Climate Litigation and Economic Liability
How lawsuits against fossil fuel companies and governments are creating new economic liabilities and reshaping climate policy.
The Litigation Explosion
Climate litigation has surged from a niche legal strategy to a global phenomenon. By 2024, over 2,600 climate-related cases had been filed worldwide across 48 countries. Cases target fossil fuel companies, governments, and financial institutions, arguing that they are legally liable for climate damages, failing to meet climate commitments, or misleading the public about climate risks.
The Urgenda case in the Netherlands (2019) was a watershed. The Dutch Supreme Court ordered the government to cut emissions by 25% by 2020, ruling that inadequate climate policy violated human rights. Germany's Constitutional Court followed in 2021, ruling that insufficient climate action infringed on the rights of future generations. These rulings established that governments have legally enforceable obligations to protect citizens from climate change.
