Carbon Boomerang: The Landscape of Climate Litigation Risks

Climate-related litigation risk is the long-term risk that lawsuits targeting companies with high cumulated past emissions create liabilities, based on the company’s share of responsibility in the cost of global warming.

It is not limited to direct emissions and likely to occur in countries where extra- territorial jurisdiction and class action lawsuits exist. The tort cost could include adaptation costs at local level for states and cities (invested by anticipation), thus shortening the time horizon of risk from the years 2050-2100 to today. This concept note focuses on this type of risk.