Growing Litigation Issues in the Energy Transition

New Energy World recently covered a Bracewell energy roundtable discussion, where partner Alistair Calvert gave insight into some of the growing trends in climate-related litigation.

“Driven by the nature of the energy trilemma – and the need to find balance between energy reliability, affordability and sustainability as three core elements on the road to net zero – we expect to see these pressures leading to a significant number of disputes,” said Calvert.

The first two elements, security and affordability, have already made a major impact and account for the majority of current disputes. “Most disputes in the energy sector are commercial,” he explained. “But issues around climate litigation are trending up. Though they still account for only a fraction of disputes.”

Calvert anticipates more disputes around energy security as nations seek to ring-fence resources. This is particularly the case when it comes to hydrocarbons, given the current crisis in the wake of the Russia/Ukraine war and the need for oil and gas resources.

He also noted increased litigation in respect to governmental net zero strategies and climate targets.

“We expect to see increasing challenges to be brought against the government, corporates and even individuals with respect to climate related targets,” Calvert added.

Article also published in the May 2023 issues of New Energy World.