In Short

• Globally, climate litigation is seeing an upswing—and so are the business risks that come with it.
• Over 2,900 cases have been filed, including 164 in the US alone.
• These cases influence laws, corporate strategies, and public debate.

Climate litigation has been increasing globally, with individuals and organisations now taking governments, fossil fuel companies, and other businesses to some of the top courts for various environment-related reasons, notes a report by the Grantham Research Institute.

The study, Global Trends in Climate Change Litigation: 2025 Snapshot, shows that climate change threats have expanded into more arenas, driving up the number of climate lawsuits—some supporting climate action, while others opposing it.

In some cases, parties are also caught in the crossfire between various environmentally friendly initiatives—called green v. green cases—where they lock horns as a project intended to cut emissions might end up becoming counterproductive.

For example, India’s apex court is reconsidering wildlife protection rules to allow energy infrastructure projects. Similar concerns have been raised in Romania over hydropower developments in protected areas.

Read More: Swiss Council Pauses Climate Disclosure Revision

The field of climate mitigation is also becoming quite fully developed. More cases are being brought to top-level courts, particularly against governments. These cases concern more sophisticated issues such as who is responsible for emissions, how damage is proven, and how court rulings can be enforced, setting precedent for future climate cases and rulings.

Now, with nearly 60 countries reporting climate litigation, these types of subjects are no longer confined to a few places. It leverages a wide range of legal strategies, and entails a variety of people and organisations, including governments, corporations, activists, and citizens. Since 2024, there have been over 2,900 cases globally, with 164 in the US alone.

Strategic climate cases, which aim to bring about broader policy changes, have witnessed an uptick. A total of 187 cases were logged in the previous year. Their objective is to demand that governments improve their climate frameworks and hold emitters accountable for emissions.

Also Read: 198 Signatories Back Strong EU Sustainability Rules in Joint Statement

In the meantime, around 27% of climate cases in 2024 were filed against climate action, with the majority reported in the US, challenging green energy laws and ESG (Environmental, Social, and Governance) policies. Legal tools like SLAPP lawsuits were also used by some businesses and political groups to muzzle climate campaigners there.

Besides, some suits even questioned whether certain renewable energy or fossil fuel exploration projects took into account the impacts on local communities and their well-being.

As a result, climate litigation now carries financial risks. Famous cases, such as Urgenda v. Netherlands, have pushed governments to act on climate and garnered public support. New laws in New York and Vermont require fossil fuel giants to pay for damage caused by climate change, although they are being challenged in court awaiting verdict.

So, banks, investors, and insurers are increasingly acknowledging climate risks as a looming business threat that could hinder their operations and long-term strategies.

Another area that has lately seen a jump in litigation is social fairness during the climate transition, where cases argue that climate policies should uphold the rights of vulnerable communities or groups.

Considering all developments, it is quite certain that climate litigation will impact the decision-making of countries and companies as regards the climate crisis. While they are influencing laws, corporate strategies, and public debate, some specific fields—for instance, ESG values—are facing resistance, and success is contingent on the country and court involved.

Also Read: How ESG Backlash Is Driving Climate Litigation Battles

Needless to say, the world remains divided on reducing greenhouse gas emissions. Yet the room to cut emissions has not completely shut, still leaving space for discourses to happen and bring about change. But what’s more concerning is that failing to act now could result in irrecoverable losses, both financially and environmentally.

In the next few years, the picture might become clearer as to whether more climate litigation verdicts punish the elephants in the room or fuel their onslaught.

Ends/

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