* CEO van Beurden says ruling will accelerate transition
strategy
* Court ordered to Shell to cut emissions by 45% by 2030
* Shell will appeal decision, which cannot be suspended
(Adds background, shares)
By Ron Bousso
LONDON, June 9 (Reuters) - Royal Dutch Shell 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.
But the court ruling applies immediately and cannot be
suspended before the appeal, van Beurden said in a LinkedIn post
https://www.linkedin.com/pulse/spirit-shell-rise-challenge-ben-van-beurden.
"For Shell, this ruling does not mean a change, but rather
an acceleration of our strategy," van Beurden said.
Shell shares were up 0.8% at 1346 GMT compared with a 0.4%
gain in the broader European energy index.
Earlier this year, Shell set out one of the sector's most
ambitious climate strategies. It has a target to cut the carbon
intensity of its products by at least 6% by 2023, by 20% by
2030, by 45% by 2035 and by 100% by 2050 from 2016 levels.
"Now we will seek ways to reduce emissions even further in a
way that remains purposeful and profitable. That is likely to
mean taking some bold but measured steps over the coming years."
The court ruling called for Shell to cut its absolute carbon
emissions, a move van Beurden had previously rejected because it
would force Shell to scale back its oil and gas business, which
account for the vast majority of its revenue.
Shell currently plans to increase its spending on renewables
and low carbon technologies to up to 25% of its overall budget
by 2025.
Analysts have said the ruling could lead to a 12% decline in
the company's energy output, including a sharp drop in oil and
gas sales.
The court case came shortly after the International Energy
Agency said in a report that investments in new fossil fuel
projects should stop immediately in order to meet U.N.-backed
targets aimed at limiting global warming.
Shell, which is the world's top oil and gas trader, has said
its carbon emissions peaked in 2018, while its oil output peaked
in 2019 and was set to drop by 1% to 2% per year.
The ruling by the court in The Hague, where Shell is
headquartered, could trigger action against energy companies
around the world.
But van Beurden repeated his call for governments and
companies to tackle oil and gas consumption around the world,
and not only supply.
"Imagine Shell decided to stop selling petrol and diesel
today. This would certainly cut Shell's carbon emissions. But it
would not help the world one bit. Demand for fuel would not
change. People would fill up their cars and delivery trucks at
other service stations," van Beurden said.
"A court ordering one energy company to reduce its emissions
– and the emissions of its customers – is not the answer," he
added.
(Reporting by Ron Bousso, editing by Louise Heavens, Kim
Coghill and Elaine Hardcastle)
