Major emitters are liable to pay for climate damages: German court’s seminal ruling

Civil courts can now take calls on climate liability, and is applicable transnationally

On the climate action front, there is some good news. For the first time ever, a European high court has ruled that major greenhouse gas emitters can be held liable under civil law for the specific consequences of the climate crisis. 

In other words, major polluting corporations can be held accountable for the damages they have caused. This ruling was handed down during the case between a Peruvian farmer, Saúl Luciano Lliuya, and German energy giant RWE.

But this specific claim was dismissed by the court, as it did not find that the flood risk to Lliuya’s home was sufficiently high.

Though the final verdict went against the farmer, the court formally established the legal precedent that major emitters can be held liable under German civil law for climate damages.

Important breakthrough

The Lliuya vs RWE case ruling sets groundbreaking precedent, which can now be utilised in 40 other ongoing cases worldwide related to climate damages.

“Today marks the end of a long road for Saúl, but this case has already set a vital legal precedent. For decades, fossil fuel companies have ignored the costs of climate damage, growing profits while communities around the world bear the burden. That’s starting to change. Courts are starting to recognise the legal responsibility of major polluters, and the number of climate cases against them has nearly tripled since the Paris Agreement. This ruling could shape the outcome of other landmark cases, including those in the US and Europe, and marks a shift toward real accountability for climate harms,” says Sophie Marjanac, Director of Legal Strategy, Polluter Pays Project.

The most important inference that can be drawn from the German court’s ruling is that civil courts can now take calls on climate liability. The court clarified that civil claims relating to the impacts of climate change fall within the judiciary’s purview. 

On a broader scale, while solutions to the climate crisis hinge on political will, now individuals can go to courts for justice related to climate damages. This falls within the functions of civil justice. 

Another striking feature of the ruling was the transnational nature of such cases. The court recognised that Section 1004 of the German Civil Code—which protects individuals from the impairment of property or other rights—applies to climate-related risk cases, including transnational claims. In other words, the claimant who is exposed to climate risk can appeal to a German court even if they are a resident of another country.

Just like in Lliuya’s case, who is a citizen of Peru, but fought against RWE, a German company whose emissions originate in the European country.

“This historic judgment lays the next building block in corporate climate accountability. Last year’s Shell ruling showed us that big polluters have a legal obligation to reduce their future emissions in line with the Paris Agreement – today’s ruling affirms that these companies can be held accountable for their past emissions too,” says Jasper Tuelings, Strategic Advisor, Climate Litigation Network.

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