Shell should not "be punished" for the government's "error of law" in granting permission for the Rosebank and Jackdaw oil and gas developments, the Court of Session has heard.
Environmental campaigners insist UK government failed to properly consider the environmental impact of the eventual burning of the fossil fuels produced by the North Sea fields.
The government gave the go-ahead for Rosebank and Jackdaw in 2023 and 2022 respectively.
But the UK Supreme Court ruled in a subsequent case that these emissions - known as scope three emissions - must be considered in environmental impact assessments alongside emissions caused by the extraction of the oil and gas itself.
Now, environmental groups Greenpeace and Uplift are arguing in the Court of Session that this means work on the fields should be brought to a halt while a more comprehensive environmental impact assessment is carried out.
On the second day of proceedings, Christine O'Neill KC, representing Shell, said the company had "acted lawfully" in relying on the government’s consent and should not "be punished" for doing so, the BBC reports.
She added “the question whether, how and to what extent any individual project contributes to climate change is a complex one”.
Ms O'Neill said Shell accepted that the approval of Jackdaw had involved an "error of law" on the part of the government.
The hearing continues.