News

Download logo

The rapid rise of climate litigation is reshaping how energy policy is defined and enforced worldwide, with courts increasingly setting the parameters of climate action. Advisory proceedings at the International Court of Justice (ICJ) and the International Tribunal for the Law of the Sea (ITLOS) are establishing legal interpretations that extend far beyond national borders, influencing how governments regulate emissions, approve projects, and manage natural resources.

For Africa, the implications are significant. While the continent contributes less than 4% of global emissions, it faces mounting pressure to align with legal standards largely shaped outside the region. Without stronger participation in these proceedings, African states risk having climate obligations defined externally – with direct consequences for industrialization, energy access, and investment flows.

Against this backdrop, the African Energy Chamber (AEC) has moved to intervene in a landmark advisory proceeding before the African Court on Human and Peoples' Rights. The application seeks amicus curiae status in a case initiated by the Pan African Lawyers Union, which aims to define state climate obligations under the African Charter.

The case reflects a broader jurisprudential shift. Recent and ongoing proceedings build on earlier rulings such as Social and Economic Rights Action Center v. Nigeria and Ivorian League of Human Rights v. Côte d'Ivoire, which established environmental protection as an enforceable legal duty while affirming the need to safeguard broader socioeconomic rights. Together, these decisions are expanding the scope of climate-related obligations across jurisdictions.

At the global level, advisory opinions from the ICJ and ITLOS emphasize that states must exercise due diligence to prevent significant environmental and climate-related harm – setting clearer expectations for how climate obligations are interpreted under international law. While these interpretations stop short of prohibiting fossil fuel development, they introduce more stringent expectations around environmental oversight, regulatory enforcement, and long-term climate risk management.

This trend is already affecting the financing of oil and gas projects across Africa. Banks and insurers are increasingly cautious about backing high-emission infrastructure, citing reputational and legal risks. For example, Standard Chartered declined to finance the $5 billion East African Crude Oil Pipeline due to civil society pressure and climate concerns. These risk-averse stances make loans for large upstream projects harder to secure, leaving some discoveries unable to reach FID. In Nigeria, marginal field developments have stalled despite proven reserves, and refinery expansions that could improve local energy security struggle to attract funding. To fill these gaps, African-led initiatives like the Africa Energy Bank are emerging, reflecting a shift in financing flows in response to climate and regulatory risk.

As a result, the continent's ability to expand production and meet energy demand is constrained. Projects with strong fundamentals may face delays, stranded asset risk or permit uncertainty. Downstream and gas-to-power projects – critical for local consumption – also struggle for financing, even as climate and legal frameworks evolve. While institutions like Afreximbank have underwritten $2.5 billion toward Nigeria's Dangote Petroleum Refinery, upstream oil and gas finance remains fragmented amid global climate mandates and litigation risk.

In South Africa, the Climate Change Act (2024) aligns domestic law with international climate commitments, and recent litigation – including a Supreme Court of Appeal decision invalidating a gas power plant authorization for inadequate environmental assessment – demonstrates how courts are increasingly scrutinizing energy projects.

This shift is redefining risk for investors. Expanding legal interpretations – including the potential characterization of climate inaction as an internationally wrongful act – increase exposure for states and private operators. Projects that fail to meet evolving standards may face financing hurdles, delays or stranded asset risk, while governments may confront investor-state disputes if regulatory changes affect project viability.

At the same time, these legal developments are reshaping geopolitics. African states are leveraging climate-related legal findings to strengthen claims for climate finance, debt relief and technology transfer. By framing climate harm as a legal liability rather than solely a political issue, the continent gains negotiating leverage – but also subjects domestic energy strategies to greater scrutiny.

Within this landscape, the AEC's intervention ensures African priorities are represented in emerging legal standards. The Chamber advocates for a balanced interpretation that recognizes both environmental obligations and the right to development, particularly in a region where more than 600 million people lack access to electricity. Competing perspectives remain strong, with environmental groups calling for stricter limits on fossil fuel expansion under human rights frameworks.

“If Africa leaves its energy future to outside courts, we risk seeing policies designed for other continents applied here,” says NJ Ayuk, AEC Executive Chairman. “Climate litigation is not just a regulatory challenge – it affects financing for our oil and gas sector. Banks are retreating, discoveries can't reach FID and projects that could fuel our energy ambitions remain stalled. Africa must turn this challenge into an opportunity to define standards that protect the planet while ensuring our people, our resources, and our growth are not left behind.”

The rise of climate litigation marks a decisive shift from political negotiation to legal enforcement. For Africa, the stakes are clear: engage actively in shaping these frameworks or risk adapting to standards set elsewhere. Ensuring African representation in these processes is now critical not only to align climate ambition with economic growth and energy security but also to secure the financing necessary for the continent's oil and gas sector to reach its potential.

Distributed by APO Group on behalf of African Energy Chamber.