The BMW and Mercedes Climate Cases
The Bundesgerichtshof â Germanyâs highest court of civil jurisdiction â has handed down its first ruling on private climate liability and dismissed the widely discussed lawsuits against BMW and Mercedes. These strategic lawsuits were based on a very specific claim that is hard to replicate in other legal systems. Nevertheless, the rulings contain general considerations that, from a comparative law perspective, reveal a remarkable degree of judicial restraint.
A European first in Karlsruhe
On the 23rd of March 2026, the German Federal Court of Justice (BGH) dismissed two climate lawsuits against BMW and Mercedes-Benz. The cases were brought by three private citizens, who are also the directors of the interest group Deutsche Umwelthilfe (DUH). They sought, unsuccessfully, a ban on the global marketing of passenger cars with internal combustion engines after October 2030.
With these rulings, the BGH has achieved a European first. While the Dutch and Italian supreme courts already issued interim rulings in corporate climate change cases, for the first time, a highest European civil court has issued a final judgment on the civil law mitigation obligations of companies. Although the legal basis and consequently the courtâs reasoning are highly specific in nature, the BGH also touches upon some universal questions concerning the role of civil courts to rule on civil law responsibilities of corporations concerning their greenhouse gas (GHG) emissions. The ruling will therefore attract attention in other jurisdictions where corporate climate cases are also being pursued, such as Belgium, France, Italy, the Netherlands and Switzerland.
The private life of the Neubauer ruling?
The claim was based exclusively on the unlawful intertemporal interference with the claimantâs general right of personality protected by Sections 823(1), 1004(1) of the German Civil Code (BGB), which is based on the constitutional protection of the respective elementary right enshrined in Article 2(1), 1(1) of the German Basic Law (GG). This âAllgemeines Persönlichkeitsrechtâ encompasses the right to privacy, freedom, and self-determination (¶ 4 of the BMW judgement).
The claimantsâ arguments can only be understood against the backdrop of the Federal Constitutional Courtâs (BVerfG) famous âKlimabeschlussâ from 2021 (BVerfGE 157, 30 â Neubauer). In Neubauer, the BVerfG established the concept of âintertemporal guarantees of freedomâ. The court held that the German legislature is obliged to establish a GHG reduction pathway that (1) leads to climate neutrality while adhering to the remaining German emissions budget, and (2) fairly distributes the opportunities to exercise the fundamental right to (emissions-related) personal freedom across generations (see Art. 20a GG in conjunction with § 1 s. 3 KSG). Current regulations that allow GHG emissions today already pose an irreversible legal risk to future freedoms, because any exercise of freedom involving GHG emissions will be subjected to more stringent restrictions in the future. Such burdens may not be disproportionately shifted onto future generations.
The claimants in the BMW and Mercedes-Benz cases tried to transpose this line of reasoning into private law, and hence the horizontal relationships between private actors. Their underlying reasoning is that at least in the medium term virtually all human activities generate GHG emissions, meaning that the restrictive effects of future reduction measures will be felt across almost all aspects of the claimantsâ (and, of course, othersâ) social and personal lives (¶ 4, 19â21). By continuing to place passenger cars with internal combustion engines on the market, BMW and Mercedes-Benz would consume too much of the remaining carbon budget too quickly. This, in turn, increases the likelihood and necessity of future climate regulation, which would interfere with the plaintiffsâ general personality rights (¶ 24). This subsequently amounts to an interference with their rights already today. That is because the level of emission reductions achieved today determines the extent to which intrusive and restrictive measures will need to be taken in the future (hence the term âintertemporalâ).
At first glance, the claim might appear unduly complicated, as the GHG emissions of the car manufacturers âonlyâ constitute a derivative interference. The direct interference with the claimantâs general right of personality lies in the future measures taken by the legislature. Strikingly, the claimants have not asserted any other infringements of their rights caused directly by the defendantsâ GHG emissions (e.g., property or health). In that respect, the claim fundamentally differs from claims in other European corporate climate mitigation cases, which primarily deal with the autonomous responsibility of corporations to reduce GHG-emissions, given the direct effects of these emissions on fundamental rights. The same is true for the lawsuit against VW backed by Greenpeace, which is currently being heard at the Court of Appeal. In the BMW and Mercedes-Benz case, however, the claimants for strategic reasons deliberately chose to solely focus on the possible incorporation of the Neubauer doctrine into private law.
Judicial restraint by the BGH
Although the BGH takes as its starting point that civil law may also provide protection against the harmful effects of greenhouse gas emissions by private actors (¶ 21), it sees no grounds for the proposed extension of the scope of the Neubauer doctrine. Several things stand out in the courtâs reasoning, which at some points is very Neubauer-specific, and hence less relevant for other European climate cases. In relation to other, more universal points, however, some comparisons and lessons can be drawn.
A lack of legislative corporate carbon budgets
First of all, the BGH ruled that an advance interference-like effect is in principle not possible here, because there is no statutory carbon budget established for individual companies. According to the BGH, without such budgets, the legislatively allowed emissions today of the corporations do not inevitably lead to regulations tomorrow (¶ 28). Although this argument seems to follow the BVerfGâs case law closely, it also raises doubts. That is because in Neubauer, the BVerfG did in fact establish a carbon budget for the Federal Republic of Germany (something it later only refused to do for the federal states). It is therefore not necessary for a budget to be laid down explicitly in law. Rather, it is sufficient if such a budget can at least be derived from the facts and the legal framework. From this perspective, the BGH could possibly also have assessed the budget for BMW (which is not to say that such a budget can be established in the end, as the Shell-case illustrates, ¶ 7.91â7.96 of that ruling). Instead, the court merely pointed out that there is no statutory budgetary requirement, thereby adhering to a restrictive interpretation of the case law of the BVerfG and its own institutional competency to assess carbon budgets for (major) private emitters.
The meaning of governmental (in)action
Secondly, the BGH ruled that the responsibility for future GHG emission reductions and regulatory restrictions lies solely with the legislature. Therefore, any resulting interference with the claimantâs personality rights cannot be attributed to individual actors (¶ 44, 47). This argument is supported by compelling reasons: the car manufacturers have no formal political say in decisions related to future climate legislation. Still, the reasoning doesnât quite sit right. One could also argue that through their GHG emissions corporations might factually and legally necessitate legislative action. Also, the pace of the corporationâs transition toward net-zero, does of course also influence the impact of such regulation.
Because of the specific (Neubauer) focus of the claims, these latter two elements, and the underlying question of the companiesâ own responsibility, come across less clearly. For example, in the Shell-case, which is now pending before the Dutch Supreme Court, the Court of Appeal of The Hague ruled that corporations such as Shell do have an autonomous civil-law based responsibility to reduce GHG emissions, also because governments expect corporations to take this responsibility. The Court of Appeal in the Shell case has explicitly highlighted that this responsibility may be further shaped by human rights provisions and that its existence is not contingent on the acts of others, be it states or competitors (¶ 7.24â7.27 of that ruling). The BGHâs judgment â which, again, deals with a fundamentally different claim â, does not contain any such considerations. Instead, the court wants to leave the Neubauer doctrine exactly where it came from: in constitutional law. Also, the invocation of Article 8 ECHR, and the KlimaSeniorinnen ruling, did not change this (¶ 21).
The relevance of public law
An aspect that is more comparable, though, is the question to what extent civil law responsibilities can extend beyond what a company is already required to do under public law (so-called legalization or regulatory compliance defense). Notions on this question can be found in the Shell-case, the German RWE-case, and the interim rulings of the Cantonal Court of Zug and of the Corte Suprema di Cassazione. The BGH stresses as a starting point the autonomy of private law and that, accordingly, civil law obligations can go further than public law obligations (¶ 41). Yet, in this specific case it did not find a basis for accepting more far-reaching obligations.
First of all, the BGH stresses that an obligation to cease placing passenger vehicles with internal combustion engines on the market does not follow international treaties, such as the Paris Agreement (¶ 38). Secondly, such an obligation cannot be found in statutory law (especially not in the repealed Art. 22 of the Corporate Sustainability Due Diligence Directive (CSDDD); ¶ 58).
Thirdly, the BGH finds that BMWâs compliance with the requirements of the Emission Reduction Regulation 2019 (EU) 2019/631, which in essence considers intra-European registrations of combustion engine vehicles to be generally justifiable until 2035, precludes any further obligations. The court holds that this Regulation conclusively governs precisely the conduct at issue in the proceedings, not least because according to its recitals, it is explicitly committed to the Paris Agreement. Although the BGHâs dogmatic reasoning on this point is questionable, the additional room left for national private law obligations to phase out cars with combustion engines might indeed be limited. However, also here the specific claim played a central role: possibly, a claim focusing directly on BMWâs GHG-emissions, and the reduction thereof, would have led to a different assessment. For example, in the Shell-case, the court concluded that the civil courts can establish mitigation duties, precisely because the (European) legislator has not intended to regulate such obligations of companies exhaustively through instruments such as the European Emissions Trading System 1 and 2, the Corporate Sustainability Reporting Directive (CSRD), and the CSDDD, and thus has not sought to preclude supplementary private law duties of care (¶ 7.53 of that ruling).
The courtâs institutional competence to assess corporate carbon budgets
Lastly, the BGH ruled it lacks the institutional competence to derive specific emission levels or reduction targets from the open wording of Article 20a GG. The bilateral framework of civil liability law would not be suited to the complex balancing of interests required for this purpose (¶ 45â46). Especially on this more universally approached issue, the BGHâs cautious stance, also compared to other European civil courts, becomes apparent.
On the one hand, there are good reasons for courts to exercise restraint in this type of climate litigation, which touches upon broad distributive questions. On the other hand, however, certain reservations can also be made regarding the BGHâs reasoning. The implicit message that, in the absence of statutory reduction targets, there is no role at all for the civil courts sits, in our view, uneasily with the core task of civil courts to adjudicate, on the basis of statutory law, the rights and obligations between the parties to the proceedings. This role must of course also be performed where such legal determinations have societal, political, and economic implications, potentially affect a wide range of conflicting interests, and involve technical and scientific knowledge.
In other cases and jurisdictions, civil courts have tended to argue along this line. Take, for example, the Shell-case. On the one hand, this judgment illustrates the challenges faced by civil courts when engaging with complex and uncertain knowledge regarding emission pathways and targets (¶ 7.76 of that judgment). In particular, the Courtâs (unsuccessful) search for scientific consensus regarding the reduction percentage applicable to the oil and gas sector for Scope 3 emissions illustrates this point (¶ 7.82). On the other hand, the Court assumes as a starting point that civil courts do have the institutional competence to assess, on the basis of scientific knowledge and insights, the potentially applicable reduction targets.
Other examples can be found in the (Swiss) Holcim case, and the RWE case. In the Holcim case the court also took notice of the lower court rulings in the cases against Mercedes-Benz and BMW. A key defense by Holcim was that a claim based on the claimantâs personality rights seeking emissions reductions by Holcim does not belong in civil proceedings, but in the political arena (¶ 1.4 of that judgment). The Cantonal Court of Zug held, inter alia, that the political dimension of the case, its potential societal consequences, and the fact that numerous divergent third-party interests are at stake, do not affect the private-law character of the claims brought. It is not the courtâs task to assess or determine climate policy in general (¶ 3.7.2), but rather to decide, on the basis of and within the framework of the private-law provisions invoked by the claimants, on Holcimâs obligations (¶ 3.7.3). Indeed, the court emphasized that it is the judiciary, and not the legislature, which is competent to rule on alleged violations of private law (¶ 3.7.5). Here too, of course, there are significant doctrinal differences with the Mercedes and BMW case. Nevertheless, the reasoning of the Zug court, like the court in the Shell case, shows on a fundamental level a greater sense of receptiveness for corporate climate change litigation.
Outlook
The BGH has rejected a very specific, strategically chosen mitigation claim based on the concept of intertemporality, which is unique to German constitutional law. Against this backdrop, the BGHâs judicial restraint becomes more understandable, although it can also be critically examined in light of the approaches taken by other European courts in relation to universal questions of the institutional competency of civil courts to engage with GHG-reduction claims. More climate cases will (most likely) follow for the BGH, which take a different legal route than has been taken in the BMW and Mercedes-Benz case. Yet, these cases will also raise foundational questions about the position of private law and civil courts in climate governance. These questions are not going to disappear; rather, they will become increasingly pressing. It is hard to imagine how the BGH could avoid dealing with them in the long term.
The post The BMW and Mercedes Climate Cases appeared first on Verfassungsblog.