September 11, 2025 — Australia’s flagship North West Shelf gas project is facing heightened legal and regulatory risks after a landmark international climate ruling that could redefine how governments and corporations are held accountable for greenhouse gas emissions.
According to warnings issued by Vanuatu, one of the most climate-vulnerable nations in the Pacific, the International Court’s opinion on states’ obligations under international law may directly affect large-scale fossil fuel operations such as the North West Shelf. The ruling clarifies that countries must take stronger action to curb emissions and prevent harm to other nations impacted by climate change.
The North West Shelf project, one of the world’s largest liquefied natural gas (LNG) developments, has long been central to Australia’s energy exports. But environmental groups argue that its carbon footprint is incompatible with global climate targets. Legal experts say the recent judgment could open the door to new lawsuits and stricter oversight, both domestically and abroad.
“This opinion is a wake-up call,” said one environmental law scholar. “It signals that projects which contribute significantly to global emissions may be seen as inconsistent with international climate obligations.”
Industry representatives maintain that LNG is vital for energy security and a transition away from coal, but critics argue that expansion plans lock in decades of fossil fuel dependency.
With climate litigation on the rise worldwide, the future of the North West Shelf may hinge on how Australia balances its economic reliance on fossil fuel exports with mounting international legal pressure to cut emissions.