Damages from the climate crisis and the transnational liability of fossil fuel companies

commentary on the Lliuya v. RWE AG judgment

Abstract

This paper analyzes Lliuya v. RWE, decided by the Higher Regional Court of Hamm in 2025, as a landmark in developing civil liability for transnational climate damages. It examines how the ruling recognizes a legally relevant relationship between major greenhouse gas emitters (“carbon majors”) and victims of climate impacts, establishing a model of cumulative and proportional causation. The commentary highlights the legal innovation of adapting classical civil law principles to global environmental harm, integrating concepts of attribution and enhanced foreseeability. Although the claim was dismissed for lack of evidence of imminent risk, the judgment represents a significant step toward the justiciability of climate-related harms and the consolidation of corporate accountability standards in the context of the climate crisis.