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Shell faces new Dutch climate lawsuit over drilling

Financial Times Companies •
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Dutch activist group Milieudefensie has filed a fresh lawsuit against Shell demanding an end to new oil and gas drilling. The summons cites climate science and a 2015 Paris Agreement ruling that obliges the company to curb emissions. Shell, which shifted its legal headquarters to the UK in 2022, faces another test in Dutch courts for this month ahead immediately.

Shell’s trading arm is set to lift earnings after the war spurred higher gas margins, while the company has been retreating from several projects since last year. Activists have pursued the firm for eight years, pressing for a 45% emissions cut by 2030 versus 2019 levels. In 2024 Shell won an appeal overturning a court order to slash greenhouse‑gas output.

The Dutch Supreme Court will hear the emissions‑reduction case next month, a hearing that could revive pressure on Shell’s capital allocation. President‑director Frans Everts insists the firm’s legal stance is sound and that a “balanced energy transition” must weigh security, affordability and sustainability. Investors will watch whether any ruling forces a shift in the company’s long‑term oil strategy in Europe.