{"id":87923,"date":"2024-11-12T00:00:00","date_gmt":"2024-11-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/11\/12\/shell-faces-dutch-court-order-on-emissions\/"},"modified":"2024-11-12T00:00:00","modified_gmt":"2024-11-12T00:00:00","slug":"shell-faces-dutch-court-order-on-emissions","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/11\/12\/shell-faces-dutch-court-order-on-emissions\/","title":{"rendered":"Shell faces Dutch court order on emissions"},"content":{"rendered":"

Shell <\/strong>might need to <\/strong>halve <\/strong>emissions by 2030:<\/strong> A Dutch court is set to issue a ruling today on whether to uphold a 2021 order mandating the company to reduce its absolute carbon emissions by 45% by 2030 compared to 2019 levels, Reuters<\/a> reports. The original ruling by The Hague district court included emissions resulting from the use of Shell\u2019s products. The ruling won\u2019t be final as both parties apply for another appeal. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

What Shell is saying: <\/strong>The company argues that emission reduction demands are the prerogative of states, not courts, and is contending that the ruling would not lead to climate benefits as consumers would simply switch to competitors. <\/p>\n

What now? <\/strong>The ruling won\u2019t be final as both parties apply for another appeal, and the Court could go one of three ways: Uphold, dismiss, or modify the ruling. One possible modification would be to exclude secondary emissions caused by product consumption.<\/p>\n

Shell has a track record:<\/strong> The company, which appealed<\/a> the court order in April, decided to water down its emissions targets<\/a>, especially its scope 3 emissions \u2014 indirect emissions from the use of its products up and down the value chain that represent 70% of a company\u2019s carbon footprint \u2014 by 15-20% by the end of the decade, down from the previous clear-cut 20% target. Shell also registered and sold 5.7 mn of \u201cphantom\u201d carbon credits<\/a> between 2015 and 2021 tied to CO2 removal that never occurred.<\/p>\n

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The US + Japan to support ADB in raising its climate financing:<\/strong> The US and Japan agreed to underwrite risks for the Asian Development Bank\u2019s (ADB) climate loans, effectively supporting the bank in raising its climate lending by USD 7.2 bn, Reuters<\/a> reports, citing an ADB executive. The agreement came after three years of negotiations with Western governments, and the bank is currently in talks with the World Bank, Inter-American Development Bank, and European Investment Bank to join the move. <\/p>\n

More details: <\/strong>The US and Japan will guarantee up to USD 1 bn and USD 600 mn, respectively, of existing loans. The ADB has a long-term target of USD 100 bn in climate finance between 2019 and 2039. In 2023, the bank lent USD 9.8 bn for green projects. <\/p>\n

Setting the tone: <\/strong>The move marks the first-ever sovereign backing for climate finance and paves the way for other development banks to ramp up their own climate lending. The innovative structure allows for raising the lending capacity of multilateral banks while avoiding \u201cgeneral capital increases\u201d from donor countries, which is usually a politically challenging process, ADB\u2019s Director of Partner Funds Jacob Sorensen told Reuters.<\/p>\n

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Eni<\/strong> sells more of Plenitude to EIP:<\/strong> Italian energy giant Eni is selling an additional stake in its renewables unit Plenitude to Energy Infrastructure Partners (EIP), Bloomberg<\/a> reports. The transaction \u2014 valued at around EUR 209 mn \u2014 brings EIP's total investment in Plenitude to about EUR 800 mn, a 10% share of the company. The transaction<\/a> was first floated last year, and would allow Eni to lock in a value for Plenitude and lay the groundwork for IPO plans.<\/p>\n

Part of a bigger plan:<\/strong> The move comes as part of a 2027 business plan to raise capital for new investments by selling around USD 8 bn worth of assets. Eni\u2019s biofuel unit Enilive is also in that sale pipeline after the company entered a temporary exclusivity agreement with US private equity firm KKR to sell it a 20% to 25% stake<\/a> last July. <\/p>\n

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