Countries impacted most by the effects of climate change can claim compensation from other countries responsible for greenhouse gas emissions, according to a new advisory opinion issued by the International Court of Justice. “This advisory opinion is in line with what has been a secular trend in climate litigation towards higher levels of state and corporate accountability,”  Dr Thom Wetzer told Pinsent Masons. “In this opinion, the International Court of Justice confirmed that 1.5C is the legally binding temperature target under the Paris Agreement and international law. This calls for urgent action, and the court explicitly noted that states are also responsible for the actions of the private sector. As a result, we should expect renewed legal pressure on states to regulate corporate activities that contribute to climate change. Recognising that trend and the implications for business models is a key part of prudent risk management.”

 At this year’s Oxford Sustainable Finance Summit, a panel investigating the risks of climate litigation found these are increasingly factoring into assessing financial outlook for firms. 'Net Zero Investor' also reports on the role of insurance as corporates begin to battle over who should be liable for costs caused by physical damages.

This opinion piece references a new report co-authored by Dr. Mireia Ginesta into the causes of the recent catastrophic floods in Texas. She emphasized that additional studies will be needed over the coming months to assess precisely what effect climate change had on the storm.

The European Commission has recently come under fire for attempting to weaken its laws on corporate accountability. Dr Thom Wetzer commented: “The European Union is proving itself not to be a reliable regulator because they’re flip-flopping in the face of changing political winds.”

A Peruvian farmer’s case against German multinational energy company RWE has been dismissed in court. Despite the setback, Dr Thom Wetzer stated in Common Dreams that the case had set "a remarkable precedent" that could enable future litigations. 

Ben Franta explains how a new court case has confirmed the principle that private companies can be held liable for climate damage.  

The EU has announced plans to simplify the Corporate Sustainability Due Diligence Directive, a move Dr Thom Wetzer described as "really risky" and a "a retrograde step."

The upshot is that “litigation risk on emission reduction is significant in the EU,” added Wetzer. “And that sets the European Union apart from many other parts of the world.”

Raconteur interviewed Dr Benjamin Franta on CLARA, an AI tool built by his team that can produce fast, accurate reports on fossil fuel company activities. “By increasing accountability, we hope AI can be a leveller – not just something big companies use for their own interests but also something people can use to hold corporations accountable," said Dr Franta.