Corporate polluters in spotlight as case against RWE progresses

The German Higher Regional Court of Hamm has concluded hearings in Peruvian farmer Saúl Luciano Lliuya’s landmark climate case against German energy company RWE, with a decision expected on 14 April. The lawsuit, which has already set a global precedent for corporate climate liability, according to non-profit NGO Germanwatch, seeks to hold RWE accountable for its role in accelerating glacial melt that threatens Luciano Lliuya’s hometown of Huaraz with catastrophic flooding. Scientific studies link RWE’s emissions to glacier melt, increasing the risk posed by a rapidly expanding glacial lake above Hauraz, according to the NGO. This week’s hearings focused on the scientific evidence about the risk of flooding at the plaintiff´s property. A key question before the court was the extent to which Luciano Lliuya’s home and family are at risk. The plaintiff’s lawsuit argues that RWE should contribute its fair share to protective measures given its role in driving climate change endangering Luciano Lliuya’s community, explained Germanwatch. On the second day of hearings, scientists on the side of the plaintiff challenged key findings from a court-appointed expert report, highlighting critical “blind spots”. They argued that the report severely underestimated the risk of rockfalls triggered by thawing permafrost and failed to fully account for climate change’s accelerating impacts. The plaintiff’s legal team warned that the flood risk to Huaraz is much higher than acknowledged and urged the court to act accordingly. Dr Roda Verheyen, Luciano Lliuya’s lawyer from Hamburg-based law firm Günther, said: “We have now provided all the necessary evidence to move forward: There is a real danger to the house, and this risk is foreseeable within a reasonable timeframe. A flood would cause damage to the home. The only remaining question is what level of probability the court deems necessary. The court must take into account the rapid progression of climate change. Regardless of the final ruling, I welcome the court’s clear confirmation that major emitters like RWE can be held liable for climate damage and risks.” Luciano Lliuya said the climate crisis is a “daily reality”. “I worry about my family and the future of my city. This case is not just important for me and the people of Huaraz, but for every community living under the threat of the climate crisis. It’s about holding companies accountable for the damage they’ve caused and ensuring vulnerable communities like mine are not left to pay the price for a crisis we did not create. These past two days in court have been long, but the solidarity I’ve felt gives me strength. I look forward to justice, knowing this fight is bigger than just my home, it’s about protecting everyone at risk." Germanwatch said the case builds on a precedent-setting court decision that recognised major polluters could be held liable for climate-related risks and damages. In a landmark decision, the court upheld Luciano Lliuya’s claim under Germany’s “neighbour law”, allowing the case to proceed. This established that high-emitting companies can, in principle, be held accountable by those suffering the consequences of climate change. A final ruling could further cement this legal precedent, said Germanwatch. Christoph Bals, chief policy officer at the organisation, said: “For the world’s biggest corporate polluters, this case signals that their emissions come with serious financial risks. Policymakers cannot wait for a flood of lawsuits, they must act now to ensure major emitters pay for the damage they have caused.” This is the first case of its kind against a European company, with far-reaching implications, said Germanwatch. With more than 40 climate lawsuits globally challenging major emitters, the legal risks for fossil fuel companies are mounting. Research suggests that 25 of the world’s largest oil and gas firms could be liable for up to $20trn in damages from their emissions between 1985 and 2019, added the NGO.

Corporate polluters in spotlight as case against RWE progresses

First case of its kind against a European company has far-reaching implications

Want to read this article?

Read Next

Climate risk needs new focus on risk reduction, says Zurich

Retain focus on loss prevention and resilience despite softening conditions

Demand for D&O rapidly rising in India

Rates fall further in India, Middle East and Africa: Marsh

BI policies unlikely to respond as Spain and Portugal search for cause of mega blackout

Climate risk needs new focus on risk reduction, says Zurich

Retain focus on loss prevention and resilience despite softening conditions

Demand for D&O rapidly rising in India

Rates fall further in India, Middle East and Africa: Marsh

BI policies unlikely to respond as Spain and Portugal search for cause of mega blackout

Keep yourself informed

Sign up for Commercial Risk’s newsletters

Want to read this article?

Read Next

Climate risk needs new focus on risk reduction, says Zurich

Retain focus on loss prevention and resilience despite softening conditions

Demand for D&O rapidly rising in India

Rates fall further in India, Middle East and Africa: Marsh

BI policies unlikely to respond as Spain and Portugal search for cause of mega blackout

Related Articles

Keep yourself informed

Sign up for Commercial Risk’s newsletters