In a significant move highlighting the increasing pressure on automakers to address climate change, Environmental Action Germany (Deutsche Umwelthilfe or DUH) initiated legal proceedings against Mercedes-benz Ag on September 20, 2021. The lawsuit, filed in the Regional Court of Stuttgart, centers on DUH’s demand that Mercedes-Benz AG publicly and irrevocably commit to phasing out the sale of passenger vehicles equipped with internal combustion engines (ICE) by the year 2030.
DUH contends that Mercedes-Benz AG’s reluctance to definitively commit to this phase-out timeline constitutes a violation of the fundamental right to climate protection. Furthermore, the environmental organization argues that this inaction infringes upon the rights and freedoms of generations yet to come. According to DUH, a clear commitment to phasing out ICE vehicles is an essential step for Mercedes-Benz AG to align with its allocated carbon emissions budget and contribute meaningfully to global climate goals.
The legal action brought against Mercedes-Benz AG is firmly rooted in the principles of the Paris Agreement and German Tort Law. DUH’s case draws heavily from a precedent-setting decision by the German Federal Constitutional Court (BVerfG) concerning the German Climate Protection Act. In the Neubauer v. Germany case, the court acknowledged the reality of Germany’s finite remaining carbon dioxide (CO2) emissions budget. The lawsuit against Mercedes-Benz AG is among the pioneering civil cases to leverage this landmark constitutional court decision to push for more aggressive climate action from corporations.
In its formal request to the court, DUH outlined specific stipulations for Mercedes-Benz AG. Firstly, DUH requested the court to mandate that Mercedes-Benz AG must refrain from introducing ICE passenger cars to the market after October 31, 2030. This mandate would be conditional, unless Mercedes-Benz AG could conclusively demonstrate greenhouse gas (GHG) neutrality for Scope 3 CO2 emissions generated throughout the lifespan of their ICE passenger vehicles. Secondly, DUH sought a similar injunction based on a global emissions threshold. They requested that Mercedes-Benz AG be prohibited from placing ICE passenger cars on the global market between January 1, 2022, and October 31, 2030, if global Scope 3 CO2 emissions from their ICE cars were projected to exceed 511 million tons (calculated based on an average vehicle mileage of 200,000 kilometers).
As an alternative, DUH proposed a less stringent measure: an order for Mercedes-Benz AG to cease placing new ICE passenger cars on the German market after October 31, 2030. This alternative demand was also contingent on Mercedes-Benz AG failing to prove GHG neutrality for the real-world usage of these vehicles. It is important to note that the proposed ban on the production of new ICE cars sought by DUH would take effect considerably earlier than the European Union’s proposed effective ban on new combustion engine car sales from 2035, announced in July 2021.
However, on September 13, 2022, the Regional Court of Stuttgart delivered a setback to DUH’s efforts, dismissing the case against Mercedes-Benz AG. The court reasoned that the responsibility for determining and implementing appropriate climate protection measures rests with the legislative branch of government. The court asserted that this legislative prerogative could not be preempted or circumvented by individual lawsuits pursued in civil courts. Despite this unfavorable ruling, DUH has publicly stated its intention to appeal the decision before the Higher Regional Court of Stuttgart, signaling that the legal challenge to Mercedes-Benz AG’s climate strategy is far from over and will continue to unfold in the higher courts.
