British taxpayers could face a potential £4 trillion bill over historic greenhouse gas emissions, with a new report warning that international climate lawsuits could expose the UK to unprecedented financial risks.
A report by think tank Policy Exchange warns that an advisory opinion from the International Court of Justice could encourage claims from countries seeking compensation for the effects of climate change.
The report says the UK is likely to become a target for legal action, with campaigners and governments arguing that historic emissions linked to industrialisation created international obligations to provide financial support.
It warns that if Britain were held responsible for around 3 per cent of global emissions, the potential liability could exceed £4 trillion — a figure it claims could threaten the nation’s finances.
The report argues that the ICJ’s climate opinion, endorsed by the United Nations General Assembly, has created new legal uncertainty and could trigger a wave of claims against developed nations.
It calls on the UK Government to take action to protect the country from what it describes as “colossal financial risks”.
In a worst-case scenario, the report warns that lawsuits could contribute to “national bankruptcy”.
It also raises concerns that the ruling could be used to challenge future energy policies, including new oil and gas licences in the North Sea.
Former Foreign Secretary Malcolm Rifkind said targeting Britain because the Industrial Revolution began there would be unreasonable.
He argued that industrialisation had driven global economic growth and poverty reduction, with many countries now producing significant levels of emissions as their economies expanded.
Former Australian foreign minister Alexander Downer also criticised the prospect of using courts to impose climate reparations.
“Climate change cannot be fought with reparations,” he said, warning that international law should not be expanded beyond its limits.
Former Lord Chief Justice Ian Burnett said climate change was a serious issue but warned that the growing use of the ICJ’s advisory powers required political consideration.
Former Supreme Court Justice Jonathan Sumption said courts should interpret existing law rather than create new obligations.
The ICJ opinion followed a campaign by law students from vulnerable Pacific island states concerned about the impact of rising sea levels on their countries.
While the advisory opinion is not legally binding, critics fear it could provide a foundation for future litigation against high-emitting nations.
The debate now places the UK at the centre of a wider global argument over who should pay for the costs of climate change and how historic emissions should be treated under international law.
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