* Court tells Shell to cut emissions by 45% by 2030
* Ruling says Shell's current targets 'not enough'
* Shell can appeal verdict
* FACTBOX: Big Oil's climate targets
(Adds Shell to appeal, comments, detail, shares)
By Bart H. Meijer
THE HAGUE, May 26 (Reuters) - A Dutch court on Wednesday
ordered Royal Dutch Shell to significantly deepen
planned greenhouse gas emission cuts, in a landmark ruling that
could pave the way for legal action against energy firms around
the world.
Shell immediately said it will appeal the court ruling,
which comes amid rising pressure from investors, activists and
governments on energy companies to shift away from fossil fuels
and rapidly ramp up investments in renewable energy.
At a court room in The Hague, judge Larisa Alwin read out a
ruling which ordered Shell to reduce its planet warming carbon
emissions by 45% by 2030 from 2019 levels.
"The court orders Royal Dutch Shell, by means of its
corporate policy, to reduce its C02 emissions by 45% by 2030
with respect to the level of 2019 for the Shell group and the
suppliers and customers of the group," Alwin said.
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.
But the court said that Shell's climate policy was "not
concrete and is full of conditions...that's not enough."
"The conclusion of the court is therefore that Shell is in
danger of violating its obligation to reduce. And the court will
therefore issue an order upon RDS," the judge said.
The court ordered Shell to reduce its absolute levels of
carbon emissions, while Shell's intensity-based targets could
allow the company to grow its output in theory.
Shell said in response that "urgent action is needed on
climate change" and that it has therefore set out its plan to
become a net-zero emissions energy company by 2050.
Shares in Shell's London-traded stock were down 0.7% at 1427
GMT, compared with 0.8% gains in the broader European energy
sector.
CLIMATE LITIGATION
The lawsuit, which was filed by seven groups including
Greenpeace and Friends of the Earth Netherlands, marks a first
in which environmentalists have turned to the courts to try to
force a major energy firm to change strategy.
It was filed in April 2019 on behalf of more than 17,000
Dutch citizens who say Shell is threatening human rights as it
continues to invest billions in the production of fossil fuels.
"This is a huge win, for us and for anyone affected by
climate change", Friends of the Earth Netherlands director
Donald Pols told Reuters.
"It is historic, it is the first time a court has decided
that a major polluter has to cut its emissions," Pols added
after the verdict, which Shell can appeal.
Michael Burger, head of the Sabin Center for Climate Change
Law at Columbia Law School said that "there is no question that
this is a significant development in global climate litigation,
and it could reverberate through courtrooms around the world."
Burger is also a lawyer representing local governments in
the United States in climate change lawsuits, including against
Shell.
The company, 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.
However, the Anglo-Dutch company's spending will remain
tilted towards oil and gas in the near future.
A rapid reduction in its carbon dioxide emissions would
effectively force it to quickly move away from oil and gas.
(Reporting by Bart Meijer; Writing by Ron Bousso and Shadia
Nasralla; Editing by Elaine Hardcastle and Alexander Smith)
