Peruvian farmer takes Germany's RWE to court in landmark climate case

By Riham Alkousaa

HAMM, Germany (Reuters) -A Peruvian farmer who says German energy giant RWE's emissions have contributed to the melting of Andean glaciers, increasing the flood risk to his home, took his case to court on Monday in a hearing that could set a precedent for climate litigation.

The case, which began a decade ago and is now being heard in Hamm in Germany, could deliver a landmark ruling if the court holds the company accountable for past emissions and requires it to help fund climate adaptation for affected communities.

Saul Luciano Lliuya, supported by the activist group Germanwatch, wants RWE to pay around 21,000 euros ($23,000) toward a $3.5 million flood defence project.

" ... because of the climate crisis in Huaraz, the mountains, the glaciers are melting ... I am here to ask for climate justice," Lliuya said ahead of the hearing as activists cheered in the background.

In the mountains above Huaraz, glacier meltwater running into Lake Palcacocha creates a threat for the town, which has a population of over 65,000 people, he says.

Lliuya, 44, whose family grows corn, wheat, barley and potatoes in a hilly region outside Huaraz, says he has chosen to sue RWE because it is one of the biggest polluters in Europe -- rather than any particular company projects near his home.

Using data from the Carbon Majors database of historic production from major fossil fuel and cement producers, Lliuya says RWE has caused nearly 0.5% of global manmade emissions since the industrial revolution, and should cover a proportional share of the costs of the global warming they have caused. 

RWE, which is phasing out its coal-fired power plants, says a single emitter of carbon dioxide cannot be held responsible for global warming.

"If such a claim were to exist under German law, it would also be possible to hold every motorist liable," it said in a statement.

Sebastien Duyck, senior attorney with the Center for International Environmental Law, said: "Legal experts are watching closely to understand the extent to which this is going ... to set a strong precedent."

FLOOD RISK?

The case started in 2015 in the German city of Essen, RWE's home. It was initially dismissed, but the Higher Regional Court of Hamm let it go forward in 2017.

The court must first determine whether melting glaciers are raising the water levels in Lake Palcacocha, over 4,500 metres (15,000 feet) above sea level, and pose a direct risk to Lliuya's home in Huaraz over the next 30 years.

A packed courtroom listened as the hearing unfolded on Monday - outlining the case, presenting expert findings, and hearing Lliuya's lawyer challenge their conclusion of a 3% flood risk to his home over the next 30 years.

If the court finds there is a specific flooding risk to Lliuya's home, it will then examine the impact of climate change and greenhouse gas emissions on Andean glaciers melting and increasing the risk, which could take another two years.

A second day of hearings is due on Wednesday and a ruling on the first question could come then, but is more likely to be delivered some time later.

The case has inched along as a visit by court-appointed experts to study flood risks around the glacier was delayed until 2022 due to the COVID pandemic and coordination with the authorities. Such was the difficulty of the terrain, donkeys were needed to help reach the site, the court heard.

A 200-page expert opinion produced in 2023 has since been examined by the two parties before coming to court.

Harjeet Singh, founding director of the Satat Sampada Climate Foundation, dedicated to global climate justice, said cases such as Lliuya's could one day generate alternative funding for the impact of climate change.

"We can double down on those companies who are responsible for the crisis and how we can raise the proceeds to help people recover from current impacts," Singh said.

The sum that industrialised countries should also contribute to mitigating the effects of global warming - such as rising sea levels or extreme storms and heatwaves - has been argued over at successive U.N. climate summits up to last year's COP29 in Baku.

Since then, President Donald Trump has announced the U.S.'s withdrawal from the U.N. process, while other developed countries are diverting aid budgets to domestic challenges or defence spending.

Lliuya's lawyer, Roda Verheyen, said the fact the court had taken on the case was already a win. "In our hearts, we've already won," she said.

 ($1 = 0.9192 euros)

(Reporting by Riham Alkousaa; Editing by Kevin Liffey and Alison Williams)