The Consequences of Legal Challenges for Oil and Gas Industry: Global Trends in Climate Change Litigation and Management

Abstract

Background: Globally, there is mounting concern regarding climate change, which scientific consensus confirms through the undeniable rise in global temperatures. The blame for this unwavering trend can be attributed to anthropogenic activities, specifically non-renewable resource combustion like oil and gas usage. Consequently, there is an urgent need to curb greenhouse gas emissions and make the transition towards more eco-friendly energy sources. In recent years, the oil and gas sector has come under scrutiny and faced numerous legal challenges due to its role in perpetuating greenhouse gas emissions. Climate change litigation has emerged as an effective instrument for enforcing corporate accountability and promoting the adoption of sustainable energy alternatives. Methods: A thorough examination was carried out using a multi-faceted strategy that took into account legal, environmental, economic, and social aspects. The study encompassed an exhaustive assessment of both domestic and international laws and regulations relevant to climate change and the oil and gas sector. Moreover, various secondary sources concerning emission standards governing bodies, carbon pricing mechanisms, as well as other climate- related policies impacting the industry were also taken into consideration. Furthermore, pertinent case law records and dispute resolution systems were examined to evaluate the efficacy of existing legal frameworks. Results and conclusion: It has been noted that there has been a notable escalation in the number of legal disputes regarding climate change worldwide in recent times. These legal actions are intended to determine corporate accountability and encourage the implementation of ecologically sustainable sources of energy. The petroleum and natural gas industry is a significant contributor to the emission of greenhouse gases, which causes detrimental ecological effects both locally and globally. The key cause of climate change is the release of greenhouse gases, and it is crucial for this sector to limit these emissions if it is to effectively tackle the challenges posed by climate change.