Fossil Fuel Giants Challenge the Netherlands Over Groningen Gas Field Closure
Despite an ongoing pending contract-based arbitration, Shell and ExxonMobil have initiated ICSID arbitration (Cases ARB/26/2 and ARB/24/44) against the Netherlands under the ECT. Shell’s claim (filed on December 23, 2025) and ExxonMobil’s parallel claim (filed through its Belgian subsidiary) seek full compensation following the government’s decision to accelerate the closure of the Groningen gas field to mitigate extensive seismic damage to thousands of homes. Although the Netherlands withdrew from the ECT in 2025, the treaty’s 20-year sunset clause enables both claims. Civil society groups, including SOMO, have condemned the filings. These cases demonstrate how fossil-fuel companies use ISDS to shift the costs of environmental remediation and climate-transition measures onto taxpayers. The proceedings risk creating a regulatory chill, potentially discouraging other states from taking similar urgent safety or climate actions. They also expose the ECT’s sunset clause as a persistent constraint on democratic climate policy, even after formal withdrawal. For detailed background, see ITN analysis, which examines how the contractual and treaty-based claims interact.