New Burford Capital Research Reveals how Businesses are Preparing for Likely Rise in Global Energy Transition Disputes
Burford Capital releases new research on energy transition disputes, revealing significant challenges businesses face as they shift to renewable energy. The study, based on insights from 300 GCs and heads of litigation across key industries, shows that 76% of GCs are already experiencing energy transition-related disputes, with 47% expecting further increases in the next decade. 63% of GCs anticipate legal fees exceeding $4 million per case, while 29% expect costs over $10 million. The research highlights that 77% of GCs predict increased contractual disputes, with 75% considering legal finance to offset dispute costs.
Burford Capital pubblica una nuova ricerca sulle controversie legate alla transizione energetica, rivelando sfide significative che le aziende affrontano durante il passaggio verso l'energia rinnovabile. Lo studio, basato su informazioni provenienti da 300 Direttori Giuridici e capi della contenzioso di settori chiave, mostra che il 76% dei Direttori Giuridici sta già vivendo controversie relative alla transizione energetica, con il 47% che si aspetta un ulteriore aumento nel prossimo decennio. Il 63% dei Direttori Giuridici prevede spese legali superiori a 4 milioni di dollari per caso, mentre il 29% prevede costi superiori a 10 milioni. La ricerca evidenzia che il 77% dei Direttori Giuridici prevede un aumento delle controversie contrattuali, con il 75% che considera il finanziamento legale per compensare i costi delle controversie.
Burford Capital publica una nueva investigación sobre disputas relacionadas con la transición energética, revelando los desafíos significativos que enfrentan las empresas al cambiar a energías renovables. El estudio, basado en información de 300 Directores Jurídicos y jefes de litigio en industrias clave, muestra que el 76% de los Directores Jurídicos ya están experimentando disputas relacionadas con la transición energética, con el 47% que espera un aumento adicional en la próxima década. El 63% de los Directores Jurídicos anticipan honorarios legales que superan los 4 millones de dólares por caso, mientras que el 29% espera costos superiores a 10 millones. La investigación destaca que el 77% de los Directores Jurídicos predice un aumento en las disputas contractuales, con el 75% considerando la financiación legal para compensar los costos de las disputas.
버포드 캐피탈이 에너지 전환 관련 분쟁에 대한 새로운 연구를 발표하였습니다. 이 연구는 기업들이 재생 가능 에너지로 전환하는 과정에서 직면하는 주요 도전 과제를 밝혔습니다. 300명의 법률 고문 및 주요 산업의 소송 책임자들로부터 얻은 통찰에 기반하여, 연구 결과 76%의 법률 고문이 이미 에너지 전환 관련 분쟁을 경험하고 있으며, 47%는 향후 10년 동안 이러한 분쟁이 더 증가할 것이라고 예상하고 있습니다. 63%의 법률 고문은 사건당 법적 비용이 400만 달러를 초과할 것이라고 예상하며, 29%는 1,000만 달러 이상의 비용을 예상하고 있습니다. 연구는 77%의 법률 고문이 계약상 분쟁이 증가할 것이라고 예측하고 있으며, 75%는 분쟁 비용을 상쇄하기 위해 법적 금융을 고려하고 있음을 강조하고 있습니다.
Burford Capital publie une nouvelle recherche sur les litiges liés à la transition énergétique, révélant les défis importants auxquels les entreprises sont confrontées lors de leur passage aux énergies renouvelables. L'étude, fondée sur les avis de 300 Directeurs Juridiques et chefs de contentieux de secteurs clés, montre que 76% des Directeurs Juridiques connaissent déjà des conflits liés à la transition énergétique, avec 47% s'attendant à une augmentation supplémentaire dans la prochaine décennie. 63% des Directeurs Juridiques prévoient des frais juridiques dépassant 4 millions de dollars par affaire, tandis que 29% prévoient des coûts supérieurs à 10 millions. La recherche souligne que 77% des Directeurs Juridiques prévoient une augmentation des litiges contractuels, avec 75% envisaging de recourir au financement juridique pour compenser les coûts des litiges.
Burford Capital veröffentlicht eine neue Studie zu Streitigkeiten im Zusammenhang mit dem Übergang zur erneuerbaren Energie und zeigt erhebliche Herausforderungen auf, denen Unternehmen gegenüberstehen. Die Studie, die auf Erkenntnissen von 300 General Counsel und Leitern der Rechtsabteilung aus wichtigen Branchen basiert, zeigt, dass 76% der General Counsel bereits mit Streitigkeiten im Zusammenhang mit dem Energieübergang konfrontiert sind, während 47% in den nächsten zehn Jahren mit weiteren Zunahmen rechnen. 63% der General Counsel erwarten, dass die Rechtskosten 4 Millionen Dollar pro Fall übersteigen, während 29% mit Kosten über 10 Millionen rechnen. Die Forschung hebt hervor, dass 77% der General Counsel ein erhöhtes Maß an vertraglichen Streitigkeiten vorhersagen, wobei 75% die Inanspruchnahme von Rechtsfinanzierung in Betracht ziehen, um die Streitkosten auszugleichen.
- 75% of GCs are open to using legal finance solutions, indicating strong potential demand for Burford's services
- Growing market opportunity with 76% of GCs already experiencing energy transition disputes
- 47% expect increase in dispute volume over next decade, suggesting sustained long-term demand
- 52% of GCs cite high costs as barrier to pursuing disputes, potentially limiting market size
- 50% of GCs indicate need for additional capital sources, suggesting potential resource constraints
Insights
The research reveals significant implications for the legal and business landscape surrounding energy transition disputes. With
The anticipated rise in contractual disputes, commercial arbitration and investor-state conflicts signals a complex legal environment ahead. The high cost barrier to pursuing claims (
The increasing acceptance of legal finance solutions (
This research highlights a significant emerging market opportunity in the legal finance sector. Burford Capital is well-positioned to capitalize on the expected surge in energy transition disputes, with their established expertise in litigation financing. The high anticipated costs per case (
The data showing
Nearly two in three GCs expect legal fees and expenses to exceed
Businesses are investing significant sums in this transition, and corporate commitments highlight the scale of economic engagement as they invest in the new technologies, infrastructure and other resources that will be needed. But multifaceted legal and commercial pressures present businesses with a myriad of potential challenges including contractual disagreements, regulatory compliance issues and the need for intellectual property enforcement or litigation. Burford's research report aims to offer a unique perspective on how corporations foresee the expected rise in litigation and arbitration related to this energy transition, examining the areas of business impact related to this evolving landscape.
Burford commissioned this independent research by capturing insights from 300 GCs and heads of litigation across key industries impacted by the energy transition and spanning
Key findings from the study include:
Disputes relating to the energy transition are rising
76% of GCs report they are already encountering disputes related to the energy transition and nearly half (47% ) expect a further rise in the volume of such disputes in the next decade, driven by evolving laws, new technologies and infrastructure requirements.
Disputes relating to the energy transition are expected to be costly
- Almost two in three GCs (
63% ) expect legal fees and expenses to exceed$4 million 29% ) expect per case costs to exceed$10 million - Over half (
52% ) view high costs as a significant factor in deciding not to pursue disputes. - Half (
50% ) of GCs agree that the energy transition will create the need for additional capital sources for the business.
Expected disputes span all types of business conflict
- GCs are most likely to predict (
77% ) that the energy transition will result in more contractual disputes and commercial arbitration. - Joint ventures are expected to be particularly prone to disputes over profit allocation (
76% ) and intellectual property rights (65% ). - Over half of GCs (
57% ) also expect their businesses to face arbitrations to resolve investor-state conflicts relating to the transition.
New tools are needed to manage the rising dispute costs
- Legal finance is increasingly used to mitigate the financial burden of these disputes; three in four (
75% ) GCs have used or would consider using legal finance to offset the cost of disputes relating to this transition. - In particular, GCs value monetization―or advancing some of the expected entitlement of a pending claim, judgment or award― to generate liquidity from claims tied up in litigation and arbitration. With legal finance, companies can also offset the cost of pursuing affirmative litigation to generate liquidity, shifting legal departments from cost centers to value drivers.
Christopher Bogart, CEO of Burford Capital, said: "Businesses face significant challenges related to the global energy transition due to cross-border projects, differing legal frameworks and rapidly evolving policies. Additionally, long-term energy contracts may not keep pace with energy markets and technologies, resulting in conflicts among stakeholders. Burford's latest research demonstrates the value of corporate finance for law, as legal finance helps companies manage the high costs of energy transition disputes and allows them to pursue meritorious claims without depleting resources."
Burford's research is based on a 2024 survey conducted by GLG and is supplemented by interviews with ten global energy transition experts conducted by Ari Kaplan Advisors.
The research report can be downloaded on Burford's website.
About Burford Capital
Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in
For more information, please visit www.burfordcapital.com.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.
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SOURCE Burford Capital
FAQ
What percentage of GCs expect legal fees to exceed $4 million per energy transition case for Burford Capital (BUR)?
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What percentage of GCs would consider using Burford Capital's (BUR) legal finance for energy transition disputes?
What is the expected increase in energy transition disputes over the next decade according to Burford Capital (BUR)?
