ENERGY & MARINE
Energy Companies Pressured to Step up Energy Transition after Landmark Court Ruling
As seen in Reuters | June 9, 2021
Royal Dutch Shell (RDSa.L) will seek ways to accelerate its energy transition strategy and deepen carbon emission cuts following a landmark Dutch court ruling last month, CEO Ben van Beurden said on Wednesday, a move that will likely lead to a dramatic shrinking of its oil and gas business.
Shell plans to appeal the May 26 court ruling that ordered it to reduce greenhouse gas emissions by 45% by 2030 from 2019 levels, significantly faster than its current plans.
“Among its peers, Shell had one of the most ambitious energy transition strategies, but apparently not aggressive enough. They must now increase their CO2 emissions’ target of 20% by 2030 to more than double that number, at 45%. Even though Shell’s strategy adheres to current legislation and regulations, the Dutch Court found they owed a larger Duty of Care. No doubt this groundbreaking decision has left other oil majors operating globally nervous of future potential lawsuits, pressure from activists and shareholders, and will accelerate more aggressive renewable and sustainable policies.”
– Nikki Howes, Client Advocate, West Region Energy & Marine Practice
EPIC Energy & Marine Practice
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