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- Shell’s Wael Sawan: Verdict is ‘the right one for global energy transition’
- The ruling comes as Baku hosts the UN climate change conference COP29.
Shell won an appeal against a major climate ruling that ordered the oil company to cut its carbon emissions.
A Court of Appeal in The Hague overturned a May 2021 ruling that required Shell to reduce its CO2 emissions by 45 percent by 2030 from 2019 levels, instead of the 20 percent reduction planned by the company.
Seven activist groups, including Greenpeace and Friends of the Earth Netherlands (also known as Milieudefensie), brought the case on behalf of 17,200 Dutch people.
Decision: A Court of Appeal in The Hague overturned a May 2021 ruling requiring Shell to reduce its CO2 emissions by 45 percent by 2030 from 2019 levels (pictured below right: Donald Pols, director of Milieudefensie)
The landmark verdict said Shell was responsible for emissions across its value chain, including Scope 3 emissions, which cover those caused by the purchase, use and disposal of its products.
In its appeal, Shell argued that setting emissions targets should be the sole domain of national governments and that the target would not work because other suppliers would step in to provide oil and gas.
The FTSE 100 company also warned that the requirement to reduce Scope 3 emissions could result in customers opting to use coal instead of Shell’s gas.
Wael Sawan, chief executive of Shell, welcomed the appeal verdict, saying it was “the right one for the global energy transition, the Netherlands and our company.”
He added that the company’s ambition to be net zero by 2050 “remains at the heart” of its strategy, which was to “make good progress… to deliver more value with fewer emissions”.
Donald Pols, director of Milieudefensie, said that despite the decision, “the case has ensured that big polluters are not immune and has further fueled the debate about their responsibility in the fight against dangerous climate change.”
Climate organizations can appeal the ruling to the Dutch Supreme Court, although they have yet to confirm their intention to do so.
The ruling comes as Baku, the capital of Azerbaijan, whose economy relies heavily on fossil fuels, hosts the COP29 climate change conference.
Under Sawan’s leadership, Shell canceled plans to cut oil production every year for the rest of this decade, drawing the ire of environmental activists.
Oil and gas prices have soared over the past three years due in part to the easing of Covid-related restrictions and Russia’s large-scale invasion of Ukraine.
While they have slowed somewhat this year, the fossil fuel sector has continued to post strong results and generate significant returns for shareholders.
Shell posted $6 billion in adjusted profits for the three months ended in September, compared with analysts’ average forecast of $5.4 billion.
Russ Mould, investment director at AJ Bell, said: ‘Sawan is trying to get Shell to catch up with its US counterparts, which have moved up in terms of valuation.
‘The company’s long-term strategy to expand in the natural gas sector is bearing fruit, as gas is seen as a bridge between the most polluting fossil fuels, such as coal and oil, and renewable energy.
shell actions They were down 0.4 per cent at £25.40 just before midday on Tuesday.
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