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Article

10 Oct 2016

Author:
Edna Odhiambo, Thomas Reuters Foundation

Analyst says companies now liable for climate change damages

"In Kenya, companies now liable for climate change damages"

Climate change lawsuits are gaining momentum as citizens are increasingly turning to domestic courts to hold governments and corporations accountable for reducing greenhouse gas emissions. With the passing of its 2016 Climate Change Act, Kenya is among the few countries globally to directly regulate on climate change, signaling strong political will to pursue low-emission development. The act allows citizens to sue private and public entities that frustrate efforts to reduce the impacts of climate change...

An interesting feature of this law is the lenient standard required to prove liability. It is enough to prove that a corporation is not doing enough to address climate change without having to also demonstrate that a person has suffered loss or injury. Traditionally, in public interest environmental cases, though the law waives the requirement of demonstrating direct harm, there is still a requirement that an applicant establish that a section of society will suffer harm. Perhaps the indulgence granted to climate suits demonstrates the severity and urgency that we should all exercise when tackling a global crisis that threatens the survival of humanity.

The consequences of liability may be exceedingly costly for corporations as Kenya’s Environment and Land Court has the power to order compensation for climate victims where it deems appropriate. Once a company becomes included within a climate change regime, the likely substantial compliance requirements will entail significant, related ongoing costs of operation and management that could affect returns and competitiveness.