By Abbas Nazil
Brazilian prosecutors have filed a landmark lawsuit against Shell’s Brazilian subsidiary, seeking $108 million in compensation for damage caused by devastating floods in the southern state of Rio Grande do Sul in 2024.
The lawsuit alleges that the oil giant should bear responsibility for its contribution to global warming, arguing that its historical greenhouse gas emissions played a role in the climate crisis linked to increasingly destructive extreme weather events.
The floods, triggered by torrential rainfall in April and May 2024, killed nearly 200 people, displaced about 500,000 others and caused widespread destruction across the state.
Prosecutors said the legal action seeks compensation for both material losses and moral damages suffered by affected communities, arguing that the costs of climate-related disasters should not be borne solely by victims and society.
According to the claim, Shell accounts for an estimated two per cent of historical global greenhouse gas emissions, and its financial liability should reflect its contribution to global warming.
The prosecutors said the company’s responsibility stemmed from greenhouse gases associated with its past and present exploration, production and sale of fossil fuels.
The case was brought in collaboration with Instituto Preservar, a Brazilian non-governmental organisation, and represents a significant development in efforts to use the courts to hold major fossil fuel companies accountable for climate-related damage.
Maria Antonia Tigre, director of global climate litigation at the Sabin Center for Climate Change Law, described the case as the first time a national public prosecutor had sued a major oil company over a climate disaster.
Thales Miola, a lawyer with Instituto Preservar, said communities that had lost homes, livelihoods and property should not be left to shoulder the entire financial burden of the disaster.
He argued that major polluters whose emissions contribute significantly to climate change should also answer for the losses associated with its impacts.
The lawsuit comes amid a growing international movement seeking to establish whether companies responsible for substantial greenhouse gas emissions can be required to compensate people affected by climate-related disasters.
In Germany, a case brought by Peruvian farmer Saul Luciano Lliuya against energy company RWE marked an important development when courts left open the possibility of major emitters being held liable for climate-related payments, although his compensation claim was rejected.
Other cases are pending in different countries, including claims involving Filipino victims of Typhoon Odette against Shell in the United Kingdom, residents of Indonesia’s Pari Island against cement manufacturer Holcim in Switzerland, and Pakistani farmers affected by the 2022 floods against RWE and Heidelberg Materials in Germany.
However, climate litigation has also faced setbacks, with environmental groups losing cases against oil companies in the United States.
In New Zealand, legislation was changed to block a lawsuit brought by Māori activist Mike Smith against six domestic companies, although he has pledged to continue his legal challenge.
The Brazilian case adds to mounting international pressure on fossil fuel producers as governments, communities and environmental organisations seek greater accountability for climate-related losses.
Its outcome could contribute to the continuing legal debate over whether major greenhouse gas emitters should pay compensation for the damage associated with climate change and how their financial responsibility should be calculated.
