Case Commented On: Luciano Lliuya v RWE AG (2025) Hamm Higher Regional Court, 5 U 15/17 OLG Hamm / Case No. 2 O 285/15 Essen Regional Court (see here for an unofficial translation of the decision)
PDF Version: Luciano Lliuya vs. RWE AG: Corporate Climate Liability Through the Lens of the Polluter Pays Principle
This post briefly examines the recent and long-awaited decision rendered by the German Higher Regional Court of Hamm in the Lliuya case. This judicial decision is the first to recognize the potential liability of a large greenhouse gas (GHG) emitter from the energy sector for actual climate-related risks. The decision could have significant practical implications for other large GHG emitters, which have contributed to the climate crisis over the last decades while profiting from their polluting activities. The Lliuya decision signals that legal accountability of carbon majors for the climate-related damage is increasingly likely, and large GHG emitters – not only in Germany but also here in Canada and elsewhere – should consider factoring the risk of legal liability into their business models in the future.