Shell faces new court case in Netherlands over oil and gas investments
British energy giant Shell is facing a new legal challenge in the Netherlands, as a Dutch climate activist group demands an immediate end to its investments in new oil and gas projects.
The lawsuit from Friends of the Earth Netherlands comes amid reports that Shell, like several industry peers capitalising on soaring profits post-Ukraine war, has scaled back renewable energy operations and weakened emissions targets.
Last year, the company told investors it aimed for a 4 to 5 per cent annual increase in liquefied natural gas sales over the next five years, planning to sustain “material” oil output beyond 2030.
In its summons, Friends of the Earth Netherlands stated: “Shell must stop bringing new oil and gas fields into production. This is necessary to protect us from Shell’s climate-disrupting activities.”
Shell has labelled the case “unreasonable,” arguing the activist group ignores the global economy’s need for fossil fuels and that production would simply shift to other companies if it were ordered to halt operations.
The company did not immediately respond to a request for comment on Tuesday.
Activistsโ years-long court battle against Shell
The lawsuit builds on another case brought by the activists that has been making its way through the Dutch courts for several years.
In that case, an appeals judge in 2024 ruled Shell had a responsibility to reduce emissions to protect people from global warming.
While the decision scrapped an earlier order setting a specific carbon reduction target for Shell, it did say the company’s plans to invest in new oil and gas projects were likely not in line with its obligation to cut emissions.
The appeals court could not rule on Shell’s investment plans, however, as these were not part of the demands in that case, which has now moved on to the Dutch Supreme Court.
The formerly Anglo-Dutch company moved its headquarters from The Hague to London in 2022, but has maintained a secondary listing at the Amsterdam stock exchange. Friends of the Earth has said a Dutch court retains jurisdiction, despite Shell’s move, as the company’s actions cause climate damage in the Netherlands.
A date for a hearing in the new case has not been set yet.
