EXPLAINER-Shell appeals against Dutch court's landmark climate ruling

A Dutch court on Tuesday heard Shell's appeal against a landmark climate ruling which ordered it to drastically deepen planned greenhouse gas emission cuts. Shell has an "ambition" to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021.

A Dutch court on Tuesday heard Shell's appeal against a landmark climate ruling which ordered it to drastically deepen planned greenhouse gas emission cuts. Here are key points about the ruling and the appeal process:

WHAT WAS THE RULING? The district court in The Hague ordered Shell in 2021 to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels. The reduction includes emissions from the use of fuels sold to customers, which account for around 95% of Shell's emissions.

WHAT IS THE TIME FRAME FOR THE APPEAL? The court will hear from Shell and Friends of the Earth Netherlands, which brought the case, for four days this month. A verdict is expected in the second half of the year. A further appeal to the country's Supreme Court is widely expected regardless of the outcome of this appeal.

WHAT DOES THE APPEAL MEAN FOR SHELL? Shell said implementing the ruling would force it to shrink its business and would simply lead customers to shift to other suppliers of fuel.

WHAT ARE SHELL'S CURRENT CLIMATE TARGETS? Shell aims to reduce the carbon intensity of products it sells by 15-20% by 2030 from a 2016 baseline after watering down the target in March. Shell has an "ambition" to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021. Shell also aims to become a "net zero" emissions company by 2050.

DOES THE RULING AFFECT SHELL'S GLOBAL OPERATIONS? Yes. The reduction relates to Shell's global operations and is not limited to the Netherlands, the court ruling said.

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