Report
Decarbonization disputes: the evolving frontier of climate-related risk
The transition to Net Zero will not be smooth. The scale of the investment required, and the appetite to implement new policy, will cause unprecedented disruption for businesses and policymakers alike.
NGOs are increasingly bringing litigation against business leaders and governments, in a bid to discourage high-carbon activities, target alleged failures to adapt to the Net Zero transition, claim compensation for climate damage, and highlight instances of “greenwashing”.
Financial institutions are facing demands to reduce the emissions generated by their lending activities, and to report these emissions correctly. Banks and investors also risk being sued for withdrawing financing for high-carbon projects or businesses.
The decommissioning of nuclear power plants, as well as high-carbon infrastructure such as pipelines, are set to trigger lawsuits as parties dispute the allocation of costs and liabilities for the closure of facilities and the clean-up of contaminated sites.
We will see more construction litigation as low-carbon production facilities and transmission equipment are installed, and a rise in commercial disputes around non-performance of contracts as the energy transition impacts the provision of goods and services.
Dive into the report
Here you will find an introduction that includes the nine top-line themes corporates and investors should consider in the race to Net Zero. There are also individual in-depth Q&As with leading partners in the articles below.
Related people
Andrew Denny
Partner
London