Shell confirms plans to appeal Dutch court ruling on carbon emissions

The Hague-based LNG giant Shell has confirmed it would lodge an appeal against a Dutch court ruling obliging it to reduce its carbon emissions by 45 percent by 2030.

To remind, the Hague District Court ordered Shell in a ruling in May to reduce its CO2 emissions by 45 percent by 2030 with respect to the level of 2019 for the company and its suppliers but also customers.

Shell to accelerate transition to net zero

Shell said on Tuesday it wants to rise to the challenge of the ruling and accelerate its powering progress strategy to become a net-zero emissions energy business by 2050, in step with society’s progress towards the goal of the Paris Agreement on climate change.

As part of this strategy, Shell had already set its own short- and medium-term targets for cutting carbon emissions.

The firm is working with customers, governments and wider society, sector by sector, to establish “rapid and realistic ways to get to net zero.”

“We agree urgent action is needed and we will accelerate our transition to net zero,” said Shell chief executive, Ben van Beurden.

“But we will appeal because a court judgment, against a single company, is not effective. What is needed is clear, ambitious policies that will drive fundamental change across the whole energy system. Climate change is a challenge that requires both urgent action and an approach that is global, collaborative and encourages coordination between all parties,” he said.

Shell says court did not consider its strategy

Shell published details of its powering progress strategy in April 2021. The court did not consider this because the hearings that led to the ruling took place several months earlier, according to Shell.

Also, in May, Shell became the first energy company to put its energy transition strategy to a vote of shareholders at its annual general meeting. It secured 89% support.

Shell said it would continue to give investors an annual vote on its progress in delivering on its strategy.

Moreover, Shell has set out its intention to reduce both the emissions from its own operations, referred to as Scopes 1 and 2, and those produced when customers use the energy products it sells.

“These Scope 3 emissions account for over 90% of Shell’s emissions, so Shell is working with its customers to achieve this reduction,” it said.

In addition, Shell has already set out a number of actions to reduce Scope 1 and 2 emissions through a combination of energy efficiency improvements, the elimination of routine flaring, carbon capture and storage technology, it said.

This also includes working with suppliers to use renewable electricity in facilities and concentrating its global refining portfolio from 13 Shell-controlled sites in 2019 into five energy and chemicals parks by 2030, Shell said.

“Shell is working on a plan to scale-up and accelerate these efforts within its powering progress strategy,” the firm added.

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