On Tuesday, oil and gas giant Shell won its appeal against a landmark 2021 court ruling that ordered the company to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels, including emissions caused by use of its products.

The Hague Court of Appeal on Tuesday ruled that Shell had a responsibility to reduce greenhouse gas emissions to protect people from global warming, but the court was unable to determine which percentage should apply.

“There is currently insufficient consensus in climate science on a specific reduction percentage to which an individual company like Shell should adhere,” it said.

The court agreed with Shell that an absolute order to reduce emissions from its products could have an adverse effect worldwide, as it could lead customers to switch from using Shell's gas to more polluting coal.

It is unknown at this time whether Friends of the Earth Netherlands, which brought the case in 2019, will launch a further appeal at the Netherlands’ Supreme Court.

The court noted that Shell is already taking steps to reduce its own emissions and that an obligation for the company to reduce emissions caused by buyers of its products would be ineffective.

Shell indicated that it is on track to meet the 2021 court order for its own production, where emissions were 30% below 2016 levels last year. It also plans to invest $10–15 billion between 2023 and 2025 in low-carbon energy.

Notably, Shell scaled back emissions targets for its products last March to a 15–20% reduction by 2030 relative to 2016 and retired a previous target to reduce its carbon emissions by 45% by 2035.