Top German court dismisses climate lawsuit against BMW, Mercedes-Benz

Germany's Federal Court of Justice (BGH) on Monday dismissed climate lawsuits against automotive giants BMW and Mercedes-Benz that sought to ban the carmakers from selling new combustion engine vehicles beyond 2030.

The Karlsruhe-based court on Monday confirmed rulings by lower courts in Munich and Stuttgart dismissing the lawsuits, which were brought by pressure group Environmental Action Germany (DUH).

At the core of the cases was whether companies can be required to take such measures independently of existing government regulations.

Three DUH managing directors filed the case, basing their argument on the right to self-determination enshrined in the Basic Law, Germany's de facto constitution.

They claimed that by continuing to produce fossil fuel-powered vehicles, BMW and Mercedes are consuming a disproportionate share of global and national carbon dioxide (CO2) budgets, referring to the amount of emissions that can be released while still limiting global warming to internationally agreed targets.

The argument built on a landmark 2021 ruling by Germany’s Federal Constitutional Court, which required lawmakers to strengthen the country’s climate protection law.

The court found that existing provisions unfairly shifted a significant share of emissions reduction burdens to periods after 2030, infringing on the freedoms of younger people.

While that case addressed the state’s obligations, the latest proceedings at the court in Karlsruhe raised the question of whether major industrial CO2 emitters can also be held accountable in civil courts.

Following a hearing three weeks ago, Mercedes stated that setting legal requirements for climate targets was a matter for the legislature, not the courts.

A BMW spokesman also emphasized that the debate over how to achieve climate targets must take place in the parliamentary chamber, not in the courtroom.

BGH judge Stephan Seiters agreed with the companies' arguments, stating that "private individuals cannot demand that motor vehicle manufacturers cease to place on the market passenger cars with combustion engines before the deadline set by the EU Regulation setting CO2 emission standards for passenger cars."

The claimants' general right to privacy is not infringed by the companies' actions, Seiters ruled.

Germany's CO2 budget applies nationwide and does not break down into individual federal states, the transport sector or even individual companies, the court said.

It would be up to politicians to regulate this, Seiters added, confirming that "the responsibility for any possible necessity for future climate legislation lies with the legislator."

A constitutional complaint could then be lodged against CO2 emission limits for being too high, he suggested.

DUH national director Barbara Metz announced that the BGH ruling would be reviewed before the organization decides whether to appeal to the Federal Constitutional Court.