Lawsuit involves potentially misleading fossil fuel advertising
PETALING JAYA: Environmental watchdog RimbaWatch has taken two ministries to court in what it calls the country’s first climate litigation case, alleging inaction on potentially misleading fossil fuel advertising that may amount to greenwashing.
The judicial review, filed last week at the Kuala Lumpur High Court, names the Natural Resources and Environmental Sustainability Ministry (NRES) and the Domestic Trade and Cost of Living Ministry.
RimbaWatch said the lawsuit follows a formal complaint lodged on Sept 20 against a fossil fuel company marketing a product as “carbon neutral”, a claim the group says is misleading and harmful to consumers and the environment.
It lodged the complaint with the Domestic Trade and Cost of Living Ministry, which oversees consumer protection, and NRES, which is tasked with preventing pollution and safeguarding the environment.
“We suggest that, if indeed these claims are misleading as we believe, they could harm both consumer protection and climate protection interests,” it said.
However, on Sept 30, the Domestic Trade and Cost of Living Ministry said the matter falls outside its jurisdiction and advised the watchdog to approach NRES.
Meanwhile, NRES said the complaint is beyond its remit and directed the group to the other ministry.
“The practical effect of these decisions is that there is seemingly no government agency empowered to investigate potentially misleading advertising or marketing claims related to climate protection,” said RimbaWatch.
It stressed that the matter highlights a major regulatory gap in Malaysia and if credible greenwashing allegations are ignored, consumer rights and climate protection suffer.
The case draws on the International Court of Justice’s (ICJ) Climate Change Advisory Opinion issued on July 23, which sets a “stringent” standard of due diligence for states in protecting the climate.
The ICJ opinion requires governments to establish effective national systems-laws, enforcement mechanisms and administrative procedures, and to ensure these systems function. Failing to investigate credible allegations breaches this standard, it said.
The lawsuit also reflects rising concern over corporate greenwashing in Southeast Asia.
Greenwashing misleads the public by exaggerating companies’ environmental efforts, promotes false solutions to climate change and delays real action.
“Malaysia, unlike regional counterparts such as Singapore, has yet to develop regulatory guidance on greenwashing, nor have they acted proactively to address misleading claims being made.
“We are hopeful that this suit will act as a wake-up call to Malaysian authorities to address greenwashing, improving alignment between corporate actions and Malaysia’s national climate and developmental priorities.”
RimbaWatch said the suit aims to protect consumers and ensure corporate claims do not undermine Malaysia’s climate commitments.
