08:33 AM EDT, 04/02/2024 (MT Newswires) -- Shell (SHEL) has initiated an appeal against a 2021 court ruling mandating a 45% reduction in its greenhouse gas emissions by 2030 arguing that the ruling obstructs its fight against climate change, Reuters reported Tuesday.

Shell's lawyer Daan Lunsingh Scheurleer argued before the court that the 2021 order lacks a legal basis and "obstructs the role that Shell can and wants to play in the energy transition," the report said.

Shell said that implementing the order would force the company to shrink its business, causing customers to switch to other fuel suppliers, the report said.

The ruling, issued by judges in The Hague, requires Shell to cut emissions equivalent to 740 million tons of carbon dioxide annually, a substantial increase from its current plans, Bloomberg reported. Shell targets to cut emissions by 15% to 20% by 2030, compared with 2016 intensity levels, Reuters reported.

The court has scheduled four days of hearings for Shell's appeal against the Dutch branch of climate group Friends of the Earth, until April 12, with a verdict anticipated in the second half of the year, according to media reports.

Shell and Friends of the Earth did not immediately respond to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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