What legal principle is at stake in Lliuya v. RWE?

Prepare for the GARP Sustainability and Climate Risk Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Gear up for success with our materials!

The correct choice reflects the legal principle of proportional liability for emissions, which is central to the case of Lliuya v. RWE. In this case, the plaintiff, Saúl Lliuya, argues that RWE, a major German energy company, is partially responsible for climate-related damages in Peru due to its historical greenhouse gas emissions. The case seeks to establish a legal framework where companies are held accountable for the impact of their emissions on climate change and the resulting harm to individuals and communities.

Proportional liability refers to the idea that the responsibility for damages should be distributed based on the level of contribution to the problem. In Lliuya's situation, this involves assessing RWE's emissions relative to the overall emissions contributing to climate change and the specific effects those emissions have had, such as the threats posed by glacial melting and associated flooding to Lliuya's hometown. The case is significant as it addresses the emerging legal concept of holding corporations liable for climate change impacts.

Other principles like property rights, intellectual property, and environmental permits do not fully capture the essence of the case's focus on accountability for emissions and the principle of proportionate liability in the context of climate harm.

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