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Behind the Money

Why companies could soon pay for climate change

Behind the Money

Topher Forhecz

Markets, Investing, News, Banking, Finance, Business, Business News, Crypto

4.4350 Ratings

🗓️ 13 July 2022

⏱️ 19 minutes

🧾️ Download transcript

Summary

A few years ago a Peruvian farmer filed a lawsuit against a German utility company thousands of miles away. The reason? A glacier is melting near his hometown. If it melts enough, it could cause a flood that may catastrophically damage his city. He says that over years the company's pollution has contributed to climate change, and because of this, it should help pay for protections against the potential flood. 


In this week’s episode, we’ll tell the story of a David vs. Goliath battle. How one man is taking on one of the world’s biggest polluters in a landmark case that could one day force companies to pay for damage they’ve done to the environment. 


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For further reading:

Who pays for climate change? The Peruvian suing a German utility

The Climate Game: Can you reach net zero by 2050?


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On Twitter, follow Camilla Hodgson (@CamillaHodgson)


Read a transcript of this episode on FT.com



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Transcript

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A few hundred miles north of Peru's capital of Lima lives a farmer named Saul Luciano

0:37.1

Ulya. He's lived in the region all his life, but in 2015 he followed a lawsuit against the largest utility company in Germany.

0:47.0

What stands out about this lawsuit is that the utility, called R-W-E. has no operations in Peru. But Saul says that he and this company on another

0:57.5

continent do have something to hash out and it has to do with a glacier that is melting near his city.

1:04.0

So essentially he is asking R. W. E. to help pay for the cost of defending Juarez, which is his hometown, from a potential flood.

1:15.7

The city is below a lake and there's a risk that as climate change accelerates,

1:21.4

an avalanche will collapse into the lake and the lake will

1:24.7

spill down into the city which could be potentially catastrophic. That's Camilla

1:29.8

Hudson, she's a climate reporter at the F.T.

1:33.0

And the reason that he's suing them is because they are one of Europe's biggest polluters, a major industrial

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