About
This issue brief examines the rapidly evolving legal, regulatory, and financial landscape facing the liquefied natural gas (LNG) shipping sector, with a focus on Japanese shipowners expanding their LNG carrier fleets. Building on Solutions for Our Climate’s 2025 report No Room for More: Why LNG Carriers Are a Climate and Financial Risk, the brief provides an in-depth legal analysis of emerging climate litigation, human rights accountability, international maritime law, and sustainable finance frameworks.
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Executive summary
LNG shipping expansion is no longer a low-risk commercial activity. Rapid fleet growth, misalignment with climate targets, and rising speculative vessel orders have increased exposure to climate litigation, stranded assets, and financial loss. At the same time, courts, regulators, and international bodies are strengthening corporate accountability for climate impacts and human rights harms linked to fossil fuel projects.
Recent developments—including climate lawsuits, human rights findings related to LNG projects, and recent legal clarification by international maritime tribunals regarding climate obligations—signal that continued investment in LNG carriers may create significant legal and financial liabilities unless companies adopt credible transition strategies.
Key findings
LNG shipping expansion conflicts with climate goals and increases stranded-asset risk.
Climate litigation is expanding, targeting corporate duty of care, greenwashing, and transition-risk mismanagement.
LNG carriers are increasingly viewed as enablers of fossil fuel expansion, not neutral assets.
Human rights concerns linked to LNG projects heighten ESG and legal exposure.
International maritime law and sustainable finance rules are tightening, increasing regulatory and financial risk for shipowners and financiers.






