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Wednesday, January 25, 2023
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Enforcement of the Decision and Outcomes

The Court ordered Shell to reduce its greenhouse gas (GHG) emissions by 45% by 2030 from 2019 levels on the grounds that Shell’s existing carbon mitigation strategy was not concrete and is full of conditions and disclaimers. The Court also concluded that Shell’s plans were not aligned with the Paris Agreement. 

On July 20, 2022, Shell appealed the decision; however, the Court made its decision provisionally enforceable, meaning Shell will be required to meet reduction obligations even as the case is appealed. 

Significance of the Case

This case demonstrates how human rights legal frameworks are becoming more prevalent in climate litigation. The Hague District Court not only found a violation of Dutch law, but also of the United Nations Guiding Principles on Business and Human Rights, setting precedent for future litigation. For instance, in line with the Guiding Principles, the Court extended liability not just to the core companies that make up the Shell group, but also to all companies and other business enterprises that make up Shell group’s value chain. 

This case is an important step toward accountability for transnational corporations in the field of climate change and human rights. As the pressure mounts on States and private entities to do more to combat the climate crisis for which they bear significant responsibility, the Court’s reasoning here could be replicated in other climate-related claims in the Netherlands as well as in other jurisdictions.