Shell faces new climate lawsuit: Milieudefensie challenges future fossil fuel investments and inadequate climate policies
04 Jun 2025
Introduction
Milieudefensie, the Dutch NGO that previously took Shell to court, is initiating new legal actions against the oil company to address ongoing climate concerns.
Background of the case
The saga, which began in 2021 with a first-instance judgement and was later overturned by the Court of Appeal in 2024 (see our newsflash here), continues. Building on the 2024 Court of Appeal case in The Hague, which lifted the initial injunction requiring Shell to meet binding emission reductions, Milieudefensie is renewing its efforts to hold Shell accountable.
These actions will occur alongside ongoing proceedings before the Supreme Court, where Milieudefensie seeks to overturn the aforementioned Court of Appeal judgment.
Legal action initiated
On May 13, Milieudefensie sent a notice of liability (see here) and announced the possibility of new legal proceedings to Shell’s CEO, Mr. W. Sawan, as well as to the company's Executive Committee and Board of Directors, should no immediate action be taken.
Milieudefensie asserts that Shell is violating its legal duty of care under Dutch law due to its continued investments in new oil and gas projects and its inadequate climate policies for the period 2030 to 2050. The NGO highlights the significant role oil and gas companies play in exacerbating the climate crisis. With over 80% of global CO2 emissions stemming from fossil fuels, particularly oil and gas, these companies have historically hindered the implementation of effective climate policies.
Context
Milieudefensie’s letter states that, despite the urgent need to reduce reliance on fossil fuels, Shell plans to increase fossil fuel production and sales beyond 2030.
The letter quotes the ruling of the Court of Appeal of The Hague:
‘There is no doubt that the climate problem is the greatest issue of our time […] the court is of the opinion that companies like Shell, which contribute significantly to the climate problem and have it within their power to contribute to combating it, have an obligation to limit CO2 emissions in order to counter dangerous climate change.’
While the court did not specify the extent to which Shell must reduce emissions, Shell’s recent announcements show no intent to change course. Milieudefensie argues that significant policy changes are needed for Shell to meet its legal obligations. The NGO plans to seek a court order to prevent Shell from investing in new fossil fuel projects and aims to secure a reduction order for emissions aligned with the 1.5 °C target beyond 2030.
Milieudefensie’s claims
- Immediate end to Shell’s investments in new oil and gas fields
Milieudefensie is preparing legal action against Shell to stop its investments in new oil and gas fields, arguing these actions undermine global climate goals and contribute significantly to climate change.
Despite widespread agreements that new fossil fuel projects are unnecessary to meet future energy needs while adhering to climate targets, Shell continues to pursue these investments. Institutions such as the International Energy Agency (IEA) have highlighted that maintaining existing oil and gas production is sufficient in a net-zero scenario, and further investments are detrimental to climate strategies.
Shell’s planned investments contribute to a ‘carbon lock-in’, creating dependency on fossil fuel infrastructure that delays the transition to renewable energy sources. Once investments are made, the financial necessity to recoup costs typically ensures continued fossil fuel production, even if market demand declines, ultimately increasing carbon emissions.
The Court of Appeal has recognised that reducing fossil fuel supply is crucial for achieving the 1.5 °C climate target. Nevertheless, Shell’s current strategy suggests that more than half of its substantial investment budget is planned for new oil and gas projects. These actions by Shell and similar companies are seen as barriers to effective climate action, influenced by their significant political and economic leverage, a phenomenon known as ‘institutional lock-in’.
Furthermore, Shell’s continued investments exacerbate global carbon emissions, endangering the remaining carbon budget necessary to limit global warming. By advancing investments in new oil and gas fields, Shell hinders pivotal climate progress and the global energy transition.
- 1.5 °C-aligned emissions reduction targets in Scope 1, 2 and 3 from 2035 to 2050
Milieudefensie is also preparing to take legal action against Shell to enforce the reduction of Scope 1, 2, and 3 emissions in alignment with limiting global warming to 1.5 °C. Despite the critical need for emission cuts, Shell has admitted that its Scope 3 emissions are unlikely to decrease before 2030, and it lacks a comprehensive plan for reaching net-zero emissions by 2050, as its current business plan does not address this target.
Without binding emission reduction targets beyond 2030, there is little expectation that Shell will adequately reduce its total emissions to meet climate goals. Consequently, Milieudefensie plans to seek court mandates for Paris Agreement-aligned emission reductions beyond 2035. The organisation will base its demands on authoritative findings from the IPCC and the IEA’s Net Zero by 2050 scenario, which outline the necessary global steps to limit warming to 1.5 °C, taking into account factors such as energy security, technology use, policy developments and specific regional circumstances.
Conclusion
Milieudefensie has expressed distrust in Shell’s ability to voluntarily align with the Paris Agreement’s climate goals, citing a lack of hope for change under current management.
Despite the urgent need to halt the approval of new oil and gas fields, Shell has failed to act in a timely manner or to establish credible climate policies aligned with the 1.5 °C target for net-zero emissions by 2050. As a result, Milieudefensie plans to take Shell to court in parallel with existing proceedings, seeking to stop investments in new oil and gas fields and to enforce emissions reduction targets. The letter serves as formal notice under Dutch law of Milieudefensie’s intention to sue Shell for its harmful environmental impact, emphasising the need for dialogue but preparing for legal action should Shell not respond within four weeks.
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