Germany Court Rejects Climate Case Against BMW & Mercedes-Benz
Germany’s Federal Court of Justice on Monday rejected a case brought by environmental group Environmental Action Germany (DUH) seeking to compel automakers BMW and Mercedes-Benz to cease sales of combustion engine vehicles by 2030, a decision that underscores the ongoing debate over how best to enforce climate action.
The lawsuit, a landmark attempt to apply a 2021 German Constitutional Court ruling on climate protection to private companies, argued that the automakers were failing to adequately protect future generations from the impacts of climate change. The 2021 ruling established the state’s duty to safeguard the climate for future generations, but the court found that this duty did not translate into a legal obligation for individual companies to halt sales of specific vehicle types.
The court determined that the business activities of BMW and Mercedes-Benz did not directly infringe upon the personal rights of citizens, effectively upholding previous rulings by lower courts in Stuttgart and Munich. “Private individuals cannot demand that automobile manufacturers refrain from placing passenger cars with internal combustion engines on the market” before deadlines set by European Union regulations, the court stated.
DUH had sought a phase-out date five years earlier than the current EU target, which was softened last year following lobbying efforts from the automotive industry. Barbara Metz, DUH’s executive director, acknowledged the setback but emphasized that the ruling did not absolve the companies of their responsibility in contributing to the climate crisis. “The court has made it clear that responsibility for action lies with the federal government,” Metz said, calling on Chancellor Friedrich Merz to accelerate climate protection measures.
Mercedes-Benz welcomed the ruling, stating it clarified the boundaries of Germany’s democratic system. “Setting legal requirements for climate targets is the responsibility of the legislature, not the judiciary,” the company said in a statement. BMW echoed this sentiment, asserting the decision contributed to “legal certainty for companies operating in Germany.” Both companies emphasized their ongoing investments in electric and hybrid vehicle technology to meet EU climate goals.
The case is part of a growing trend of climate-related legal challenges. Last May, a regional court in northern Germany ruled that companies could, in principle, be held liable for the consequences of their emissions, though it did not award damages in a related case brought by Peruvian farmer Saul Luciano Lliuya against utility firm RWE.
German automakers have committed billions of euros to the development of electric and hybrid vehicles, but the transition has been hampered by slower-than-expected consumer demand, driven by factors such as higher purchase costs and limited charging infrastructure.
DUH indicated it is considering an appeal to the Constitutional Court, leaving the legal battle over corporate responsibility for climate change unresolved.