Alan Andrews, interim CEO of the Net Zero Lawyers Alliance, explains why – despite an ESG backlash, economic headwinds and political opposition – every lawyer will need to develop their practice to meet the challenges and opportunities of climate change.
In 2021, against the backdrop of the Glasgow COP, John Kerry famously proclaimed “you are all climate lawyers now”, highlighting the vital role that lawyers needed to play in the energy transition, and warning that “no practice area will be untouched by the climate crisis.”
The current backlash against ESG and “woke capitalism” that started in the US and sparked a wider deregulatory push that has spread to Europe and beyond, might suggest that Kerry’s statement was premature. However, against the backdrop of a worsening climate crisis and an energy transition that has gathered unstoppable momentum, this will likely only lead to a change in emphasis and language, rather than a wholesale retreat from climate and sustainability regulation. Lawyers will continue to have a vital role to play in helping clients navigate this rapidly evolving legal landscape.
Climate change is an existential threat, a generational challenge, but also a tremendous business opportunity, not least for the legal industry. The lawyers of the future must equip themselves with the knowledge and skills they need to take advantage of the opportunity that this presents.
The lawyers who will thrive will be those who have the technical knowledge, the strategic vision and the commercial acumen to not only help their clients comply with a thicket of complex regulation but also gain and hold a competitive edge in the energy transition.
The unfolding climate crisis
In recent years, climate change has accelerated at an alarming pace, transforming from a looming threat into an immediate crisis. Record-breaking temperatures have become the norm, with 2024 being the hottest year on record, surpassing previous records and marking the first time a calendar year exceeded 1.5°C above pre-industrial levels.
This trend continued into 2025, with January registering as the warmest January ever recorded, and the LA wildfires the latest in a series of extreme weather events including hurricanes, floods and droughts, fuelled by warmer oceans and shifting atmospheric patterns.
With global emissions continuing to rise, these impacts are only going to grow in severity and frequency. This will eventually translate into pressure from voters, customers and investors for more ambitious policies by governments and corporations. It will also lead to climate risks crystallising as they appear on balance sheets, bringing into sharper focus the evolving nature of the legal obligations on fiduciaries to not just assess and disclose climate risk, but also proactively manage it.
The unstoppable energy transition
While the climate crisis is unfolding at an alarming pace, the energy transition that is needed to address it is already well underway, and underpinned by market forces that will see it continue to accelerate, even in the face of the current political headwinds.
Solar and wind power have become the most affordable sources of electricity in many regions, with new renewable energy projects now offering cheaper production costs than new coal and gas plants globally. Global investment in clean energy is already outpacing fossil fuel investments. The costs of key technologies such as electric vehicles, batteries and heat pumps will continue to fall so that they too will be not just the cleanest option, but also the cheapest.
The ESG backlash
There is no question that the legal response to the climate crisis is undergoing major disruption, however. The Paris Agreement is the cornerstone of the multilateral response to climate change, so the withdrawal of the United States will unquestionably have a major impact. The world’s second-largest emitter of greenhouse gases (but by far the largest in terms of historic responsibility) will no longer be bound by international law to submit progressively more ambitious targets and plans. Some countries may feel emboldened to either also leave (so far only Argentina seems likely, but others may emerge), but many will likely just lower their ambition. This no doubt explains why only a handful of countries have submitted their revised targets for 2035 despite a February deadline.
In addition, we have seen the departure of all US banks from the Net Zero Banking Alliance, followed shortly afterwards by their Canadian counterparts. This followed a concerted attack by Republican politicians on ESG and “woke capitalism” over the last few years, which saw corporate executives hauled before congress to face accusations of collusion and conspiracy over their investment policies, and litigation, including a case brought by 11 states attorneys general against three investment managers – Vanguard, Blackrock and State Street.
Closer to home, a rightward shift in EU politics has seen it retreat from its role as the “global regulatory superpower”, in favour of a new focus on deregulation as a hoped-for solution to its sluggish growth. At the time of writing, it remains unclear what exactly will emerge from its Omnibus Simplification Package (expected on 26 February).
It will definitely see a relaxation of deadlines, a reduction in the number of companies falling within its scope, and potentially a reduction in the number of metrics that need to be included in reports. However, we are unlikely to see a wholesale dismantling of climate reporting and transition plans, much less the EU’s wider green agenda. Businesses are already too invested in the transition – see for example the letter signed by over 200 financial actors who called on the EU to “preserve the integrity and ambition” of the “fundamental cornerstones of the EU’s sustainability policy architecture”.
In the UK, it remains to be seen whether the government’s recent rhetoric on growth and competitiveness will see a slowing of its climate ambition. Its latest nationally determined contribution: an 81% reduction in emissions by 2035 – announced at COP 29 in Baku last year, and December’s launch of a detailed and ambitious plan to fully electrify the power system by 2030, suggest not.
While some much-needed simplification and streamlining of overlapping reporting regimes is needed, complexity is here to stay. The interconnected climate, nature and biodiversity crises will see to that. So too will the increasing overlap between sustainability and business and human rights regimes – with companies increasingly shouldering responsibilities for protecting human rights, including through national and EU due diligence and reporting regimes. Multinational corporations will need to navigate overlapping and often incompatible legal frameworks, requiring difficult trade-offs to be managed. Cutting through this complexity to see the bigger picture will be a vital – and highly marketable – skill.
In any event, it is important to separate the noise from the signal. None of this political or regulatory upheaval will change the scientific imperative to reduce greenhouse gas emissions, or the economic fundamentals that will continue to see demand for solar, wind, battery storage, EVs, heat-pumps and other emerging technologies soar, while costs plummet. But the laws that shape, and are shaped by, the energy transition will certainly change. And clients will need lawyers to help them navigate those changes.
One thing that we can be sure of is that the recent trend of growing climate litigation will accelerate. In the US, as the door has slammed shut on opportunities for legislative climate initiatives, at least at the federal level, we can expect to see blue states and civil society doubling down on litigation as a tactic. Growth areas are likely to be in cases against large corporations and financial institutions, and litigation or regulatory action that challenges unsubstantiated green claims.
In parallel, we will likely see litigation continue to be used as a tool by the Trump administration, its red state allies and industry groups, with SLAPP suits, antitrust and other cases and procedures. This wave of litigation will not be confined to the US. Case law will lead to the development of important legal principles that will have application beyond the US, and successful litigation strategies deployed there will be adapted and tailored for deployment in other jurisdictions.
This will all lead to heightened litigation risk that clients will need counsel to help them manage, while maintaining a competitive edge in a decarbonising world. For example, overly risk-averse advice to simply drop all sustainability claims will lead to clients losing market position to those who are prepared to stand by theirs. Lawyers who can provide strategic, commercial advice that balances risks with rewards will be in the highest demand.
The Net Zero Lawyers Alliance
This all might seem overwhelming, particularly for aspiring lawyers or those at the early stage of their career. In some ways, however, they are best placed to equip themselves with the skills they need to be the industry leaders of the future.
Fortunately, there are several organisations that are focused on supporting lawyers working on climate and sustainability. Getting involved with them is a great way to develop vital skills, build your network and put your expertise towards tackling the climate crisis. The Net Zero Lawyers Alliance is one. Our mission is to mobilise the legal profession to accelerate the transition to net zero. Our 35-member firms have pledged to set science-based targets to reduce their emissions, devote pro bono hours, and develop and deliver net zero-aligned legal services through our ‘Accelerator Groups’.
Those groups bring together leading lawyers to identify the key legal issues that are currently blocking the transition and collaborate to develop legal solutions that can convert those blockers into accelerators of the transition. One such issue is competition law. Net zero alliances and other voluntary initiatives are essential in addressing the collective action problem that explains a large part of the inadequacy of the global climate response. The NZLA has developed legal resources that explain why such initiatives are permissible under UK and EU law and is working on applying those principles in the US context.
An important role that the NZLA plays is in building the capacity of the legal profession to provide net zero-aligned legal advice, including by developing shared resources, such as the Law and Climate Atlas, Framework for Net Zero Alignment, and our Competition Law 101.
Conclusion
Lawyers have an essential role to play in the transition to net zero. Despite political headwinds, climate change is not going anywhere – it is an existential challenge but also a tremendous opportunity – especially for lawyers. Clients will demand skilled lawyers who are able to help them navigate a rapidly changing policy and regulatory landscape. Over the last few years, firms have developed specialist ESG, climate and sustainability practices. But climate intersects every area of practice. Whether you are a tax, finance or litigation lawyer, working in-house, in private practice or in government, your practice will need to develop to address climate change.
We are all climate lawyers now – and will continue to be so for the foreseeable future.
Alan Andrews will be exploring how climate change impacts every aspect of legal practice at Bush House, King’s College London, on Thursday 13 February.
In a session hosted by the Professional Law Institute, Alan and his colleagues at Net Zero Lawyers Alliance will examine how legal disciplines must adapt to address the climate crisis. Using the Law and Climate Atlas, they will examine key areas of law – including public, company, environmental, intellectual property and tort law – to uncover actionable strategies for lawyers navigating this unprecedented challenge.
The Future of Legal Practice: Net Zero and the Climate Imperative Across Legal Disciplines will be chaired by Lloyd Gash, senior lecturer in law at the Professional Law Institute.