Image Source: UN Media
A new report by Oil Change International and Zero Carbon Analytics reveals a startling surge in climate lawsuits against fossil fuel companies. In less than ten years the number of climate lawsuits against fossil fuel majors have nearly tripled.
The Rising Tide of Litigation
The world’s largest oil, gas, and coal corporations are being hit by an unprecedented wave of legal challenges. Fossil fuel giants like BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies are facing at least 86 climate lawsuits. These companies, responsible for a staggering 69% of human-caused carbon dioxide emissions, are finding themselves increasingly in the courtroom spotlight.
David Tong, Industry Campaign Manager at Oil Change International, emphasises the significance of this trend: “The wave of lawsuits against Big Oil could lead to serious impacts on their bottom line, a disincentive for investment in fossil fuel infrastructure, a reduction in corporate value, and a challenge to their social licence to continue harming communities around the world.”
Damages Claims Lead the Charge
The largest share of these lawsuits – 38% – involves claims for compensation for climate change damages linked to fossil fuels. Scientists are increasingly able to connect specific extreme weather events with the fossil fuel emissions that drove them. ExxonMobil, Shell, and BP are estimated to be responsible for climate-related costs of at least USD 1 trillion each, a similar value to their profits.
One notable case involves Peruvian farmer Saúl Luciano Lliuya, who is suing German electricity producer RWE. Lliuya argues that RWE’s greenhouse gas emissions contribute to the melting of a glacier near his home, threatening 50,000 residents with flooding. He believes RWE should partially cover the costs of flood defences.
“Taking on carbon majors in court can be daunting,” Lliuya states. “But the fear of losing your home and everything you’ve worked for due to the reckless actions of fossil fuel companies is even greater. People like me are in court because our livelihoods are at serious risk and we are asking judges to hold the fossil fuel companies responsible.“
Beyond Damages: Tackling Misleading Advertising and Emissions
The legal pressure extends beyond compensation claims. 16% of the lawsuits challenge companies’ misleading advertising about their environmental impact. This strategy has proven effective, with nearly all concluded complaints resulting in decisions against corporations or adverts being withdrawn. Recently ClientEarth successfully challenged BP’s ads in the UK for exaggarating its investments in renewable energy, leading BP to withdraw its ads.
Another 12% of cases focus on emissions reduction. A landmark ruling in 2021 ordered Shell to cut its emissions by 45% by 2030, marking the first legal mandate for a major fossil fuel company to reduce emissions. Shell has appealed, with a decision expected in autumn 2024.
The Road Ahead
As climate impacts intensify and scientific evidence strengthens, we can expect this trend of climate lawsuits against fossil fuel companies to continue. These lawsuits not only seek justice for affected communities but also aim to create financial disincentives for fossil fuel infrastructure investment and challenge the industry’s social license to operate.
The message is clear: the era of unchecked fossil fuel expansion is coming to an end, and the courts are becoming a crucial battleground to hold polluters accountable.
