Shell faces new legal threat in the Netherlands over continued fossil fuel expansion

Dutch environmental group Milieudefensie, the Netherlands arm of Friends of the Earth, has announced plans to launch fresh legal proceedings against Shell, accusing the energy giant of breaching its legal duty of care under Dutch law by continuing to invest in new oil and gas projects.

The group argues that Shell’s ongoing fossil fuel development and insufficient climate strategy for the period from 2030 to 2050 violate obligations recognised in a recent court ruling. The legal notice, issued Tuesday, follows a November 2023 appeal verdict that upheld a 2021 ruling which found Shell partially responsible for contributing to climate change and required it to reduce carbon emissions. However, the appeals court declined to specify the scale of reductions, which Shell had presented as a partial victory.

Milieudefensie is now using that same ruling as the foundation for new legal action. The organisation claims that Shell’s continued expansion into oil and gas, despite the climate crisis, amounts to a failure to uphold its duty to prevent harm.

Quoting from the 2023 appeal judgment, Milieudefensie said: “Companies like Shell, which contribute significantly to the climate problem and have the capacity to help combat it, are obliged to reduce CO₂ emissions to prevent dangerous climate change.”

Shell responded by acknowledging the urgency of climate action but criticised the lawsuit as counterproductive. “We agree urgent action is needed to tackle climate change,” a company spokesperson said. “Milieudefensie’s approach will not help drive the energy transition, which requires collaboration between governments, businesses and consumers.”

Shell has signalled plans to continue fossil fuel expansion—particularly in liquefied natural gas and oil—through at least 2040. The company said during its latest capital markets day that fossil fuel investments remain core to its long-term strategy. This direction comes amid investor pressure on oil majors, including Shell and BP, to prioritise shareholder returns and fossil fuel engagement over rapid shifts to low-carbon technologies.

Milieudefensie, in partnership with Global Witness, claims Shell is developing around 700 new oil and gas fields. Since May 2021, Shell has reportedly made final investment decisions on 32 new fossil fuel projects, which the group says could emit nearly one billion tonnes of CO₂.

“The climate crisis is, at its heart, a fossil fuels crisis,” Milieudefensie said in its letter to Shell. “Shell and other fossil fuel companies are actively undermining the clean energy transition by lobbying for and investing in long-term fossil fuel dependence.”

Legal proceedings are expected to begin within four weeks unless Shell responds in a way that satisfies the NGO’s concerns, Milieudefensie said. Earlier this year, the group also launched legal action against Dutch bank ING, accusing it of failing to adequately address climate risks by continuing to finance fossil fuel developments. ING dismissed the claims as “unrealistic and unreasonable,” while reaffirming its commitment to climate goals.

Previous Article

Valeo issues €650 million green bonds to support low-carbon mobility projects

Next Article

Electric cars on track to surpass 40% global market share by 2030: IEA




Related News