German court rejects climate case against BMW and Mercedes-Benz

Germany’s Federal Court of Justice has dismissed a climate lawsuit that aimed to compel BMW and Mercedes-Benz to stop selling combustion-engine cars by 2030.

Filed by environmental group Environmental Action Germany (DUH), the case attempted to extend a 2021 Constitutional Court ruling, which placed responsibility on the state to protect future generations, to private companies.

However, the court did not accept that interpretation. Delivering its judgment, it said citizens’ personal rights were "not affected... by the business activities of the defendant," backing earlier rulings from lower courts.

It further clarified that "Private individuals cannot demand that automobile manufacturers refrain from placing passenger cars with internal combustion engines on the market" ahead of European Union timelines.

Focus shifts back to policymakers

DUH had pushed for a 2030 phase-out of fossil fuel-powered cars, five years earlier than the European Union’s current target, which was itself diluted after lobbying from automakers.

Following the verdict, DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".

She added that the ruling underlined the responsibility of the federal government, calling on Chancellor Friedrich Merz to take stronger climate action. The group is now weighing a possible appeal to the Constitutional Court.

Automakers back ruling

Mercedes-Benz welcomed the outcome, saying it provided "a clarification of our democratic system". It added, "Setting legal requirements for climate targets is the responsibility of the legislature, not the judiciary," while noting that climate protection remains a priority. BMW also supported the ruling, stating it brings "legal certainty for companies operating in Germany".

The company said, "Throughout the proceedings, we have consistently maintained the position that the debate over how to achieve climate targets must take place within the political process through democratically elected parliaments," reinforcing its long-held stance.

Courts becoming a climate battleground

The case is part of a broader pattern of climate activists increasingly turning to the judiciary. In a separate case last year, a German regional court said companies could, in principle, be held accountable for emissions. However, it stopped short of awarding damages to Peruvian farmer Saul Luciano Lliuya in his case against utility firm RWE.

The lawsuit against BMW and Mercedes-Benz reached the top court after lower courts in Stuttgart and Munich ruled that both companies were operating within existing regulations.

Transition continues, but hurdles remain

German automakers have invested heavily in electrification to align with EU climate goals. However, the pace of transition has been uneven. Higher upfront costs, inconsistent charging infrastructure and softer-than-expected demand have all slowed wider EV adoption.

(With inputs from AFP)

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