3. Remedies

4. ESTABLISHED LEGAL AVENUES

In corporate climate litigation across 17 surveyed jurisdictions, pecuniary remedies include both the payment of damages for losses and expenses, as well as the imposition of monetary fines and civil penalties. These remedies fall into two categories: 'compensatory' and 'punitive.' Compensatory remedies aim to restore the injured party as closely as possible to their position before the injury or loss. Conversely, civil penalties and fines are punitive measures designed to punish the responsible parties and deter future violations.

Compensatory Damages

The concept of damages in corporate climate litigation represents a crucial mechanism that allows for the remediation of environmental damage, the restoration of ecosystems, and compensation for economic losses.

Canada

• In British Columbia v. Canadian Forest Products Ltd. (Canfor), the Crown sought compensation for damages from Canfor resulting from a forest fire caused by the defendant. These damages included: (1) costs for extinguishing the fire and rehabilitating the burned areas; (2) lost revenue from trees intended for harvesting; and (3) losses from trees designated for environmental purposes, such as habitat preservation or ecosystem maintenance, and not intended for logging. However, the Crown was only granted damages under the first category.

China

• The case involving Deqing Minghe highlighted the application of pecuniary remedies for environmental damage, with the court supporting the prosecutor's request for compensation covering ecological environment damage assessment costs, pollution removal, and environmental remediation expenses (Deqing County People's Procuratorate v. Deqing Minghe Thermal Insulation Material Company).

Australia

• In a class action brought by Indonesian seaweed farmers against PTTEP Australasia, the plaintiffs reached a pecuniary settlement for damages caused by an oil spill affecting their seaweed crops (Sanda v. PTTEP Australasia (Ashmore Cartier) Pty Ltd).

Monetary Penalties and Fines

USA

• In CLF v. Shell Oil (in Connecticut), the Conservation Law Foundation sought civil penalties against Shell Oil for failing to adapt its operations, specifically for not updating its bulk storage and fuel terminals in New Haven, Connecticut, to mitigate the impacts of climate change. At the pleading stage, the District Court in Connecticut ruled that civil penalties, aimed at penalising responsible parties and deterring future violations, were justified. The court evaluated these penalties similarly to how it would consider requests for injunctive relief, setting them apart from damages that seek compensation or aim to return conditions to their original state.

India

• Successful cases with heavy financial fines include Sterlite Industries v. Union of India and Sushil Bhatt v. Moon Beverages Ltd. Sterlite Industries was directed to pay INR 100 Crores for environmental pollution, and Moon Beverages, a Coca-Cola bottler, was fined US$2 million by the National Green Tribunal for groundwater pollution.