Oil giant Shell wins appeal against climate activists in landmark carbon-emissions case

British oil giant Shell won a major court victory on Tuesday when a Dutch appeals court overturned a landmark 2021 case brought by green groups that found the company partially responsible for climate change and ordered it to aggressively slash carbon emissions.

The appeals court in The Hague, where Shell was headquartered until it moved to London in 2022, dismissed the 2021 ruling that ordered Shell to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels – including those caused by the use of its products.

"We are pleased with the court’s decision, which we believe is the right one for the global energy transition, the Netherlands and our company," Shell CEO Wael Sawan said in a statement following the ruling.

Friends of the Earth Netherlands, which brought the Dutch case in 2019, said it would continue its fight against large polluters, but did not say whether it would launch a further appeal at the Netherlands' Supreme Court.

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"Today’s judgment is a setback for us, for the climate movement and for millions the world around who worry about their futures. All our hopes were set on this moment," the group, known as Milieudefensie, wrote on X after the ruling.

"We are feeling the effects of climate change more harshly each day," the group added. "So we won’t stop until all polluters go green. We are confident the victory will be ours in the end."

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Shell said it is still committed to achieving net-zero emissions in its business by 2050, and the company is working to halve emissions from its operations by 2030.

In appeal hearings earlier this year, Shell said demands for companies to reduce emissions could not be made by courts, but only by states.

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The court agreed with Shell that an absolute order to reduce emissions from its products could have an adverse effect worldwide, as it could lead customers to switch from using Shell's gas to more polluting coal.

Reuters contributed to this report.