GLOBAL TRANSITION TO CLEAN ENERGY: A REVIEW OF THE HAGUE DISTRICT COURT DECISION AGAINST ROYAL DUTCH SHELL

Abstract

Recently, the Hague District Court delivered a ground-breaking decision against the Royal Dutch Shell (“RDS”), ordering RDS and its affiliates to limit or cause to be limited the aggregate annual volume of all CO2 emissions into the atmosphere (Scope 1, 2 and 3) due to the business operations and sold energy-carrying products of the Shell group to such an extent that this volume would have been reduced by at least net 45% at the end of 2030, relative to 2019 levels. This judgment constitutes an important step in establishing the responsibility of multinational companies in achieving the clean energy goals of the global community and, also, stands a good chance of positively influencing the outcome of similar cases in many other countries where climate change activists are likely to pursue kindred suits – especially if the legal frameworks in such countries are conducive to such climate change litigations.