responsible for creating the climate problem and that addressing climate change is something that cannot wait,” adding that “companies like Shell, which contribute significantly to the climate problem and have it within their power to contribute to combating it, have an obligation to limit CO2 emissions in order to counter dangerous climate change.”
According to Milieudefensie, its new proposed case marks the first ever attempt at legally banning a company from all new oil and gas extraction. In its letter, the organization again referred to Shell’s duty of care to help prevent climate change, and noted that while the appeals court “fell short of determining a specific reduction percentage to apply to Shell,” the ruling left it up to Shell to fulfil its legal obligation, adding that “Shell’s recent policy announcements and actions show it has no intention to change course and fulfil its legal obligation.”
Milieudefensie said that its new case “will focus strongly on obtaining a court order requiring Shell to stop its investments in new oil and gas fields,” noting a “a growing recognition in recent years that it will not be possible to achieve the global climate goals without ceasing investments in new oil and gas fields.” The organization added that it will “seek reduction orders for Paris-aligned Scope 1, 2 and 3-emissions reductions for 2035 and beyond,” based on findings of organizations such as the IPCC and the IEA’s NZE-scenario which it said “provide a solid foundation for determining Shell’s responsibility in limiting global warming to 1.5°C.”
In a statement announcing its plans for the new case, Milieudefensie said:
“The science is clear: if we are to stay within planetary boundaries, there is no room for any new oil and gas exploration. Even if we only extract fuels from existing fields, our planet will greatly overshoot the 1.5 degrees limit. The court confirms: the opening of new oil and gas fields is at odds with the Paris Climate Agreement. And yet, Shell owns 700 new oil and gas fields worldwide, which the company could start exploiting whenever they please.”
