It follows a report from the International Energy Agency, saying a global drive to achieve net zero emissions by 2050 is only possible if all new investment and exploration in oil, gas and coal is halted from this year, that has created a sense of urgency.Carroll Muffett, Center for International Environmental Law
“The Shell decision is a watershed for the oil and gas industry,” said Carroll Muffett at the Center for International Environmental Law. After Shell argued that it was not up to the company alone to solve climate change, Muffett said the ruling “made clear” that the group and all its peers “must take responsibility for reducing not only the direct emissions that arise from its own operations, but the far greater emissions that result from the burning of its products.
Lisa Harlow, Emea head of investment stewardship at Vanguard, said: “Markets will price in the risk they see from the court ruling and other events. The important question for these companies is how are they managing transition risk.”Lawyers and energy analysts have said a precedent could be set, particularly in Europe, that exposes not only oil companies but all emitters of greenhouse gases to new legal suits.
Until now, governments have been in the line of fire but big corporate polluters such as miners, steel producers and airlines could face tighter scrutiny — and more litigation.