petition

Kang et al. v. KSURE and KEXIM - petition

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Litigation

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On March 23, 2022, one Korean national and three Australian nationals, who are members of the indigenous community in the Tiwi Islands, Northern Territory, brought a claim against the Korea Trade Insurance Corporation, and Korea Export Import Bank, Korean public financial institutions that are functioning as export credit agencies planning to provide financial support to the development project for the Barossa fossil gas reserve off the coast of Northern Territory, Australia, near the Tiwi Islands (“Barossa Gas Project”). The Barossa Gas Project is being developed by SK E&S (Korea), Santos (Australia) and JERA (Japan). SK E&S purchased 37.5% of the stake in the project in June 2012, reached a final investment decision in March 2021, and applied for export credit guarantee to the defendants. The plaintiffs are seeking preliminary injunction against the defendants not to provide any financial support in relation to the Barossa Gas Project. 

The plaintiffs argued that the project will cause significant environmental harm due to (i) 15Mt p.a. of CO2 emission throughout the entire life cycle of the fossil gas produced and consumed (ii) environmental harm to the marine ecosystem impacting the endangered sea turtle species and the livelihood of the indigenous communities. Plaintiffs also argued that the project has significant legal risk as (i) the developer companies have not completed the requisite consultation process with the indigenous communities and due to (ii) potential dispute over the control of the gas field with Indonesia as it is located within the Indonesian EEZ. Plaintiffs further argued that the project has significant financial risk as (i) development of new fossil gas wells are incompatible with the climate goals under the Paris Agreement (ii) the demand for fossil gas is expected to fall 55% by 2050 according to the IEA projection of the 2050 Net Zero scenario, and (iii) CCS technologies are not mature enough to guarantee reliable capture and storage of the CO2 emissions, creating serious risk of cost overrun.  The claim is based on the environmental rights stipulated under Art. 35 of the Korean Constitution and property rights of the indigenous individuals living in the Tiwi Islands. Plaintiffs also invoked Art. 100 of the National Finance Act, which permits citizens to demand corrective measures against unlawful spending of public funds.

K-SURE withdrew the insurance needed to underwrite SK E&S's investment in the Timor Sea project in February 2024.

The Seoul District Court dismissed plaintiffs’ application for preliminary injunction, finding that that environmental rights under Article 35 of the Constitution did not provide plaintiffs with a judicially enforceable claim. The court also found Article 100 of the National Finance Act as inapplicable because no public funds for the project had yet been executed. The court further noted that the plaintiffs failed to demonstrate that irreparable harm would occur if the injunction were not granted, as alternative venues are available in Australia and SK E&S could obtain alternative funding from other partners even if the injunction were granted.

Kang et al. v. KSURE and KEXIM

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

People with different national or cultural traditions from the dominant population

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities involving the management, development, and sale of property assets.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A financial institution that manages a country's currency and can promote climate-related initiatives through green monetary policy and other means.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

An agency providing government-backed financing, guarantees, and insurance to support domestic companies' international exports, that can play a role in financing climate-related projects.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

This sector involves activities to move goods and people, alongside the storage of products.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Kang et al. v. KSURE and KEXIM - petition

Target

Policy instrument

Risk

Impacted group

Just transition

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance