Shell is under intensifying legal scrutiny as environmental organization Milieudefensie, the Dutch branch of Friends of the Earth, announces fresh legal action. The NGO, based in Netherlands, claims that by investing in new oil and gas projects despite a previous court decision requiring emissions reductions, the oil and gas company violated its duty of care under Dutch law. This case could escalate tensions between fossil fuel corporations and climate activists pressing for stricter adherence to international climate goals.

The foundation of this new lawsuit lies in a historic 2021 court decision, upheld in part during a 2023 appeal, which found Shell partially liable for climate change. The appeal acknowledged Shell’s obligation to reduce CO2 emissions, citing its substantial role in contributing to the climate crisis. However, it stopped short of specifying a target percentage for reductions. Milieudefensie now argues that Shell’s ongoing fossil fuel investments clearly violate the legal duties affirmed by that judgment. “Companies like Shell have it within their power to combat the climate problem and therefore have a legal obligation to reduce emissions,” stated the Dutch Court of Appeal.

Shell has stated  that it plans to expand fossil fuel operations, particularly in the sectors of liquefied natural gas and oil production through 2040. This strategy directly conflicts with climate science, which indicates that new fossil fuel development must be halted to limit global warming to 1.5°C.  More than 700 new oil and gas fields are presently under development by Shell, per a thorough report by Milieudefensie and Global Witness. Since May 2021, Shell has finalized investment decisions for 32 new projects, potentially resulting in 972 million tons of CO2 emissions, an amount nearly equivalent to the annual emissions of the entire European Union.

Excerpt from Shell Faces Renewed Legal Pressure on Fossil Fuel Expansion, Zacks, May 14, 2025