Conflict in Hamm: Can This Athlete Outperform RWE? - Farmer Outsmarts Energy Company in Hamm: Battle of Willpower against RWE?
Title: Hamm Court Battle: Farmers Lawsuit Against RWE in Spotlight Over Climate Change Accountability
Germany's Higher Regional Court in Hamm prepares to deliver a verdict on Wednesday, with global repercussions potentially hanging in the balance. At the heart of the ongoing lawsuit between Peruvian farmer Saúl Luciano Lliuya and energy giant RWE lies the question: can big polluters be held responsible for specific climate-induced damages?
Who is Saúl Luciano Lliuya?
A small-scale farmer from the Peruvian town of Huaraz and a mountain guide by trade, Saúl Luciano Lliuya has witnessed the cellphone-sized glaciers he knew as a child shrink to a fraction of their former size. His consternation arises from the rapid melting of the Palcacocha glacier lake above Huaraz, which threatens not only his home but also the 55,000 inhabitants of Huaraz with the risk of devastating floods and mudslides. Consequently, he filed a lawsuit against RWE in 2015.
What does Lliuya want from RWE?
Desiring compensation to fund protective measures against potential floodwaves, Lliuya alleges that RWE shares responsibility for the emissions of greenhouse gases from its power plants, as the company is estimated to be accountable for at least 0.47 percent of worldwide CO2 emissions and historically part of the hundred most significant contributors to climate change.
What does RWE say about the lawsuit?
RWE disputes the lawsuit's legality, underscoring that climate change is a multi-causal, global phenomenon, making it inadvisable to pin specific damages on a single company. A spokesperson for RWE noted that if its claimed liability were to stand under German law, every car driver could be held responsible. Instead, RWE calls for state and international action against climate change rather than retroactive court rulings.
The Trial's Course so Far
The litigation commenced nearly a decade ago, with the District Court of Essen initially dismissing the case. However, in 2017, the Higher Regional Court of Hamm granted the proceedings, suggesting that German businesses could be held accountable for global climate damages. This shift marked a significant expansion of German courts' domain beyond national borders.
In spring 2023, German judges and court-appointed experts traveled to Huaraz to gather evidence on the risk posed to Lliuya's house and family home due to the Palcacocha Glacier Lake. Two experts presented their findings during an oral hearing in Hamm in mid-March – both of whom downplayed Lliuya's concerns. They estimated the probability of Lliuya's house being impacted by a glacier flood within the next 30 years to be around one percent, with any potential flooding only reaching up to 20 centimeters. Nevertheless, Lliuya's legal team argues that the experts' findings overlook the danger posed by thawing permafrost and potential rockslides.
Chances for Plaintiff Lliuya
Legal analyst Frank Bräutigam expects a victory to be unlikely for Lliuya. The primary challenges include proving that RWE's emissions are directly responsible for the threat to his property and demonstrating that a single company's emissions causally contribute to specific climate damages.
Potential Consequences of a Guilty Verdict against RWE
If RWE were to be found liable, it could trigger a wave of lawsuits against large energy companies worldwide, resulting in stock price declines for affected businesses and opening the floodgates for climate-related litigation. In order to avoid such a scenario, the German government might be compelled to intervene to protect domestic companies from an onslaught of litigation.
While legal expert opinions suggest that Lliuya's prospects of success are slim, the farmer asserts that the significance of the process lies not in an immediate victory but in bringing international scrutiny to the climate crisis and its impact on his community.
Capital is a partner brand of stern. For more information, visit www.stern.de/capital.
References:
[1] Yahoo Finance - Peruvian Farmer sues RWE over climate change[2] The Guardian - RWE faces landmark climate lawsuit as German court considersPeruvian farmer's claim[3] Reuters - German court grants Peruvian farmer's lawsuit against RWE climate lawsuit goes to court[4] Carbon Brief - Analysis: Saúl Luciano Lliuya v. RWE - Unpacking the first climate liability suit to reach a German court
- The European Union could potentially be interested in the outcome of the Hamm Court trial, as it may set a precedent for holding large corporations accountable for their contributions to climate change and instigate similar lawsuits across the continent.
- Scientists and environmental scientists might scrutinize the verdict closely, as it could provide insight into the role of industry in climate-change-related damages and influence future policy-making concerning emissions and environmental protection.
- Financial institutions and energy companies are keeping a close eye on the proceedings, as a guilty verdict against RWE could lead to significant changes in the way the industry handles climate-change-related risks and expose them to potentially costly litigation.