Dutch court rules oil giant Shell must cut carbon emissions by 45% by 2030 in landmark case

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3 years ago

June 1, 2021

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A cyclist passes oil silos at the Royal Dutch Shell Pernis refinery in Rotterdam, Netherlands, on Tuesday, April 27, 2021.

Peter Boer | Bloomberg | Getty Images

LONDON — A Dutch court on Wednesday ruled oil giant Royal Dutch Shell must reduce its carbon emissions by 45% by 2030 from 2019 levels.

That’s a much higher reduction than the company’s current aim of lowering its emissions by 20% by 2030.

The landmark ruling comes at a time when the world’s largest corporate emitters are under immense pressure to set short, medium and long-term emissions targets that are consistent with the Paris Agreement. The climate accord is widely recognized as critically important to avoid an irreversible climate crisis.

Shell’s current climate strategy states that the company is aiming to become a net-zero emissions business by 2050, with the company setting a target of cutting its CO2 emissions by 45% by 2035.

A spokesperson for Shell said the company “fully expect to appeal today’s disappointing court decision.”

“We are investing billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels,” the spokesperson said via email. “We want to grow demand for these products and scale up our new energy businesses even more quickly.”

Shares of Shell were trading 0.2% higher in London. The stock price is up almost 10% year-to-date, having tumbled nearly 40% in 2020.

‘A turning point in history’

The lawsuit was filed in April 2019 by seven activist groups — including Friends of the Earth and Greenpeace — on behalf of 17,200 Dutch citizens. Court summons claimed Shell‘s business model “is endangering human rights and lives” by posing a threat to the goals laid out in the Paris Agreement.

Under the Paris Agreement — a deal adopted in 2015 and signed by 195 countries — nations agreed to a framework to prevent global temperatures from rising by any more than 2 degrees Celsius, although the accord aims to prevent global temperature rises exceeding 1.5 degrees Celsius.

Roger Cox, a lawyer for environmental activists in the case, said in a statement that the ruling marked “a turning point in history” and could have major consequences for other big polluters.

Meanwhile, Sara Shaw, Friends of the Earth’s international program coordinator for climate justice and energy, said the organization hoped the verdict would “trigger a wave of climate litigation against big polluters to force them to stop extracting and burning fossil fuels.”

Mark van Baal, founder of Dutch group Follow This, told CNBC via email that the judge’s ruling shows “Big Oil can no longer dismiss the crucial role it has to play in the fight against climate change.”

At Shell’s annual general meeting last week, shareholders voted overwhelmingly in favor of the company’s energy transition plans — but, crucially, a growing minority rejected the strategy, insisting the oil giant needed to do much more in the fight against climate change.

Activist investor Follow This said at the time that the result was likely to mean Shell would have to revise its climate targets once again.

According to Reuters, the case is the first in which activists have taken a major energy firm to court to compel it to overhaul its climate strategy.

Environment

Ford Mustang Mach-E to lose EV tax credit

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1 hour ago

December 6, 2023

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Ford Mustang Mach-E to lose EV tax credit

If you are thinking about buying Ford’s electric Mustang Mach-E, you may want to do so before the end of the year. Ford expects the Mach-E will no longer qualify for the federal EV tax credit.

Ford Mach-E will no longer qualify for the EV tax credit

The Inflation Reduction Act (IRA) is due for drastric changes at the end of the year that will affect which EVs will qualify for the tax credit.

Starting on January 1, more restrictions will be put into place. EVs with battery components from a “foreign entity of concern,” including China will lose a portion of the tax credit.

In 2025, the rules will get even tighter. The changes are designed to promote manufacturing in the US while building up a reliable EV supply chain network.

Ford expects to be among several automakers with EVs losing access. Tesla has already said its Model 3 RWD and Long Range will lose $3,750, starting January 1. Meanwhile, it will still qualify for the other $3,750.

In a bulletin sent to dealers (via CarsDirect), Ford said it expects the changes to impact the Mustang Mach-E. Although Ford is “awaiting finalized requirements,” given what we know, “it is unlikely that any Mustang Mach-Es will qualify” beginning the first of the year.

The company didn’t explain why the Mach-E will no longer qualify for the EV tax credit, but it’s likely due to the CATL-supplied LFP batteries.

Qualified customers are still eligible for a $3,750 credit, “making this an excellent motivator to purchase before the end of the year,” Ford added.

Shoppers can still take advantage of the full $7,500 tax credit through leasing. Meanwhile, Ford didn’t indicate the Lightning would be impacted by the changes.

Ford’s electric truck had its best sales month ever in November. All F-150 Lightning trims, except the Platinum version, qualify for up to $7,500 in savings. The Platinum model is excluded as it exceeds the IRA’s $80K cutoff.

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Environment

The US’s first utility-scale offshore wind farm delivers its first power

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2 hours ago

December 6, 2023

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The US's first utility-scale offshore wind farm delivers its first power

New York’s South Fork Wind has become the first utility-scale offshore wind farm to generate power in the US.

The first operational wind turbine at South Fork Wind sent clean power to Long Island today. The project has completed the installation of two turbines around 35 miles off Montauk, with all 12 SG 11-200 DD Siemens Gamesa turbines expected to be installed by early 2024.

The energy produced is being sold to the Long Island Power Authority under the terms of a 20-year agreement.

Stephanie McClellan, executive director at offshore wind nonprofit Turn Forward, said:

The generation of power from South Fork Wind is an incredible moment in the American clean energy story and for the Long Island communities that will benefit from this project for decades to come.

The 130-megawatt (MW) South Fork Wind will be the US’s first completed utility-scale wind farm in federal waters.

⚡First Power⚡@SouthForkWind is officially delivering its first power, becoming the first utility-scale offshore wind farm in U.S. federal waters to begin providing clean, offshore wind energy to the grid! pic.twitter.com/AVn6eQKV6n

— Ørsted U.S. (@OrstedUS) December 6, 2023

Danish renewables giant Ørsted is jointly developing the offshore wind farm with Boston-based energy provider Eversource. South Fork Wind’s first offshore wind turbine foundation was installed at the end of June, and its first US-built offshore substation was completed at the end of July.

South Fork Wind will produce enough clean energy to power 70,000 homes in New York. It will deliver clean energy directly to the electric grid in East Hampton via a single transmission line installed in March.

It will eliminate up to 6 million tons of carbon emissions, or the equivalent of taking 60,000 cars off the road annually over a 25-year period.

Photo: South Fork Wind

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U.S. crude drops below $70 per barrel, gas prices fall to 11-month low

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2 hours ago

December 6, 2023

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U.S. crude drops below per barrel, gas prices fall to 11-month low

Gas prices at a Shell gas station in Washington, DC, US, on Tuesday, Nov. 28, 2023.

Al Drago | Bloomberg | Getty Images

U.S. crude declined nearly 4% on Wednesday with retail gasoline prices hitting the lowest point since January ahead of the holiday shopping and travel season.

The West Texas Intermediate contract for January fell $2.80, or 3.87%, to $69.52 a barrel, while the Brent contract for February declined $2.68, or 3.47%, to $74.52 a barrel.

U.S. crude and the global benchmark have hit their lowest levels since June, despite efforts by OPEC+ to boost prices by promising to slash supply in the first quarter of 2024.

Prices at the pump in the U.S., meanwhile, have followed oil prices lower to hit $3.22 a gallon on average as of Wednesday, the lowest price since Jan. 3, according to AAA.

Oil prices have been on a steep downward trajectory from September highs as nations outside OPEC+, particularly the U.S., pump crude at breakneck clip and worries grow about the Chinese economy.

Moody’s on Tuesday downgraded its outlook for China’s government credit raging to negative from stable.

U.S. crude inventories fell by 4.6 million barrels for the week ending Dec. 1 and gasoline supplied to the market increased by 260,000 barrels per day, according to the Energy Information Agency.

Falling inventories and rising gasoline deliveries implies higher demand, which would typically boost oil prices. Pessimism about the economic outlook in China, however, appeared to be weighing heavier on crude prices.

Oil traders have also been skeptical OPEC+, which includes OPEC members and its allies like Russia, will deliver on supply cuts of 2.2 million bpd in the first quarter next year.

Several OPEC+ members announced the voluntary cuts last week after the group failed to reach a unanimous agreement on production targets.

Saudi Energy Minister Price Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak sough to assure the market this week that they could extend or even deepen the promised cuts.

Tamas Varga, an analyst with PVM Oil Associates, said those reassurances have “fallen to deaf ears.”