The case was brought by a group of environmental organizations and more than 17,000 Dutch citizens. They demand that Shell be forced to reduce carbon dioxide emissions by 45% by 2030.
Shell CEO Ben van Beurden says he wants the U.S. to remain in the 2015 Paris climate accord. Energy companies like Exxon Mobil and BP have also urged President Trump to continue supporting the deal.
Canada's potentially lucrative oil sands business faces serious economic challenges. It has some concerned about its future as environmental critics look for ways to keep the oil in the ground.
Shell announced the move late Sunday, describing what the company called "a clearly disappointing exploration outcome" in the Chukchi Sea, which is part of the Arctic Ocean.