Issue - January 6, 2026

Good morning, and Happy New Year. ESG Litigation Weekly is back following the Christmas and New Year break. It’s Tuesday, January 6, and this week’s issue covers key developments from the past two weeks, including Equinor and Ørsted’s efforts to block the offshore wind lease suspension orders, the European Commission’s new pilot measures on circular plastics and recycling ahead of a planned 2026 Circular Economy Act, and a Ninth Circuit order temporarily blocking Hawaii from enforcing the cruise-ship provisions of its new climate-resilience tourist tax while the case is on appeal, and more.

Equinor and Ørsted Move to Block the Lease Suspension Orders for U.S. Offshore Wind Projects
Equinor said its project company, Empire Offshore Wind LLC, filed a civil suit in the U.S. District Court for the District of Columbia challenging the U.S. Department of the Interior’s (DOI) December 22 lease suspension order that halted on-lease activities for Empire Wind 1 on national security grounds. Equinor said it plans to seek a preliminary injunction to allow construction to continue while the case proceeds, citing risks to the project’s timeline, commercial terms, and financing during a critical execution phase. Ørsted also said Revolution Wind LLC (a JV with Skyborn Renewables) filed a supplemental complaint in the same court challenging DOI’s lease suspension order and will seek a preliminary injunction to block it.
🔗 Read more → Equinor’s Press Release, Orsted’s Press Release

Mercedes-Benz Reaches Multi-State Settlement Over Remaining U.S. BlueTEC Diesel Claims
Mercedes-Benz USA and Mercedes-Benz Group AG reached settlements with a multistate coalition of attorneys general to resolve remaining state environmental and consumer protection claims tied to the emission control systems in Model Year 2009-2016 BlueTEC II diesel passenger cars and vans. The agreement totals $149.7 million, including $120 million payable upon effectiveness and $29.7 million suspended that may be reduced/waived based on consumer relief outcomes. Mercedes will also run an AEM Installation Incentive Program, offering $2,000 per eligible vehicle to qualifying owners/lessees who complete the approved emissions modification (AEM) and submit a valid claim. Mercedes denies liability, and the settlements remain subject to final court approval.
🔗 Read more → State of Connecticut’s Consent Judgment and Order, Mercedes-Benz’s Press Release

Swiss Court Admits Indonesian Pari Islanders’ Climate Suit Against Holcim
In a procedural decision, the Cantonal Court of Zug ruled that a civil climate lawsuit brought by four residents of Indonesia’s Pari Island against Holcim AG is admissible and will proceed. The plaintiffs allege repeated flooding and sea-level impacts and argue Holcim’s emissions contribute to violations of their personality rights and property damage. They seek an order requiring group-wide (Scope 1, 2, and 3) CO₂ emissions reduction and payments toward flood protection and compensation. The court stressed it was not deciding the merits. The decision may be appealed to the Zug Higher Court within 30 days of service.
🔗 Read more → Cantonal Court of Zug Decision

Stichting Frisse Wind Files Dutch Collective Action Against Tata Steel Subsidiaries
Stichting Frisse Wind.nu served a writ of summons on December 19 on Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V., launching a collective action in the District Court of North Holland (Haarlem) under the Dutch Act on Collective Damages in Class Actions (WAMCA: Wet afwikkeling massaschade in collectieve actie) regime. The foundation says it acts for residents living near Tata Steel’s Velsen-Noord operations and alleges emissions of hazardous substances have increased health risks, reduced the enjoyment of homes, and contributed to lagging home value development. The summons seeks about €1.40 billion in compensation, including €685.4 million in non-material damages and €716.4 million tied to home value impacts. Tata Steel says it will contest both admissibility and the merits.
🔗 Read more → Summons via de Rechtspraak, Tata Steel’s Regulation 30 of SEBI (LODR)

EU Unveils Pilot Measures to Strengthen Circular Plastics and Recycling
The European Commission has unveiled a first set of pilot actions to accelerate Europe’s transition to a circular economy, with an initial focus on plastics and a broader Circular Economy Act planned for 2026. The package aims to reduce market fragmentation and includes a draft implementing act to set EU-wide end-of-waste criteria for plastics under the Waste Framework Directive, which is open for feedback until January 26, 2026. Furthermore, it submitted an implementing act for Member State vote on recycled content in PET single-use plastic beverage bottles under the Single-Use Plastics Directive, intended to clarify how chemically recycled plastics can contribute to EU targets under certain conditions. The Commission also said it will relaunch the Circular Plastics Alliance and is creating separate customs codes for virgin and recycled plastics to support enforcement and fair competition.
🔗 Read more → European Commission (Press Release, Draft Act and Give Feedback)

9th Circuit Blocks Hawaii’s New Cruise-Passenger Climate Tourist Tax Pending Appeal
A federal appeals court order on December 31 blocked Hawaii from enforcing the cruise-ship provisions of Act 96, a climate-resilience tourist tax set to begin at the start of 2026. Cruise Lines International Association (CLIA) sued, arguing the law violates the U.S. Constitution by effectively taxing ships for entering Hawaii ports and would raise cruise costs. The measure would impose an 11% tax on passengers’ gross fares, prorated for the days a vessel is in Hawaii ports, and counties could add a 3% surcharge (up to 14% total). After U.S. District Judge Jill A. Otake allowed the law to proceed, both the plaintiffs and the U.S. government (which intervened in the case) appealed, and the Ninth Circuit granted an injunction pending appeal.
🔗 Read more → The Associated Press

France’s PFAS Ban Takes Effect, With Product Exemptions
France’s Law No. 2025-188 has taken effect (January 1, 2026) for key consumer products, banning the manufacture, import, export, and placing on the market of PFAS-containing cosmetics, ski wax, and consumer clothing textiles/footwear, including related waterproofing agents, with an exemption for specified protective and safety gear. The law also strengthens PFAS monitoring in drinking water and introduces a PFAS discharge fee for certain industrial sites releasing PFAS into water. A broader ban on all textiles applies from January 1, 2030, with exemptions for essential uses, national sovereignty, and certain industrial technical textiles (to be set by decree). Cookware was removed from the final text after lobbying, according to reports.
🔗 Read more → Euronews, Légifrance (LOI n° 2025-188 du 27 février 2025)

U.S. Interior Department Pauses Leases for Five Offshore Wind Projects
On December 22, the U.S. Department of the Interior (DOI) ordered an immediate pause of leases for five large-scale offshore wind projects under construction: Vineyard Wind 1, Revolution Wind, CVOW Commercial, Sunrise Wind, and Empire Wind 1. It cites national security risks identified in classified reports. DOI said the pause will allow federal agencies to work with leaseholders and state partners on potential mitigations, pointing to longstanding concerns that turbine blades and reflective towers can create radar “clutter” that obscures real targets (Equinor’s and Ørsted’s legal challenges following this order are covered in the ESG Casefile above).
🔗 Read more → U.S. Department of the Interior

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RimbaWatch Seeks Judicial Review After Malaysian Ministries Decline to Probe Alleged “Carbon Neutral” Fossil Fuel Marketing
RimbaWatch filed for judicial review in the Kuala Lumpur High Court against the Ministry of Domestic Trade and Cost of Living (KPDN) and the Ministry of Natural Resources and Environmental Sustainability (NRES) after its September 20, 2025, complaint about alleged misleading “carbon neutral” marketing was redirected between the two ministries. RimbaWatch says both agencies declined to investigate on jurisdictional grounds and argues this leaves no clear regulator to act on climate-related misleading advertising. The case, reputed to be the first-of-its-kind climate litigation case in Malaysia, is scheduled to be heard on January 21, 2026.
🔗 Read more → FMT

2025 US Climate Accountability Litigation: Key Wins, Setbacks, and What to Watch in 2026
U.S. climate accountability litigation continued to build in 2025, with many state and local cases against major oil companies surviving efforts to dismiss or move them to federal court. The U.S. Supreme Court declined to step in on key procedural fights, including matters tied to Honolulu and an unusual bid backed by Republican-led states. There were setbacks too: Puerto Rico dropped its case, and Charleston opted not to appeal. The landscape also broadened, with newer lawsuits testing theories tied to extreme-heat deaths and rising insurance costs. The next battleground may be pushback for a federal liability shield in 2026.
🔗 Read more → The Guardian

Additional Notable “Older” Updates in Case You Missed Them:

Parliament Approved a Provisional EU Agreement on Updating Corporate Sustainability Reporting and Due Diligence Rules on December 16
🔗 Read more → European Parliament’s Press Release

Japanese Government Faces Climate Damage Lawsuit over Climate Inaction
🔗 Read more → Bloomberg

Montana Supreme Court Dismisses “Held 2.0” Youth Climate Petition
🔗 Read more → Case Information via Montana Supreme Court

Catch up on previous editions → ESGLitigation.com

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