In 2021, a Dutch court issued a decision in favor of Friends of the Earth Netherlands that shook the ESG world. For the first time, a court found that a fossil fuel company owed a duty to reduce CO2 emissions. The court required Shell to cut emissions by 45% by 2030 compared to 2019 levels. This decision kicked off similar climate litigation globally as other litigants tried to emulate the plaintiff’s success. However, in 2024, that landmark case was overruled by an appeals court. As a result of the case, Shell reincorporated in the UK and largely ignored the court’s order. The case is in the appellate process as the Dutch Supreme Court considers the issue. Friends of the Earth Netherlands isn’t letting this delay stop them. The NGO has announced a second suit against Shell, which picks up where the last one left off. They state in a press release:
“The second climate case against Shell builds on the first one. In this new case, Milieudefensie is demanding that Shell must progressively reduce its emissions with targets set for 2035, 2040 and 2050. After all, Shell still does not have adequate climate targets: not for 2030 and not for the years beyond. This means that Shell has no concrete plan to bring its emissions to net zero by 2050. Shell’s current policy makes it clear that the emissions from its oil and gas production will not be drastically lower in 2030, as is necessary, but may even rise. Stopping investment in new oil and gas fields is a prerequisite for achieving the climate targets.”
Where the first case only challenged 2030 emissions levels, the new one carries targets through 2050. Plaintiffs additionally argue that Shell’s reincorporation does not affect their standing. The success of the second case is likely to hinge on the outcome of the first. Should the Dutch Supreme Court rule in favor of Friends of the Earth, then it’s easy to see how that precedent could be extrapolated over a 20-year timeframe. However, if the Court finds for Shell, then the second case will likely meet the same fate.
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