The cyclist passed the oil silos at the Royal Dutch Shell Pernis refinery in Rotterdam, the Netherlands, on Tuesday, April 27, 2021.
Peter Boer | Bloomberg | Getty Images
LONDON – A Dutch court ruled on Wednesday that the oil giant Royal Dutch Shell must reduce carbon emissions by 45% by 2030 compared to 2019 levels.
This is a much larger reduction than the company’s current goal of reducing emissions by 20% by 2030.
The turning point comes at a time when the world’s largest corporate broadcasters are under enormous pressure to set short-, medium- and long-term emission targets that are in line with the Paris Agreement. The climate agreement is widely recognized as critical to avoiding an irreversible climate crisis.
Shell is electricity climate strategy states that the company aims to become a zero-emission business by 2050, with the company setting a goal of reducing its CO2 emissions by 45% by 2035.
CNBC contacted Shell to request comment on the verdict.
Shares of Shell traded in London 0.3% lower. The stock price has risen by almost 10% to date, falling by almost 40% in 2020.
The lawsuit was filed in April 2019 by seven activist groups – including Friends of the Earth and Greenpeace – on behalf of 17,200 Dutch citizens. Request for summons Shellthe business model “endangers human rights and lives” by threatening the goals set in the Paris Agreement.
Under the Paris Agreement – an agreement adopted in 2015 signed by 195 countries – countries agreed on a framework that prevents global temperatures from rising by more than 2 degrees Celsius, although the agreement aims to prevent global temperatures from rising above 1.5 degrees Celsius. degree Celsius.
At last week’s Shell Annual General Meeting, shareholders voted predominantly for the company’s plans for energy transition – but, crucially, a growing minority has rejected the strategy, insisting the oil giant should have done much more to combat climate change.
Activist investor Follow This said at the time that the result would likely mean Shell would have to revise its climate targets once again.
According to Reuters, the case is the first in which activists have brought a large energy company to court to force it to reconsider its climate strategy.
When the lawsuit was filed, a lawyer acting on behalf of environmental groups said the case would “increase pressure” on other fossil fuel companies.