A Landmark Ruling in South Korea and the Rising Tide of Climate Litigation in Asia

In a groundbreaking decision, South Korea’s Constitutional Court ruled last August that the country’s climate policies fall short of their constitutional responsibility to protect future generations. The court found that South Korea’s current measures to tackle climate change were insufficient, infringing on the rights of future generations to a safe and healthy environment. This decision marks the first climate litigation ruling of its kind in Asia, and the National Assembly has been given until February 2026 to revise the law.

This landmark ruling could inspire a wave of climate litigation across the region, pushing other Asian countries to follow suit. As the momentum for climate accountability builds, the focus now shifts to Japan and its export credit agency – Japan Bank for International Cooperation (JBIC) – which was forced to open an internal investigation for violation of its own Environmental and Social guidelines for an Liquefied Natural Gas (LNG) terminal in the ecologically sensitive Verde Island Passage (VIP) in the Philippines.

The Role of Japan and South Korea in Fossil Fuel Financing

Fossil fuels are the single largest source of greenhouse gas emissions and the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA) agree: no new oil and gas investments are viable if we are to avoid climate breakdown. 

However, South Korea ranks second as the largest provider of international public finance for fossil fuels globally, investing an average of USD 10 billion per year in overseas fossil projects, primarily in gas and midstream fossil fuel transport. With a recent ruling now taking effect, South Korea’s decision underscores the need for stronger national climate action. 

Alongside South Korea, Japan is one of the largest public financiers of oil and gas projects globally. Through its export credit agencies, including the JBIC, Japan has backed projects across Australia, Canada, and Mozambique, many of which have had devastating consequences on local communities. These projects besides locking-in gas dependency, often pose serious risks to community safety, biodiversity, and human rights.

Despite its pledge at the G7 Summit in 2022 to phase out fossil fuel financing, Japan has used loopholes to continue business as usual. The METI’s policy post-G7 commitment is not 1.5ºC Paris-aligned. In 2023, its fossil fuel financing increased compared to the previous year. JBIC alone accounts for 55% of all public finance for overseas oil and gas projects, positioning itself as the largest financier in the sector.

Japan is a gas empire, and the Japanese are involved in every step of the LNG industry. 

The Verde Island Passage (VIP) Investigation

According to a report by the Center for Environmental and Energy Development (CEED), Japanese public finance is a glaring contradiction to the country’s climate commitments. Fishermen, indigenous groups, and environmental advocates have voiced strong opposition to Japan’s support for LNG projects, citing “disastrous and harmful” environmental and human rights impacts. Japan’s fossil fuel investments have proven to be four times larger than the $24.5 billion it has provided for clean energy projects during the same period.

One of the most scrutinized projects that JBIC is currently involved in is the LNG terminal in the Verde Island Passage (VIP), a biodiversity hotspot in the Philippines. The terminal, backed by the Atlantic Gulf and Pacific Company’s Linseed Field Corporation’s (AG&P-Linseed), is part of a broader plan to expand LNG infrastructure in Southeast Asia. However, the project has been met with widespread opposition due to its  significant environmental damage, threatening marine ecosystems and the livelihoods of local communities who depend on these waters for fishing.

In response to these concerns, JBIC launched an internal investigation to assess whether the project violated its environmental and social guidelines. This critical decision lays the groundwork for legal challenges and increased scrutiny of JBIC’s future involvement in fossil fuel projects. It may also influence other financial institutions to reconsider their support for environmentally risky ventures. By testing JBIC’s commitment to climate action, the CEED complaint has highlighted both the effectiveness of internal guidelines and the growing scrutiny of public entities.

The Bigger Picture: Climate Litigation on the Rise

The ruling by South Korea’s Constitutional Court and the growing pressure on Japan underscore a larger trend, climate litigation is rapidly becoming a powerful tool for holding governments and corporations accountable. Since the signature of the Paris Agreement, there has been a notable rise in climate-related lawsuits around the world, pushing governments to meet their climate commitments and protect the environment. 

In 2023, at least 230 new climate cases were filed, compared to 190 filed in 2022. Although nearly 50, of the cases filed in 2023, are not aligned with climate goals, legal challenges targeting financial flows to projects misaligned with climate action are increasing in both number and scope.

South Korea’s case is not the first climate lawsuit against its government, and it certainly won’t be the last. As more countries face legal challenges for failing to meet their climate goals, this ruling is a reminder that promises made must be followed by concrete actions, including to restrict fossil fuel production and financing, or the courtroom awaits. 

Featured photo: Protect the VIP. Maximo “Ka Simo” Bayubay talking in a press conference in Tokyo about liquefied natural gas (LNG) projects in his home province of Batangas.