The Changing Legal Landscape for LNG Shipping Expansion
research 2026-01-08
Gas Methane Shipping Private Finance Issue Brief Climate Litigation

The Changing Legal Landscape for LNG Shipping Expansion

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.

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.

Support SFOC
in creating winning climate movements!

Donate
  • Policy Research and Recommendations

    Policy Research and Recommendations

    We conduct in-depth analysis of climate, energy, industrial, and economic policies to propose viable policy alternatives and help bring about real policy change.

  • Legal Action and Litigation

    Legal Action and Litigation

    We hold corporations and governments accountable when they delay climate action, utilizing a range of legal strategies, including litigation, to drive policy improvement.

  • Communications and Campaigns

    Communications and Campaigns

    We believe that the power to change the world lies with people. Through compelling messages and diverse communication channels, we raise public awareness about the climate crisis and inspire collective action.

  • International Cooperation

    International Cooperation

    We understand that climate change knows no borders. Through networking and collaboration, we work with global environmental organizations to promote change at the international level.

Solutions for Our Climate

CEO

Joojin Kim

Registration No.

561-82-00137

Address

505 5th Fl., HEYGROUND, 5 Ttuksseom-ro 1na-gil, Sungdong-gu, Seoul, Republic of Korea (04779)


TEL

02-6013-0137