Brazilian prosecutors have launched a major legal challenge against Shell, seeking $108 million over devastating floods that struck southern Brazil in 2024. The lawsuit targets the oil giant’s Brazilian subsidiary and links its alleged responsibility to greenhouse gas emissions and climate change.
The floods occurred in April and May 2024 after torrential rains hit Rio Grande do Sul state. The disaster killed nearly 200 people, displaced around 500,000 others and caused widespread damage.
Why Are Brazilian Prosecutors Suing Shell?
Prosecutors filed the lawsuit on Friday, arguing that Shell’s liability should reflect its estimated contribution to historical global greenhouse gas emissions. They put the company’s share at approximately two percent.
The claim seeks compensation for both material losses and moral damages suffered because of the extreme weather event.
In court documents, prosecutors said, “This civil suit is aimed at holding the defendant company accountable, in terms of its environmental and climate-related responsibilities, for collective material and moral damages stemming from the extreme weather event that hit Rio Grande do Sul state”.
They argue that Shell should bear responsibility for emissions associated with the exploration, production and sale of fossil fuels, including emissions from its past and current operations.
However, Shell said on Saturday that it had not been formally notified of the lawsuit.
A First for Climate Litigation in Brazil
The case, brought in cooperation with Brazilian environmental NGO Instituto Preservar, could mark a significant development in climate-related legal action against major fossil fuel companies.
Maria Antonia Tigre, director of global climate litigation at the Sabin Center for Climate Change Law, described the case as a first. She said, “This is the first time a national public prosecutor is suing an oil major for a climate disaster”.
Meanwhile, Thales Miola, a lawyer at Instituto Preservar, argued that the financial consequences of climate disasters should not fall entirely on affected communities.
In a press release, Miola said, “the costs of climate damage should not fall solely on society and on those who lost everything in the tragedy.”
He added, “Major polluters, who contribute significantly to greenhouse gas emissions and to climate change, must also answer for the losses they help cause”.
Climate Lawsuits Against Major Polluters Gain Ground
Around the world, environmental groups and lawyers have pursued legal claims seeking compensation from companies accused of contributing to climate change. These cases aim to link corporate emissions with damage experienced by vulnerable communities.
In Germany, courts moved towards considering this principle last year in a case brought by Peruvian farmer Saul Luciano Lliuya against energy company RWE. Although the courts rejected his compensation claim, they left open the possibility of holding major emitters financially liable for climate-related damage.
Other cases remain pending in several countries. These include claims by Philippine victims of Typhoon Odette against Shell in the United Kingdom and residents of Indonesia’s Pari Island against cement maker Holcim in Switzerland.
Additionally, Pakistani farmers affected by the devastating 2022 floods have pursued legal action against RWE and Heidelberg Materials in Germany.
Climate Litigation Also Faces Setbacks
Despite these developments, legal challenges against major polluters have not always succeeded. Climate groups have lost lawsuits against oil companies in the United States.
New Zealand has also seen a legal dispute affected by legislative changes. The government changed the law to block a lawsuit brought by Māori activist Mike Smith against six domestic companies. Nevertheless, Smith has vowed to continue his legal fight.
The Brazilian case against Shell adds another chapter to the international debate over corporate responsibility for climate-related losses. Its progress could help shape discussions about whether major emitters should contribute financially to the damage associated with extreme weather events.
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