
Energy giant Shell has said it welcomes a ruling from the Dutch Court of Appeal overturning a previous ruling about the pace of its emissions reduction.
The District Court of The Hague issued a ruling in 2021 that Shell plc needed to decrease its carbon emissions around the world – including Scopes 1 to 3 – by 45% compared to its 2019 levels by the end of this decade.
Scope 1 emissions required a “results-based” obligation, while Scopes 2 and 3 required “significant best efforts”.
Shell’s argument has been that the ruling would not reduce the demand for oil and gas, so customers would simply seek alternative sources for these fuels.
Wael Sawan, the Chief Executive Officer of Shell, said the company was happy with the decision, which he said was appropriate for the world’s transition to clean energy. He added:
“Our target to become a net-zero emissions energy business by 2050 remains at the heart of Shell’s strategy and is transforming our business. This includes continuing our work to halve emissions from our operations by 2030. We are making good progress in our strategy to deliver more value with less emissions.”
Shell, which also makes lubricant and grease products, says its investments in low-carbon technologies was $5.6 billion last year – almost a quarter of its capital spending. It also intends to invest $10-15 billion in the energy transition between 2023 and 2025.
Shell also points out that it is leading the industry in decreasing methane emissions, having achieved a 70% reduction between 2016 and the end of 2023.