Landmark Climate Case in Germany Fails, But Sets Important Precedent

The German court's dismissal of Saúl Luciano Lliuya's lawsuit against RWE highlights the complexities of holding corporations accountable for climate change, while also recognizing the potential for future liability in similar cases.

A German court has ruled against Saúl Luciano Lliuya, a Peruvian farmer, in a pivotal climate lawsuit aimed at the energy company RWE. Mr. Lliuya argued that RWE's emissions were directly responsible for the melting of glaciers in Peru, putting his hometown of Huaraz at heightened risk of flooding. The court's decision not only rejected his claims for €17,000 in damages, intended for a flood defense project, but also blocked any further appeals, culminating a decade-long legal struggle.

The higher regional court in Hamm determined that Mr. Lliuya's flood risk was insufficiently high for the case to advance. However, the ruling has been heralded as a significant moment for climate legislation, affirming that energy companies could indeed be liable for damages linked to their carbon emissions. RWE, questioning its responsibility, emphasized its goals to phase out coal and achieve carbon neutrality by 2040.

The case gained traction among climate activists, who viewed it as a crucial step toward holding influential corporations accountable. Mr. Lliuya, a mountain guide with firsthand experience of climate change, reported a dramatic increase in water levels at Lake Palcacocha, raising concerns about potential flooding due to melting glaciers. He identified RWE as a defendant based on its prominence as a major contributor to historical carbon emissions.

Initially dismissed in a lower court in 2015, Mr. Lliuya's case found new life in 2017, when an appeals court recognized its merit. Legal advocates argued that RWE's share of global emissions justified their financial responsibility for Huaraz's flood defense efforts, proposing that the company contribute toward the anticipated $3.5 million construction costs.

Although the court ultimately rejected the specific claims, environmental organization Germanwatch celebrated the ruling for establishing a legal basis for accountability of carbon emissions. They expressed hope that this decision would inspire other cases worldwide, reinforcing the message that major polluters may be liable for the impacts of climate change.