The recent Dutch Court of Appeal's decision to overturn a landmark ruling against Shell has cast a shadow over the global climate justice movement. While the court acknowledged the urgent need to address climate change and the role of corporations in reducing emissions, it stopped short of imposing specific reduction targets on Shell. This decision has significant implications for the future of climate litigation and the broader fight against climate change.

In 2021, a Dutch district court made history by ordering Shell to reduce its global CO₂ emissions by 45% by 2030. This groundbreaking decision marked a significant victory for climate activists and a turning point in corporate climate accountability. However, the appeal court's decision to overturn this ruling has raised concerns about the limitations of legal action in addressing climate change.

While the court acknowledged Shell's duty of care to reduce emissions, it argued that imposing specific reduction targets would be impractical and legally unsound. The court emphasised that companies should comply with existing regulations and industry standards, but it did not mandate specific emission reduction goals.

This decision has far-reaching implications for South Africa, a country grappling with the impacts of climate change. South Africa's Climate Change Act, which is set to come into effect, provides a framework for reducing greenhouse gas emissions and transitioning to a low-carbon economy. However, the specific implementation of these measures and the enforcement mechanisms remain to be seen.

The Dutch court's ruling highlights the challenges of holding corporations accountable for their climate impact. While legal action can be a powerful tool, it is often complex and time-consuming. To accelerate climate action, a combination of regulatory measures, market-based incentives, and public pressure is necessary.

South Africa, with its significant reliance on fossil fuels, has a unique opportunity to lead by example and transition to a sustainable future. By strengthening its climate policies, investing in renewable energy, and promoting sustainable practices, South Africa can contribute to global efforts to combat climate change. However, the country must also be prepared to address the legal and regulatory challenges associated with climate action, particularly in relation to corporate accountability.

The Dutch court's decision serves as a reminder that the fight for climate justice is far from over. While it may have set back the cause of climate litigation, it has also highlighted the importance of continued advocacy, policy reform, and international cooperation. As the world grapples with the climate crisis, it is imperative that governments, businesses, and civil society work together to create a sustainable future for all.

Written by Natalie Scott, Head of Sustainability, Werksmans Attorneys