Not only do political and socio-economic changes influence the level of litigation in a given territory; climate change now introduces a new set of legal controversies.
Regulatory measures adopted by various state entities, whether aimed at preserving the environment or promoting renewable energy, have compelled companies and individuals to turn to administrative courts to protect business operations potentially affected by such measures. A recent example is the draft resolution on the land-use planning of the Bogotá Savannah.
Moreover, delays in licensing and changes in regulatory frameworks have contributed to the non-completion of renewable energy projects. In fact, the actions and omissions of the State in environmental matters constitute one of the main reasons why foreign investors have filed claims against Colombia before the International Centre for Settlement of Investment Disputes (ICSID), seeking protection for their investments.
In the private sector, climate change is expected to increasingly affect the availability and existence of all types of raw materials. This situation leads to price fluctuations that hinder compliance with supply quantities, which in turn causes the failure of real estate and infrastructure projects. These circumstances provide fertile ground for judicial or arbitral disputes related to construction, insurance, supply, and distribution contracts, as well as for claims invoking the theory of unforeseen circumstances and disputes over force majeure, whether substantiated or not.
Within companies themselves, climate change also plays a significant role. Shareholder or individual liability actions against corporate directors for failure to comply with corporate social responsibility or environmental, social, and governance (ESG) policies are imminent. At the same time, tensions are growing between shareholders advocating for sustainable growth and those focused on maximizing profits and revenues at all costs.
In sum, climate change brings with it a wide range of tensions among the rights and interests of various market actors, tensions that will increasingly be brought before courts and arbitral tribunals, perhaps more frequently than anticipated.
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