The International Court of Justice (ICJ), the principal judicial organ of the United Nations, responded to two questions posed by the UN General Assembly in 2023:
- What are the responsibilities of countries in terms of protecting the climate and the environment from greenhouse gas emissions?
- What are the legal consequences for countries whose actions or negligence have caused damage to the climate or the environment? (The second question sought to clarify these consequences for the countries that have suffered, but also for individuals today and in the future.)
The MTS opinion was issued unanimously (which does not happen often) and is completely unambiguous:
- Countries that are parties to the UNFCCC (United Nations Framework Convention on Climate Change), the Kyoto Protocol, and the Paris Agreement are required to reduce greenhouse gas emissions and cooperate with each other in this regard.
- The binding target under the Paris Agreement is 1.5°C.
- Countries that are not parties to the above-mentioned treaties are also obliged to combat climate change under customary international law.
- Climate and environmental protection is fundamental to human rights.
- A state that fails to fulfill these obligations commits an internationally wrongful act and is responsible for it. This responsibility includes, among other things, full compensation for states that have suffered damage as a result.
In other words, the MTS completed the development of an international legal system concerning climate change and the natural environment. It put the finishing touches on it. It dispelled all doubts. For many years, the provisions of individual treaties were subject to different interpretations by different countries; usually, these were attempts by countries contributing to climate change to interpret them in such a way as to diminish their obligations or responsibilities. On July 23, 2025, this came to an end.
I encourage you to read the entire review, which is written in very understandable language. What's more, I encourage you to watch the entire session, during which the opinion was delivered. It was two hours well spent; no other training course will provide you with such a concise summary of knowledge about climate change and the rules that apply to us all in this area.
And what does this groundbreaking MTS opinion mean for us in our daily work on sustainable development in companies? (This is where the report on the opinion ends and my personal predictions begin.)
It will take many months before everyone realizes the groundbreaking nature of this opinion. Everyone, that is, members of company boards, investors, bankers, insurers, and government officials. The MTS opinion concerns states, but it is a fundamental element of jurisprudence in the field of climate, the environment, and human rights, and who has what obligations and who is responsible for what.
I expect insurance companies to be the first to realize that they need to raise liability insurance rates for companies that emit the most greenhouse gases and are not reducing those emissions, or are doing so too slowly. This is because these companies will be the first to bear responsibility for the damage they cause. Fund managers and banks will follow insurers in coming to the same conclusion.
But today, those involved in sustainable development in companies have gained a whole arsenal of arguments to use in everyday discussions. Why should we reduce greenhouse gas emissions in our company? Because our country has this obligation, and even if it is not yet literally enshrined in the laws directly applicable to companies, it will be soon, so it is better to be prepared. Because if we do not start reducing emissions today, we may soon be held accountable. No one will be able to argue that environmental and climate change issues are not part of human rights.
The greatest strength of MTS's opinion is its clarity, simple and direct literalness, which leaves no room for doubt or attempts at misrepresentation. For some time now, there has been a lack of such clear and loud statements 😊
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