25/05/2021

(CA ) Young Climate Activists Beat Germany's Government In Court. Could It Happen Here?

CBC NewsEvan Dyer

The German government's defeat suggests youth-led climate lawsuits can be more than merely symbolic

A youth climate protester carries a sign at Queen Street West and Bay Street in downtown Toronto on Friday, March 19, 2021. (Sam Nar/CBC)

Young climate activists in Canada have turned to the courts in their fight to goad governments into taking their near-term climate commitments seriously. If the German experience is any guide, they may be on to something.

In a decision closely watched by the 22 young plaintiffs behind two climate lawsuits in Canada, Germany's constitutional court on April 29 sided with nine young Germans against their federal government. The court agreed the country's landmark climate legislation, passed in 2019, put too much of a burden on future generations and didn't take enough responsibility in the present.

"The provisions irreversibly offload major emission reduction burdens onto periods after 2030," the court ruled, ordering the government to change the legislation.

Felix Ekardt, lead attorney for the plaintiffs, told CBC News his team "got the court to recognize for the first time that freedom must be guaranteed not only here and now, but also intertemporally and globally — that is, across generations and across state borders."

Germany's Minister of Economy and Energy Peter Altmaier agreed, calling it "epochal for climate protection and the rights of young people."
We feel that we are not being heard ... that lawmakers today aren't going to have to deal with the impacts and effects of their decisions in the way that we, the youth, will."
- Plaintiff Lauren Wright of Saskatoon
Not long after the court ruling, Germany's leaders (already feeling heat from a Green Party surge in the polls) quickly emerged with a new draft law that increases the emissions cut target for the end of the decade dramatically — from 55 per cent below 1990 levels to 65 per cent. They also brought forward their net-zero target date by five years.

German Environment Minister Svenja Schulze said the new law takes on a "gigantic" task. "For the first time, the most strenuous part of climate protection is not being postponed to the distant future," she said. "The Constitutional Court ordered us to do this and the government reacted very quickly."

A morale booster

Ekardt remains cautious about his legal team's achievement. "The government and parliament have only adjusted the target. It remains to be seen whether real measures will follow," he told CBC. "Moreover, even the targets have been inadequately adjusted."

Still, for 16-year-old Lauren Wright of Saskatoon — a plaintiff in a similar case against the Canadian government — the German verdict was "a big source of optimism."

"The quick turnaround time between the victory and measurable change starting to become enacted is very, very good to see," she told CBC News.

Thirteen of the 15 plaintiffs suing the Canadian government over its role in climate change stand together on the steps of the Vancouver Art Gallery in 2019. (Our Children's Trust)

Wright is part of a lawsuit sponsored by the David Suzuki Foundation and the Oregon-based Our Children's Trust. The suit is intended to force the federal government to adopt more stringent emissions targets. Our Children's Trust has sponsored a similar lawsuit against the U.S. government since 2015.

Another youth-based lawsuit, sponsored by the Canadian non-governmental organization Ecojustice, takes aim at the decision by the government of Ontario Premier Doug Ford to roll back the province's climate targets in 2018.

Most affected, least consulted

"The majority of our plaintiffs cannot vote. We are below voting age," said Wright. "I cannot contribute my voice in a way that I can elect people to positions of power.

"We feel that we are not being heard, that we're going to be disproportionately affected by these issues, that lawmakers today aren't going to have to deal with the impacts and effects of their decisions in the way that we, the youth, will."

Many courts have turned out to be receptive to that argument. The first breakthrough came in the Netherlands in 2019, when the Supreme Court ordered the government to cut the nation's greenhouse gas emissions by 25 per cent from 1990 levels by the end of 2020.

Vancouver attorney Chris Tollefson represents Wright and 14 other youth plaintiffs in the case LaRose v. HM The Queen.

"Increasingly, we're seeing very encouraging results in these kinds of cases," he told CBC News. "Courts increasingly are recognizing that there is a generational rights issue here, that these young people deserve at least to be heard."

Governments push back

Both the Ford government and the federal government of Prime Minister Justin Trudeau have fought to keep these lawsuits from moving forward in Canada — by filing motions that seek to prevent the young plaintiffs from making their cases in court.

The federal government has been more successful.

Last October, Federal Court Justice Michael Manson granted the government's motion to strike the LaRose lawsuit. Government lawyers had argued that the case was too political and the conduct alleged too broad — and that, in any case, there was no binding climate target for Canada to violate.

"That was a very disheartening moment for us in the case," said Wright.

This month, lawyers for the young plaintiffs filed an appeal of that decision, which they hope will be heard this fall. 

Ontario strikes out

Just a few weeks after the federal government's success in court, Ontario tried and failed to strike the Mathur et al lawsuit.

"Our clients decided to take Premier Ford to court over this because the Ford government did something that few governments have done in light of the scientific consensus on climate change," lawyer Fraser Thomson told CBC News. "They have chosen to weaken our targets, to go backwards."

In 2019, thousands of students around the world took to the streets for climate marches. (Dan Kitwood/Getty Images)

Ontario's move to roll back targets in 2018 left the provincial government with a vulnerability its federal counterpart doesn't share. Though the province argued that the case took the court "well beyond its institutional capacity," Superior Court Justice Carole J. Brown saw it differently.

"For the first time in any court case in Canada, a court has affirmed that my clients have the right and the ability to take their government to court under the highest law in the land, the Charter of Rights and Freedoms," said Thomson. "And they have a right to a hearing on a full evidentiary record."

Next steps 

"I think it's a very intriguing argument," said constitutional expert Carissima Mathen, a professor of law at the University of Ottawa. "It is one that has not obviously been put forward in the context of the Canadian charter before, and it would rely on a number of premises being accepted.

"One is that the current model by which we structure voting and participation is somehow deficient in providing for the interests of those who can't vote, and that simply by virtue of their age, they are structurally disadvantaged in how public policy decisions are made.

"It's a lift."

Mathen said that if the federal case is permitted to proceed, she would expect it to go all the way before the government accepts a defeat.

Headed for the Supreme Court

"I would be very surprised if any government would respond to a decision rendered by a court lower than the Supreme Court, because this is such a novel argument, such a profound argument, potentially about the reach of the Canadian charter," Mathen said.

"Of course, you can win on the argument. And then the next step, the really important final step, is what does the court do?"

Mathen said a court ruling in favour of the plaintiffs in either the federal or the Ontario lawsuit would lead to a range of possible remedies — starting with mere "declaratory relief," which would see the court determine that rights have been (or could be) violated and direct the government to take those rights into account.

"And then there's a continuum of much more interventionist remedies that the court could invoke, such as actually making some kind of order," she said. "I see that as less likely. Generally, Canadian courts have been less willing to intervene in that way and actually direct the government to take a decision, especially one that is quite complicated."

Ekardt said he expects the arguments that convinced judges in Germany will be equally convincing here.

"I am not an expert on Canadian constitutional law. But we argue exclusively with typical core elements of liberal-democratic constitutions — fundamental rights to freedom and to the elementary preconditions of freedom such as life, health and subsistence," he said.

Although his plaintiffs have suffered one legal setback, Tollefson said he shares Ekardt's optimism. 

"We're very confident about this lawsuit."

Links

(AU AFR) A Warming Climate For Disclosure-Related Litigation

AFRWill Heath | Daisy Mallett | Emma Newnham

Authors
Will Heath, Daisy Mallett, and Emma Newnham work at the international law firm King & Wood Mallesons.
Australia is the second-most active place for climate litigation after the US, which should ring alarm bells for company boards.

At its annual general meeting in May, Rio Tinto’s board supported two shareholder-requisitioned climate change-related resolutions, in an Australian first. Each resolution passed with 99 per cent support.

Other major ASX-listed entities have also committed to putting their climate reporting to a non-binding vote at their 2022 AGMs.

Driving this momentum are initiatives like the Say on Climate campaign. It seeks to compel listed companies to adopt climate targets, transition plans and rolling status reporting through AGM agitation.

Rio Tinto chairman Simon Thompson: listed companies and their boards face a hard task in engaging with climate activists and managing shareholder expectations. Trevor Collens

Debate continues on climate activism and the political heat is likely to increase in the lead up to COP26 in Glasgow and a federal election.

In this context, listed companies and their boards face unenviable jobs in engaging with those activists and managing shareholder and community expectations.

At King & Wood Mallesons, we’re telling our clients and their boards to keep in mind two key considerations: first, work out what you are going to disclose in relation to climate targets and transition plans; and, second, understand the risks of disclosure.

Who says what?

Climate change disclosure is a particularly complex and rapidly evolving area. There are a range of voluntary reporting frameworks and standards.

Certain regulators publicly support the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD). However, none of the frameworks or standards have been definitively adopted by governments or regulators in Australia, leaving listed companies and boards to navigate the thicket.

At the Rio Tinto AGM in Perth in May, shareholders requisitioned two climate change-related resolutions that passed with 99 per cent support. Trevor Collens

Our own King & Wood Mallesons analysis of climate disclosures by the top 50 ASX companies in 2020 identified that over 80 per cent reported against TCFD, with a majority also reporting against other voluntary frameworks or standards including the Global Reporting Initiative (GRI) sustainability standards and the CDP (formerly the Carbon Disclosure Project).

Grappling with various voluntary benchmarks against which to make disclosure is only part of the problem. Other issues for listed companies include how to undertake scenario analysis and how individual scenarios should be applied in particular industries, locations and circumstances.

More work is needed to simplify and conform the reporting frameworks and standards to reduce the reporting burden for listed companies and increase the consistency of climate-related disclosures.

The International Financial Reporting Standards Foundation recently announced plans to establish an International Sustainability Standards Board. This complements the publication of a prototype climate-related financial disclosure standard by a group of standard setters, including the GRI, CDP and International Integrated Reporting Council.

More disclosure for directors As listed companies and boards move to report voluntarily on climate change targets, they expose themselves to a real threat of litigation.

It is no secret that Australia’s securities and disclosure laws impose liability without regard to fault. Liability can be imposed for honest, inadvertent mistakes in ASX releases. Moreover, liability for directors is unnecessarily and anomalously duplicated so that directors can be held liable for breaching their statutory duty of care, despite being found innocent of disclosure breaches.

In this context, it is no surprise that two barristers recently published an opinion confirming that, in their view, companies and boards who make disclosure on climate targets face potential liability for misleading and deceptive conduct (and other breaches of law) if they do not have reasonable grounds to support the express and implied representations contained in disclosures on climate change commitments.

This risk of litigation is no longer a matter of opinion.

We have been reporting on climate change litigation in Australia, which is now seen as the second most active jurisdiction for such litigation after the United States. While this may be a badge of pride for plaintiff lawyers, it should ring alarm bells for listed companies and boards.

To date, most climate litigation in Australia has been commenced by groups wanting to bring about behavioural change rather than to extract damages. However, lawsuits in the United States illustrate that claims for compensation are in the climate activist’s playbook.

Finally, when it comes to directors’ duties, Australian law outdoes the United States. The courts of Delaware – where many major US-listed companies are incorporated – recognise a business judgment rule that essentially protects directors who act rationally and in good faith in the company’s interests.

In contrast, Australian law and courts do not appear to defer to directors’ commercial judgments in relation to compliance risk management and disclosures. In particular, recent Australian court decisions have held that company directors cannot rely on the business judgment rule defence in relation to ASX disclosures and other compliance matters.

Until there is a rebalancing of disclosure and governance rules and reform on litigation funding, we think litigation on climate-related disclosures will continue to heat up.

Links

(AU SMH) Foreign Diplomats Hear Critical Report On Australian Climate Policy

Sydney Morning HeraldNick O'Malley

A prominent public policy organisation has briefed a group of diplomats and foreign mission staff on what it says are misleading figures used by the federal government about the scale of Australian greenhouse gas emission reductions.

Prime Minister Scott Morrison at the start of the White House climate summit in April. Credit: Jessica Hromas

The progressive Australia Institute held the briefing on its analysis for diplomats and staff representing just under 50 foreign missions, including most of the Group of 20 wealthy nations on Thursday in Canberra.

The institute told the diplomats that though Prime Minister Scott Morrison told leaders at United States President Joe Biden’s climate summit in April that Australia had reduced emissions by more “than most other similar economies”, once changes in land use were removed from the calculations, national emissions had actually increased by seven per cent since 2005.

When emissions reductions from not clearing land for agriculture are included, Australia in 2019 had reduced its emissions by 19 per cent from 2005 levels, meeting Kyoto commitments and putting it on track to meet Paris commitments.

A spokesman for Energy and Emissions Minister Angus Taylor said the Australia Institute research had “zero credibility”.
Climate policy
Australia pressured to step up climate action during G7 talks

“Left wing political groups like the Australia Institute will never acknowledge Australia’s achievements in this space, because it doesn’t suit their biased agenda,” he said.

Norwegian Ambassador Paul Larsen, who attended the briefing, said he was aware of the Australia Institute as a well-respected research institution with a “government critical approach.”

He said he saw the point that the institute was making, and the figures presented were new to many who attended.

But he said Norway would not be criticising Australia, noting it was a significant exporter of fossil fuels itself, and Australia was meeting the targets set in the Kyoto climate agreement by the standards Australia had negotiated.

“This [method of emissions accounting] was part of the negotiations and I think nobody can criticise Australia for negotiating well,” Mr Larsen said.

Norway had chosen not to include carbon stored in its forestry sector because it would have made it “too easy” to meet reductions targets, he said.

Mr Larsen said he was aware of both the federal government’s so-called gas-led recovery and its “technology not taxes” strategy to bring down emissions. Gas had helped Europe reduce emissions, he said, adding Norway had adopted a “tax and technology” approach, and was rapidly and dramatically increasing the price emitters had to pay in tax in order to drive down its national emissions.

A spokeswoman for the British High Commission said it would share the Australia Institute report, to be published in full on Monday, with UK teams working on the UN Climate Change Conference, known as COP26, to be held in Glasgow in November.

Richie Merzian, the former climate diplomat who is now director of the Australia Institute’s climate and energy program, said the purpose of the briefing was to let foreign governments know that in its view Australia might be meeting its targets, but its policies were failing to meet the Paris Agreement’s goal of decarbonising economies.
Paris Agreement
Australia left behind as global climate action gathers pace

Director of the Centre for Climate and Energy Policy at Australian National University Frank Jotzo, who has also seen the report, said its analysis was correct, “unsurprisingly as it is simply taken from the national emissions inventory.”

He said almost all the 19 per cent reduction of emissions achieved in Australia since 2005 was due to shrinking the amount of land cleared for agriculture.

But he said these reductions were genuine and were in keeping with what is known as “the Australia clause” in the Kyoto agreement.

Professor Jotzo said no other developed nations used this as a meaningful part of achieving emissions targets.

He said Australia could do far more to reduce emissions from inefficient industrial, transport and manufacturing practices, though significant advances are being made in the electricity sector with the adoption of renewables.

Professor Jotzo said Australia might be badly received if it berates other developed nations that have succeeded in reducing energy related emissions, while Australia has taken the “easier path” of including reduced emission associated with cuts in land clearing, yet not strengthening its 2030 target.

Over recent months Mr Morrison has shifted his rhetoric on climate, saying his preference is to reach net zero by 2050, but so far Australia has kept its 2030 reduction target of 26-28 per cent of 2005 levels.

Norway’s target is a reduction of at least 50 per cent and towards 55 per cent below 1990 levels by 2030, broadly in line with the new United States target.

Links