Institute responds to Lliuya v RWE verdict

Response to the ruling made by a German court in the landmark climate litigation case brought by a Peruvian farmer against electricity producer RWE.

Joana Setzer, Associate Professor at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science,  said: 

“Today’s ruling by the Higher Regional Court of Hamm marks an important moment in climate litigation. While the Court ultimately dismissed the individual claim, it confirmed a powerful legal principle: companies can, in principle, be held legally liable for the harms caused by their contribution to climate change. 

“The ruling affirms a key legal principle: just as courts have confirmed that companies have a responsibility to change their future behaviour in response to climate change — as in the recent Milieudefensie v Shell verdict — they can also be held accountable for the damage already caused by past emissions. 

“This verdict adds strength to a growing field of climate litigation. Over 60 cases around the world are currently seeking to hold companies liable for climate-related losses and damages. Today’s decision offers a powerful precedent to support those efforts, by confirming the legal foundation for corporate climate liability.” 

Noah Walker-Crawford, Research Fellow at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said: 

“This ruling sets a significant precedent. The Court confirmed that climate science can provide a basis for holding companies liable for their contribution to climate-related risks. It recognised that emissions from a specific company may be linked to real-world climate impacts, such as the increased flood risk. 

“Although the claim was ultimately dismissed on the facts — because the risk in this case was not found to meet the legal threshold — the judgment clearly signals that causation in climate litigation is legally possible. 

“This decision clarifies how climate science can inform judicial decision-making on corporate climate liability. It strengthens the foundation for future claims where the evidence is even more robust.”