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Development finance facilities: Prospects for APAC
Sponsors and project developers across the renewables and energy transition space are currently facing a challenging macroeconomic environment.
Global | 出版物 | 八月 2023
The Montana District Court has handed down a potentially landmark judgment in climate litigation in which the State’s constitutional right to a clean and healthy environment was used as the basis to challenge its energy policy.
As we reported in our most recent bi-annual Climate Litigation update here, in June 2023, the trial took place in the novel climate lawsuit brought by a group of sixteen children and young people (aged 5 to 21) against the State of Montana for its endorsement of an energy system allegedly driven by fossil fuels. The Claimants claimed that the State’s energy policy is responsible for the effects of climate change (particularly drought and wildfires) that are affecting their lives. The policy therefore violates their constitutional right to a clean and healthy environment, as enshrined in the Montana Constitution. The Claimants focused on the State law forbidding the consideration of climate impact during environmental reviews.
On 14 August 2023, based on the extensive scientific evidence presented at the trial (covering issues such as climate projections, the impact of climate change on the psychological and physical health of young people, the particular harm experienced by the Claimants and the extent to which the Defendants’ actions contributed to such harm suffered), Judge Kathy Seeley ruled in the Claimants’ favour, setting a potentially powerful precedent for climate litigation in the US Courts.
For Montana itself, the ruling means that the State is now legally required to factor the climate impacts of proposed energy projects into the decision-making process. More broadly, although not a binding precedent across other States, if this decision survives future challenges, including the planned appeal by the Montanan State, it will likely influence other similar climate cases. There are a number of cases currently under way in States including Hawaii, Illinois, Pennsylvania and New York, where the State Constitutions also recognise the people’s right to a clean and healthy environment. As a result, the future of this decision of the Montana District Court will be closely watched by climate activists and States alike.
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Sponsors and project developers across the renewables and energy transition space are currently facing a challenging macroeconomic environment.
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